Private equity in the doldrums

The value of buyout deals in the first nine months of 2013 was down 56% on last year.

After nine months, 2013 is shaping up to be a less active year for buyouts by private equity funds. According to the "Summary of Israeli Private Equity Deals for the third quarter" by IVC and the Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co. law firm, there were 11 buyouts totaling $784 million in January-September, 56% less than the $1.7 billion in 15 buyouts in the corresponding period of 2012.

There were eight Israeli private equity deals totaling $547 million in the third quarter and 29 deals totaling $1.6 billion in January-September. The largest deal in the third quarter was the acquisition of 25% of Mobileye Ltd. for $400 million by a number of foreign private equity funds and other investors.

GHK partner and head of M&A Rick Mann said, "The third quarter of 2013 reflects a decrease in buyout activity in Israel. While the local PE funds, particularly Viola Private Equity and First Israel Mezzanine Investors Fund (FIMI), continue to play an active role in the local market, buyout transactions by foreign PE funds have slowed significantly. This is in sharp contrast to the strong market for strategic technology acquisitions in Israel throughout the past year, with indications that this trend will continue going forward."

Published by Globes [online], Israel business news - - on November 4, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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