Download First Israel Turnaround Fund

FIMI – Ishay Davidi
Ron Zuckerman
Roy Machnes
The Need
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In thriving and depressed financial markets companies
run into performance challenges.
Often the existing shareholders and debt-holders
(including the major banks) do not posses the necessary
skills nor the financial resources to correct the situation
Frequently banks are forced to deal with the leverage
issue and write down their loans while assuming
operational control
Moreover, currently all of the Israeli private equity sector
is focused on mature profitable companies and not on
turn-around situations
There are no distressed situations / turn around private
equity funds active in Israel
The Solution
Establish the first Israeli fund that will have the
required skills and focus for turning around mid to
large size companies
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First Israeli
Turnaround Enterprise - FITE
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FITE is a private equity fund founded by a highly
experienced management team with a proven track
record of investing, managing and successfully
realizing value
FITE brings together three general partners with a
unique and complementary set of skills
Roy Machnes – Managing Partner
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Founder and partner of Mashov Computers Ltd.
(Magic, Walla, Babylon, Paradigm Geophysical)
18 years of experience in daily management of hightech companies
Focused on turn-around in the last 3 years
Completed a number of successful, hands-on, turnaround projects
FIMI
FIMI, managed by Ishay Davidi, is the leading Israeli
mezzanine and buyout fund. FIMI has proven its ability to
increase the value its portfolio companies utilizing its
operational, organizational and financial capabilities
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Ron Zuckerman
Founder of Magnum – one of the most successful
investment teams in the Israeli high-tech industry
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Proven track record in turning around high-tech
companies and creating value to shareholders
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Investment Strategy
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FITE focuses on large companies with revenues > $40M
FITE purchases substantial or controlling interests in
target companies
FITE focuses on mature companies (not start-ups) that
can be improved through restructuring, better
management and improved financial resources
FITE will form, implement and execute a turnaround
plan and will maintain an active operational role in its
investment companies
FITE will seek to make highly profitable exits through
strategic acquirers and financial institutions
Deal Flow Chart
Deal Flow
Does the company have significant revenues,
significant product, expanding market. Define
potential improvements
Develop turnaround plan Phase 1
Financial examination of transaction
Due Diligence
Turnaround plan Phase 2
Purchase control
Implement turn-around plan. Stabilize, grow,
strategic partnerships
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Exit
FITE - Structure
General Partner
LP
LP
FITE Limited Partnership
LP
Target Company
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FIMI
Ron Zuckerman
Roy Machnes
The Management Team
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Managing Partner – Roy Machnes
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Associate – Ami Boehm
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Investment Committee: Ishay Davidi, Ron Zuckerman,
Roy Machnes, Dr. Amnon Goldschmidt (Israel Discount
Bank), Robert Joyal (US investors representative) and
Avraham Bigger (LP, independent member).
Deal Flow
The experience and track record of the management team and
General Partner in entrepreneurship, operational management,
public offerings, and investment activities promises an
extensive deal-flow from numerous sources:
Banks
Investment Companies
Managers
Consultants
Lawyers
Accountants
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FITE – Financing
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Amount raised – $130,000,000
Minimum Investment - $5 million.
Terms – 5 years to invest, 7 years full terms, two
successive one year extension options
Diversification – maximum of 20% of commitments
in any single company.
Financing Completed – July 2004.
Thank you
For further information contact:
FITE GP (2004) Ltd.
3 Daniel Frisch Street, Tel Aviv 64731, Israel.
Tel: +972-3-608 6838
Fax: +972-3-608 6839
Email: [email protected]