Swedish investment company EQT (Stockholm: EQT) has announced that it will invest a substantial proportion of its recently closed €2.2 billion EQT Growth fund in Israeli companies. EQT has an investment portfolio of €77 billion. Its announcement states that the fund will take an “active approach to unleashing sustainable growth in Europe and Israel’s leading technology companies.”
It is not yet clear just how much of the fund will be invested in Israel. Each individual investment will be of €50-200 million, so that even if only a few Israeli companies are on the list, the amount flowing to Israel will be substantial. EQT says that investing in Israeli companies will also have the aim of promoting cooperation with portfolio companies in Europe. Among the investors in the fund, which exceeded its target of €2 billion, are pension funds, sovereign wealth funds, asset managers and high-net-worth individuals from across Europe, Asia, North America and the Middle East.
A delegation from EQT recently visited Israel and for two weeks surveyed local companies and met senior people from Israel’s technology sector. So far, EQT’s only investment in Israel has been a $100 million investment in cybersecurity company CYE. That move indicates at least one possible direction for future investments.
Shannee Braun, a director at EQT, told “Globes” that her firm saw Israel as one of the most attractive markets for the growth potential of companies and their value, and so it was looking for investment opportunities in the country. “Israel has a growing number of companies of a size that suits the amount of investment and the framework that we seek. We’re mainly aiming at fast growing companies.”
Braun says that Israeli technology companies accounted for 11% of total investment deals in Europe last year, far more than the relative size of the country would warrant. She say that this indicates superb innovation capabilities and the huge potential for the future.
Which particular areas is EQT looking to invest in?
“Fintech and of course cybersecurity are among the most interesting areas – these are fields in which Israel is one of the best research and development centers in the world.”
From the company’s announcement it can be understood that medical and environmental technologies are also areas of interest for investment.
Published by Globes, Israel business news – en.globes.co.il – on September 12, 2022.
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