Stella Cohen, a former Phoenix Holdings director and global private equity executive, launched DAVID GROUP on Sunday with former Goldman Sachs partner Raanan Agus as chairman, betting that Israel’s less-publicized non-tech industries can attract global investment.
The Herzliya-based private equity fund will focus on mature Israeli companies and companies with significant ties to Israel, particularly in financial services, defense, industry and technology-enabled business services
The launch comes as Israel’s economy remains widely associated abroad with its high-tech sector, often branded the “Startup Nation.” DAVID GROUP says it sees opportunity in companies outside the technology sector that need capital to expand, restructure or grow internationally.
The fund said it had raised significant capital before its launch, though it did not disclose the amount.
DAVID GROUP said it will seek partnerships with companies operating in Israel or abroad that were founded or are led by Israelis, have significant operations or assets in Israel or operate in sectors where Israel has a strong competitive base.
The fund is also positioning itself as a local partner for large international private equity firms looking at Israeli or Israel-linked large-cap investments.
“The non-tech sector in Israel has to some extent been left behind compared with the success story of the ‘Startup Nation,’” Cohen said. “Many Israeli businesses outside the technology sector can benefit from private equity investment in order to grow, transform, expand internationally and create long-term value.”
She said the fund grew out of her “two great passions: investments and Israel.”
“Israel is a country of unique talent and also the place where I chose to live with my family,” Cohen said.
Agus said the fund was formed out of confidence in Israel’s economy despite years of geopolitical and economic pressure.
“Stella, the team and I believe in the bright future of the Israeli economy, after it has shown impressive resilience and growth even during periods of geopolitical and economic crises and wars,” he said.
Cohen has more than 20 years of experience in mergers and acquisitions and private equity. She previously served on the board of Phoenix Holdings, led private capital investments for J. Safra Group and CDPQ and practiced M&A law at Wachtell, Lipton, Rosen & Katz in New York.
Agus spent 32 years at Goldman Sachs, including 24 years as a partner, and held senior investment roles across public and private markets.
DAVID GROUP said its advisory board includes current and former senior executives from BlackRock, Goldman Sachs, McKinsey, Israel Aerospace Industries and the Tel Aviv Stock Exchange.