ehudmichman

Document Sample
ehudmichman Powered By Docstoc
					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
  alternatives?

 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)
  THANK YOU




 THE PHOENIX GROUP
We Are With You When It Counts