The firm plans to initiate fund raising for its next structured secondaries fund in the coming months.
Hong Kong merchant bank Ion Pacific’s Israeli subsidiary IL Pacific has raised $30 million for its debut structured secondaries fund. The fund is focusing on acquiring secondary positions in technology, venture and growth capital funds, as well as direct stakes in portfolio companies.
The fund, Stonecutter I, which is already 50% deployed, follows investments in Israel totalling $45 million made by IL Pacific’s overseas parent, Ion Pacific. These include two structured secondary investments in Israeli venture capital funds and an investment in fintech company Credorax Inc.
Stonecutter I aims to make available creative liquidity solutions to funds, GPs, investors and entrepreneurs across Israel and Asia, and leverages Ion Pacific’s expertise in driving technology-focused deals that bridge Asia, Israel and the US. The remainder of the fund is earmarked for additional investments in Israel and Asia with a focus on venture capital funds, but also secondary deals in specific technology companies.
IL Pacific head Eran Zack said, “The Israeli market is known for technological excellence and innovation, yet there is significant unmet demand for liquidity in the tech and innovation ecosystem. In line with our firm’s ethos of fostering the innovation economy, our structured secondary product will provide a necessary injection of liquidity to the local tech ecosystem.”
“As a company which was founded in Hong Kong with its main activity centre in the Asian market, we have a unique perspective on market sentiment in China and Asia,” Zack added. “Global geopolitical dynamics continue to enhance Israel’s appeal as an investment location for Asian and Chinese capital, over traditional investment destinations such as the US. Accordingly, we have seen a significant uptick in interest from Chinese investors seeking exposure to Israeli tech companies. Stonecutter I is an excellent way for Asian investors to gain access to numerous Israeli companies.”
IL Pacific is currently expanding its team and relocating its headquarters to a new location on Tel Aviv’s Rothschild Boulevard.
Ion Pacific is a merchant bank founded in 2015 by Itamar Har-Even and Michael Joseph, who had earlier built and headed the investment banking group at Reorient Group, which was sold to Jack Ma from Alibaba.
This article is also published in Globes Israel’s Business Arena