Pengana Capital is partnering with an Israeli fund manager to launch a new tech-focused fund that invests in 30 stocks for local wholesale investors.
The Pengana Alpha Israel Fund is managed by Alpha LTI, an equities boutique founded in 2005 that currently manages about $350 million.
It is a long-only fund with typical holdings in mature small or mid cap companies, including pre-IPO raises.
Companies can be listed on either the Tel Aviv Stock Exchange or ex-Israel exchanges such as NASDAQ-listed companies.
Israel has over 450 listed companies, about 64 of which are cross-listed abroad. More than 27 multinational companies have established research and development facilities via Israel, including Google, Alibaba and Siemens, according to Pengana.
Minimum investment size is $250,000. The fees are 1.5% per year in management fees, and 20% above hurdle of 4% with a high watermark.
Pengana is offering two share classes: one hedged to AUD and the other hedged to USD.
“I think people have been aware for a number of years now that Israel is good for venture capital investments, but not on the opportunity to invest in listed equities,” Pengana Capital chief executive Russel Pillemer told Financial Standard.
Read the article by Kanika Sood in Financial Standard.