Vertex Management Israel is in advanced negotiations to manage the portfolio of Poalim Capital Markets Technologies. If the negotiations are successful, Vertex Management will increase the capital it manages to $760 million. Vertex Management declined to respond to the report.
Israeli venture capital industry sources said that Poalim Capital Markets Technologies has been trying for some time to transfer management of its portfolio to one of the funds operating in the field. The sources added that Vertex Management’s performance over the past year motivated the decision to give it management of the Poalim Capital Markets Technologies portfolio.
It is believed that if Vertex Management does increase the capital it manages, it will be able to invest more on each financing round and appoint more representatives to company boards. Vertex Management will thereby exercise more influence on the way the portfolio companies are managed. It is also believed that Vertex Management will be able to merge similar activities of its new portfolio companies.
During, Bank Hapoalim this year published an offer to purchase for Poalim Capital Markets Technologies shares, less than two years after the latter’s IPO, and after Poalim Capital Markets Technologies burned all its IPO proceeds and lost 90% of its issue price. The company has reported losses of over NIS 40 million on its investments since its IPO, more than was raised in the IPO.
Poalim Capital Markets CEO Yoav Levy and Avi Gefen stepped down in 2002, and the company is currently headed by Poalim Capital Markets CEO Nir Brunstein. The company currently manages assets of $110 million.
Published by Globes [online] - www.globes.co.il - on January 5, 2003