Disneys launch $125 million fund to invest in Israel

Shamrock Capital Advisors, the California-based investment arm of the Roy Disney family, said yesterday that it is launching a new $125 million fund to invest in Israel over a four-year period.

Investors in the Shamrock Israel Growth Fund will include American and Israeli pension funds, insurance companies and commercial banks. Some of the fund's partners might co-invest additional amounts that would bring the final investment figure higher, Michael Geiger, a managing director of Shamrock, told reporters at a press conference.

The press conference was attended by Shamrock's top officials, including Roy Disney's daughter Abigail, who is Shamrock's vice chairman; her sister, Susan Disney Lord; and Shamrock President Stanley Gold. All were in Israel this week for the group's annual meeting.

The fund plans to make investments of $5 million to $20 million, with emphasis on export-oriented middle-market businesses that require capital for international expansion or acquisitions. It is hoping to earn its investors an annual return of some 30 percent.

Over the past 18 years, Shamrock has invested some $500 million in Israel - about one quarter of its total investments. "We hope the amount will be equal or even greater over the next 18 years," Gold said.

"My family has a history of investing in Israel, and the fact that this meeting is taking place here in Israel ... attests to the group's strong deep commitment to Israel," added Abigail Disney.

Gold said that one field of particular interest to Shamrock is Israel's defense industry, which is undergoing consolidation. The government is planning to begin privatizing its defense companies soon, and Shamrock is considering joining one of the consortia expected to bid for Israel Military Industries, he said.

Shamrock is also interested in the Oil Refineries, once the government's plan to split the company in two and privatize both parts gets under way, said Shamrock managing director Robert Moskowitz. He added that the fund could even exceed its $20 million investment ceiling if it decides to join a bidding consortium for the refineries.

Abigail Disney said that her particular field of interest is media companies. "Apparently, it's genetic," she smiled.

The only area that the fund will definitely exclude, said Geiger, is real estate.

Although Shamrock's recent investments in Israel have all been in small companies, in the past it invested in several major firms, including the holding company Koor Industries, Matav Cable Systems Media, the cellular telephone operator Pelephone, Dor Energy and defense communications company Tadiran Communications. Moskowitz said that Tadiran was the fund's most successful deal: Shamrock invested $15 million in the company, and left with $180 million.

Until now, Shamrock's investments in Israel have been evenly divided between domestic- and export-oriented companies. But in the future, Moskowitz said, this is likely to shift to about 75 percent export-oriented.

Shamrock officials said that about 10 to 20 percent of the fund's portfolio has traditionally been in Israel, with the rest concentrated in the United States, and this will likely continue.

According to Gold, Shamrock is currently in the process of transferring control to the younger generation - namely, the two Disney sisters and their brother, Tom, who was also supposed to be in Israel this week, but had to cancel at the last minute. Their father, Roy, who is the nephew and heir of Walt Disney Co.'s founder, currently serves as chairman of Shamrock.

	Shamrock president Stanley Gold, left, with vice chair Abigail Disney, center, and Susan Disney Lord. (Ofer Vakhnin)
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