Magellan Private Equity

Description

Investments in privately owned companies engaged in the manufacturing and export industry in Israel. The company identifies investment opportunities in an unsaturated market, thereby providing opportunities and allowing investors to leverage the relative advantage of our close proximity and active involvement in the companies
Magellan raises capital from a range of entities, from financial companies to private investors who are interested in partnerships with companies which have significant upside potential or attractive operating cash flows.

Investment Strategy

Investments will be made in companies by utilizing a LBO (Leveraged Buy Out) strategy.

In this strategy, Magellan invests in companies aquiring a low rate of equity, and then raises finance based on the stable figures of the company’s balance sheet. The fund leverages the acquired company’s financial structure in order to raise external capital so it can pay the price tag for the purchase.

An additional strategy employed by the partnership is a “Turnaround Strategy”, whereby companies suffering liquidity issues, poor management and disputes among controlling shareholders, operating difficulties, etc. are identified. In these cases the company is taken over, after which operations are improved and profits accumulated.

The most important criteria involves identifying companies whose businesses are based on the global markets. Investment in export orientated companies.

An additional criteria involves investing in niche companies, as opposed to companies specializing in mass production and exposed to competition from cheaper countries.

Discover the Added Value

  • Management team: Magellan’s team has proven ability over many years in successfully leading companies of this kind. The team holds a combination of expertise in the banking and industrial sectors together with the ability to realize assets in both the private and publicly traded sectors, with an in-depth understanding of the relevant industries.
  • Close proximity to the business and active involvement: Identifying the inherent and unrealized potential of target companies.
  • Acquisition routes: Ability to structure acquisitions of companies and thereby to maximizing their economic potential.
  • Investment in Israeli industry: The private market in Israel embodies a great deal of potential, as proven by its results in recent years
  • Limited capital raising: Approaching an unsaturated market with many unrealized opportunities.