Sweden’s EQT invests in Israeli technology from a new fund of 2.2 billion euros
Swedish investment company EQT (Stockholm: EQT) has announced that it will invest a significant portion of its recently closed EUR 2.2 billion EQT Growth fund in Israeli companies. EQT has an investment portfolio of 77 billion euros. Its announcement says the fund will take an “active approach to unleash sustainable growth in Europe and Israel’s leading technology companies.”
It is not yet clear how much of the fund will be invested in Israel. Each individual investment will be 50-200 million euros, so even if only a few Israeli companies are on the list, the amount flowing to Israel will be significant. EQT says that investments in Israeli companies will also aim to foster cooperation with portfolio companies in Europe. Investors in the fund, which exceeded its €2 billion target, include pension funds, sovereign wealth funds, asset managers and high-net-worth individuals from across Europe, Asia, North America and the Middle East.
A delegation from EQT recently visited Israel and spent two weeks researching local companies and meeting seniors from Israel’s technology sector. So far, EQT’s only investment in Israel has been a $100 million investment in cybersecurity firm CYE. That step at least indicates a possible direction for future investment.
Shannee Braun, a director at EQT, told “Globes” that her company saw Israel as one of the most attractive markets for the companies’ growth potential and their value, and therefore looked for investment opportunities in the country. “Israel has a growing number of companies of a size that fits the amount of investment and the framework that we seek. We are primarily targeting fast-growing companies.”
Braun says Israeli tech companies accounted for 11% of total investment deals in Europe last year, far more than the country’s relative size would justify. She says this indicates outstanding innovation and the enormous potential for the future.
What specific areas does EQT want to invest in?
“Fintech and of course cyber security are among the most interesting areas – these are areas where Israel is one of the best research and development centers in the world.”
From the company’s announcement, it can be understood that medical and environmental technology are also areas of interest for investment.
Published by Globes, Israel business news – en.globes.co.il – on September 12, 2022.
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