Private equity deals in Israel fell 10% in 2012: 46 Israeli private equity deals totaled $2.6 billion, down from the $2.9 billion invested in 63 deals in 2011, IVC Research Center and Gross, Kleinhendler, Hodak, Halevy, Greenberg and Co. today. The survey covered 82 private equity funds.
The $1 billion buyout of oil and gas exploration software developer Paradigm Geophysical Inc. by Apax Partners and JMI Equity accounted for 39% of total private investments in 2012, skewing the annual total upwards. The average deal size rose to $56.2 million in 2012 from $45.6 million in 2011.
The proportion of private equity investment by Israeli firms fell to $530 million, 21% of all investment in 2012 from $963 million, 33% of total investment in 2011. The largest private equity deals by an Israeli fund was Fortissimo Capital's $80 million buyout of roaming solutions developer Starhome BV and its $40 million investment in Phoenicia America-Israel (Flat Glass) Ltd.
The IVC Online database maintains data on 24 active Israeli private equity management companies with an aggregate $7.8 billion under management. Four Israeli private equity funds raised $1.1 billion in 2012.
GHK partner and head of M&A Rick Mann said, "The first quarter of 2013 has already seen the beginning of significant activity by foreign hedge funds in distressed debt situations, and it will be interesting to see whether this becomes part of a broader pattern in Israel."
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2013
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