Ishay Davidi's First Israel Mezzanine Investors (FIMI) fund, considered the largest in Israel, is expected to invest $300 million in seven to 10 Israeli companies in 2008, Davidi told TheMarker in an interview.

"Most of the deals will be purchasing control," he said.

Davidi said FIMI would sell fewer firms than in 2007, probably three. But he said this was hard to predict because transactions depend on market conditions. In 2007, FIMI reported over 40 percent profits for investors.

Davidi added that he expected markets to decline in 2008: "There is no crystal ball in my hands, but if I have to evaluate what the markets will do next year, I think that they will go down."

FIMI recently completed raising $500 million for its fourth fund. All of its veteran investors put up money for the new fund, which raised cash at a record pace, needing only three and a half months.

David was forced to turn down over 25 new investors and say no to over $200 million of investors' cash.

"We could have raised over $1 billion, but we think that half a billion is more appropriate for our work plan for the next three years. This is the optimal amount at this stage," Davidi said.