Markstone Closes New Private Equity Fund at Record $800 Mil.

A few days after First Israel Mezzanine Investors advised it had raised $300 million for a sequel fund, Markstone Capital Group announced it had closed $800 million financing for its first fund. The amount is a record for any Israeli investment fund, whether in private equity or venture capital.

Since Markstone will also be financing its acquisitions of mature companies with bank loans, it has the capacity to spend billions of shekels on buying companies.

Then there is the FITE fund, which specializes in buying troubled companies, turning them around and selling them for profit. It raised $140 million, while Itzhak Swary and Zvi Yochman raised $120 million for a similar fund.

And there may be more competition around the corner. There have been reports that businessman Avi Tyomkin, who has private equity operations outside Israel, is about to raise hundreds of millions of dollars to invest in Israel jointly with a major foreign bank. Former treasury director general Ohad Marani is also reportedly developing plans to get into private equity.