Stanford Financial Group is investing $10 million in the Aqua Agro Fund, the cleantech venture capital fund of Gaon Agro Industries Ltd. (TASE: GAT), controlled by chairman Benjamin Gaon. The investment is for the fund’s entire eight-year lifespan, with a two-year option to extend. Aqua Agro Fund announced today that it had secured more than $30 million in financing with this investment. The fund added that the investment by Stanford Group was both financially and strategically important given the company’s exposure to large international markets.
Stanford Group provides a wide range of financial services, including financial advice, deal brokering, private and business banking, mutual fund management, real estate investment services, investment banking services, and private equity investments. The company has more than $43 billion in assets managed, and is expected to post $1.6 billion revenue in 2007.
Aqua Agro Fund manager Hillel Milo told “Globes”, “This participation will help us finance portfolio companies, because Stanford Group has exposure in the global market in the sectors we’re investing in. When our portfolio companies reach marketing stage, Stanford Group will unquestionably be able to help us penetrate markets.” Aqua Agro Fund’s other manager is Nir Blazer.
Last month, the fund announced that it was doubling its fundraising target to $100 million, which will make it equal in size to the water investment fund being organized by Shari Arison’s Arison Holdings Ltd..
Stanford Group's investment stands apart in that it is highly unusual for either Israeli companies or venture capital funds to invest in cleantech start-ups. Most cleantech investments in Israel are made in established companies with sales. Two exceptions are venture capital funds BHCO Group and NRVision Ltd.
Published by Globes [online], Israel business news - www.globes.co.il - on August 19, 2007
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