The market is growing but local limitations are
hampering its companies’ ability to provide
financial assistance for their own
During the past two decades, the Israeli economy has
been increasingly opening up to the global markets. Combined
with the rise of the Israeli hi-tech sector, this has resulted
in greater economic interest in the country.
As part of this trend, international sponsors and lenders
have been taking an ever-increasing role in the development of
a local leveraged buyout (LBO) market. A few examples include
the acquisition by Apex Partners of a controlling interest in
Bezeq (previously Israel's national telecommunications
operator), Tnuva (Israel's largest food manufacturer) and
Psagot (Israel's largest investment house), as well as the
recent acquisition by BC Partners of a controlling interest in
Such sponsors and lenders face some challenges, but there
are available solutions.
Avoiding classification as direct financial assistance The
main legal challenge in...