ehudmichman by cuiliqing


									Institutional Investment Strategies
          The Israeli View

                     Ehud Michman
        Head of Alternative Investments Division
         Phoenix Investments and Finance Ltd.

IVA Conference 2006                         June 20, 2006
   Who We Are?

 Phoenix is one of the 4 largest Insurance groups in Israel

 Active in all traditional insurance areas

 About $10 Billion under management

 One of the most proactive institutional players in Private
  Equity and Venture Capital
   Phoenix PE Program (Including VC)

 Established in 2003

 27 Funds (16 VC Funds)

 Total commitments: $140M (VC - $60M)

 Committed: 5% of total Portfolio (VC – 2%)

 Invested: 1.3% of total Portfolio (VC – 0.3%)

 Long term target: Investment of 5% of total Portfolio (VC – 1.5%)
 Why Israeli Institutional Investors Are Not There?
 Historical Barriers:

 Historical high interest rates: Why bother with

 Regulation (double fees, designated bonds)

 Young industry with no consistent proven track record

 2000 bubble – weak returns
 Current Barriers: The J Curve Effect

 Regulation: over-transparency requirements

 One time problem: first mover (dis)advantage
 Challenges in Managing VC Portfolio

 J Curve mitigation

 Selection is critical

 Due diligence capabilities

 Access to best funds

 Negotiation abilities
VC in Israel – Phoenix Strategy

    Strategic Partnership with Vintage II Fund of
    Funds led by Mr. Alan Feld

   Improved deal flow
   Better access to best funds
   Enhanced due diligence capabilities
   Dynamic co-investment opportunities
   Better deal terms (sponsored model)

We Are With You When It Counts

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