Within a year: Three international funds raised over 1.5 billion shekels (over $420M) in Israel - solely from qualified private investors

The funds were raised for the investment funds of Carlyle, StepStone, and Coller Capital; This fundraising reflects the strong motivation of qualified private investors to access private foreign markets through major funds

TEL AVIV, Israel, Feb. 18, 2025 /PRNewswire/ -- Value Advanced Investments announces the successful completion of a 1.5 billion shekel fundraising round for three global funds managed by Carlyle, StepStone, and Coller Capital. The funds were raised from a wide range of qualified Israeli investors, with more than half of the amount allocated to funds specializing in the secondary strategy. The remaining funds are designated for investments in Private Debt and Private Equity funds.

Inbar Steiner, Managing Partner at Value Advanced Investments, which facilitated the fundraising: "The significant fundraising volumes are part of a growing trend of shifting investments by qualified private investors to the private capital market through investments in leading global private funds. This aims to counter the phenomenon of 'home bias' in investment portfolios and create effective diversification with exposure to global markets and private assets overseas."

More than half of the amount raised was invested in funds specializing in the secondary strategy.

Carlyle's direct lending fund (CDLF) specializes in the private debt sector; StepStone's SPRIM fund integrates multiple investment strategies, including private equity, mainly secondary and co-invest with some exposure to real assets (real estate and infrastructure) and private debt; and Coller Capital's Coller IX fund focuses on executing transactions in the PE secondary market.

Coller Capital 9^th vintage is expected to reach its final close in the coming months, while Carlyle's direct lending fund (CDLF) and Stepstone's private markets fund (SPRIM) are both operating as evergreen funds.

Recently, Value also began raising capital from qualified private investors for Viola Credit's ALF III fund, which operates in the debt sector and has seen overwhelming demand.

Value focuses, among other things, on making leading global investment funds accessible by establishing dedicated feeder funds, or setting up special structured vehicles, accommodating the needs of the Israeli qualified investors. These funds' structures overcome the strict entry barriers imposed by global mega-funds, such as high minimum investment thresholds that typically require several million dollars per investor, or the need to investigate many funds and receive clear thorough information on each of them. By pooling numerous private investors into a single feeder fund, Value significantly lowers the entry threshold for each individual investor (usually around $250,000 or more), while collectively surpassing the minimum investment requirements.

Moreover, aggregating many investors into one fund creates strong bargaining power, enabling Value to negotiate terms and costs similar to those granted to institutional investors.

More than half of the amount raised is allocated to funds specializing in the secondary market, as noted earlier. This strategy allows managers and investors to acquire stakes in private funds and replace existing shareholders. The secondary market provides a liquidity solution for the illiquid investment world, functioning as a large-scale "second-hand" market spanning multiple industries. The volume of such transactions expands significantly in challenging economic conditions, which amplify the need for liquidity through the sale of both liquid and illiquid assets.

The growing discourse around alternative investments, alongside the accelerated fundraising volumes, reflects two main trends.

The first trend is the entry into a new business cycle characterized by high interest rates and deep volatility in the public market. This accelerates the increased allocation to alternative investment assets, which are not subject to shifting market sentiments and offer particularly attractive investment opportunities, especially when public market price-to-earnings ratios are nearing record highs, naturally raising concerns about a sharp correction.

Secondly, in recent years, there has been a growing demand from Israeli private investors for investments in markets outside of Israel. This trend is driven by the outbreak of internal and external events (both social and security-related), which have heightened investors motivation to create effective diversification across asset types and markets, as part of an effort to mitigate the "home bias" phenomenon in investment portfolios.

 Additionally, Value's activities provide local investors with access and favorable entry conditions to international mega-funds that were, until recently, out of their reach. With this opportunity now available, investors are wisely seizing it.

Despite the significant progress and the consistent increase in the allocation of illiquid assets within both private and institutional investor portfolios, Value predicts that the trend is far from reaching its full potential. They expect this momentum to continue and even intensify in the future.

About Value
Value Advanced Investments is a leading alternative investment house representing "blue-chip" global asset managers and offering a broad range of alternative investment solutions to the Israeli investor community. Through strategic advisory and representation of some of the world's most prominent global funds, Value provides investors with access to private investment opportunities that are independent of the local market, collaborating closely with top-tier institutional entities both in Israel and worldwide.

The expertise of Value Advanced Investments, developed over many years under the umbrella of institutional operations, lies in its ability to establish strong relationships with leading fund managers and pave the way for qualified Israeli investors to access the world's most respected and prominent funds. This is achieved by tailoring fund selection and investment strategies to meet the specific objectives of each investor.

Value adheres to strict standards in its operational policies, leveraging its extensive experience and accumulated knowledge to forge the right connections with major entities boasting strong reputations, proven track records, and consistent performance over time, even through market cycles of booms and busts.

About StepStone
StepStone is one of the largest asset management firms globally, overseeing approximately $700 billion in assets under management or assets under advisory. StepStone invests an average of $70 billion annually in private markets, positioning itself among the world's leading private equity managers.

About Coller Capital
Coller Capital is one of the world's largest and most prominent investors in the secondary market. Led by Jeremy Coller, the pioneer of secondary investments, the firm has executed hundreds of secondary transactions since its establishment in 1990, amounting to tens of billions of dollars.

About Carlyle
Carlyle is one of the largest global investment firms, managing ~$450 billion in assets across a variety of investment strategies, including debt and private equity. Founded in 1987, Carlyle's team consists of over 2,300 professionals operating across 29 offices in four continents.

Contact:
Inbar Steiner
Managing Partner at Value Advanced Investments
[email protected]

SOURCE Value Advanced Investments