Centerbridge Partners and Gallatin Point Have Successfully Executed Agreements for the Sale of up to 21.5% of Phoenix Holdings to Investment Firms Such as Affinity Partners, Delek Group and Other Leading International Institutional Investors
16 Julio 2024 - 2:34AM
Business Wire
International and Israeli investors have agreed to acquire up to
21.5% of Phoenix Holdings (TLV: PHOE), a leading Israeli financial
group, from Centerbridge Partners and Gallatin Point.
The investments involved an agreement for the sale of 4.95% of
Phoenix shares to Affinity Partners, while an additional ~6.5% of
the shares will be executed in off-market blocks to various
international institutional investors, including Lazard Asset
Management. Affinity Partners has further committed to acquiring an
additional 4.95% of Phoenix subject to receipt of regulatory
approval. All transactions were at a price of NIS 37.50 per
share.
Concurrently, various arrangements between the funds and Delek
are being closed out. This includes paying off a loan agreement
stemming from the 2019 acquisition of the controlling stake from
Delek. As part of this process, Delek will also acquire a 4.99%
stake in Phoenix at the agreed rate of NIS 37.50 per share.
Centerbridge and Gallatin Point, who acquired control of Phoenix
in 2019, will remain with approximately 10.0% after effectuating
these transactions.
For the past 70 years Phoenix insurance has positioned itself as
one of the most trusted brands in financial services in Israel,
currently with over $130 billion USD under management. The firms
were impressed with the Phoenix’s reach within Israel, servicing
half of the adult Israeli population, and delivering 15% ROE and
19% assets under management compound annual growth over the past 5
years. As Israel continues to grow in both population and GDP, with
excellent management and investment partners, Phoenix will remain
as one of the leading Israeli financial service companies.
Phoenix will continue under the current management, led by Eyal
Ben Simon as CEO, Benny Gabbay as Chairman and other leading
international and Israeli directors. The funds, in accordance with
their holding permit, will transition their affiliated directors
off the board in the coming months. Ben Simon and Gabbay have
recently personally invested in the Phoenix and they, along with
other management team members, expect to increase their holdings in
the future.
Ben Langworthy (Centerbridge) and Lee Sachs (Gallatin): “The
management team and employees of the Phoenix are among the best in
the industry. We have been proud to work alongside them as they
transformed Phoenix into one of the nation’s leading financial
institutions. We are excited that these transactions will further
diversify the shareholder base of Phoenix. These transactions
represent a significant vote of confidence in Phoenix and Israel,
and the company’s excellent work over the past several years. We
look forward to continuing to support the management team as they
lead Phoenix to even greater heights.”
Jared Kushner (Affinity): “We are excited to become significant
shareholders in Phoenix. Affinity is long-term bullish on Israel
because it is one of the fastest growing countries in the OECD,
both in terms of population and GDP growth. We look forward to
working closely with the company as it continues its journey toward
becoming a globally recognized financial services provider.”
Eyal Ben Simon and Benny Gabbay (Phoenix): “Today signifies a
significant milestone for Phoenix. Alongside Centerbridge and
Gallatin, we have laid the strategic groundwork that has shaped
Phoenix into a leading financial group in Israel, attracting
interest from top international investors. We look forward to
continuing to develop and grow the company, bringing it to new
heights for the benefit of all our shareholders.”
Jefferies acted as sole global coordinator, bookrunner and
financial advisor to Centerbridge and Gallatin Point on the
transaction. Fischer (FBC & Co.) and White & Case LLP acted
as legal counsel to the sellers. Gornitzky and McDermott Will &
Emery acted as legal counsel to Affinity. Mizrahi Tefahot Bank Ltd.
acted as lender to Centerbridge and Gallatin in their original
share purchase as well as agent in connection with this
transaction.
About Phoenix Holdings
Phoenix Holdings is a leading Israel-based financial group
traded on the Tel Aviv Stock Exchange (TLV:PHOE). With roughly $130
billion in assets under management, Phoenix manages financial
activities including asset management, insurance, distribution, and
credit. Phoenix has demonstrated strong growth, earnings, and
resilience across the cycle, and serves a significant portion of
Israeli households with a broad set of financial solutions.
About Centerbridge
Centerbridge Partners, L.P. is a private investment management
firm employing a flexible approach across investment disciplines —
Private Equity, Private Credit and Real Estate — in an effort to
develop the most attractive opportunities for our investors. The
Firm was founded in 2005 and, as of December 31, 2023, has
approximately $38 billion in capital under management with offices
in New York and London. Centerbridge is dedicated to partnering
with world-class management teams across targeted industry sectors
and geographies. For more information, please visit
www.centerbridge.com.
About Gallatin Point
Gallatin Point Capital LLC is a private investment firm with a
primary focus on making opportunistic investments in financial
institutions, services, and assets. Gallatin Point aims to form
highly collaborative partnerships with its investors and with
management teams of its portfolio companies, seeking to combine the
right capital with the right managerial competencies in order to
maximize the outcome for all stakeholders. More information about
Gallatin Point can be found at www.gallatinpoint.com.
About Affinity Partners
Affinity Partners is a global investment company headquartered
in Miami, managing assets of over $3B USD. Affinity Partners
invests globally in leading companies with first class management
teams and strong prospects for long term growth.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240716054367/en/
Rose & Company Tel: +1 212-517-0810 email@roseandco.com