PSAGOT, Israel’s largest investment house, confirmed yesterday that it has been bought by private equity firm, Apax Partners.
The deal involves Apax buying a 76 per cent share of the firm from shareholders led by York Capital Management.
The deal is still subject to regulatory approval, according to a statement from Psagot to the Tel Aviv Stock Exchange.
York is expected to make $263m (£162m) capital gain from the sale.
Apax is hoping to break into the high savings culture of Israel’s total population of 7.5m. It believes Psagot’s managed savings market will grow strongly in the future.
Zehavit Cohen, head of Apax’s Israeli office, said: “This is a company that we have been tracking for some time, and we are delighted to have the opportunity to support a very strong management team in its next phase of growth.”
York, an 18-year-old hedge fund managing over $3bn in assets, took a 100 per cent stake of Psagot over three years ago from Bank Leumi for just under $300m.