The third fund of Accelmed, which focuses on medical devices, has raised $115 million, and the fund hopes to increase this to $250 million in the coming months. Accelmed's first and second funds currently manage assets with an aggregate worth of $140 million. The money is invested in 18 companies, four of which have already been sold or held IPOs. The most prominent investor in the current and previous funds is the Arkin family, headed by Mori Arkin. Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) has invested in the second and third funds.
Arkin and managing partner Dr. Uri Geiger founded Accelmed. Geiger told "Globes" today, "I read in the papers that Israeli technology companies have to raise money overseas, but I can tell you that we have gotten a good response from Migdal and other investment institutions. There are definitely serious institutions investing large amounts here. They have to bring their depositors a return, and if you show them an interesting model of return and risk, they'll invest. I think we have done well by Migdal, and have given them very good returns."
Accelmed, Israel's largest medical devices fund, focuses on private equity investments in relatively mature companies with annual sales turnovers in excess of $30 million. The fund improves the companies, among other things by integrating technologies - usually those developed in Israel. Among others, Accelmed has invested in EndoChoice Holdings Inc.(NYSE:GI), which was merged with Israeli company Peer Medical in 2013, and which held its IPO in 2015 at a company value of $378 million; OIS, merged in 2009 with Israeli company MediVision and was sold in 2011 to Merge Healthcare; and others.
Geiger added, "Raising the new fund enables Accelmed to make larger and more significant deals, based on the platform model we have developed. The model, which combines the existing technological capabilities in Israel with mature global companies having a developed marketing and sales set-up, reflects Accelmed's abilities, and has proven itself as a tool for creating value for companies and investors. The giant corporations are currently focusing on companies with a significant revenue base and high growth rates. The new fund will specialize in applying the model for building and improving companies that match this profile. In addition, this is a new exit model for Israel companies having difficulty in moving from the development stage to the sales stage, and will make it possible to create significant companies based on technologies developed in Israel."
Published by Globes [online], Israel business news - www.globes-online.com - on December 16, 2015
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