Alternative Investments

Alternative investments are intended exclusively for Accredited Investors only.

Alternative investments offer an alternative to traditional capital market investment tracks. They encompass a wide range of options, such as hedge funds, real estate, infrastructure, peer-to-peer lending and more. These investments are designed to diversify portfolios, reduce risks and generate potential for high returns.

Alternative investments spread risks, as they are not directly tied to the stock market, offering protection against market volatility. In addition, they provide the potential for high returns compared to traditional investments, particularly during periods of low interest rates and market fluctuations. The variety of options allows investors to tailor their portfolios to their specific needs and goals.

Alternative Investments - Key Products

Valoo Fund

A secondary fund managed by Valoo, which directly acquires shares from employees and shareholders in late-stage private technology companies.

The fund specializes in identifying, pricing and executing secondary transactions of target companies.

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Justice

The Justice Group is a leading Israeli company in litigation finance investments. Meitav Investment House has been, Since 2022, a partner and controlling shareholder in Justice.

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Trio Fund

Trio Fund was established in 2010 and is among the veteran hedge funds operating in Israel.

The fund operates in partnership with Meitav Alternative, the alternative investments arm of Meitav Investment House, as part of a joint activity providing investment solutions to qualified private and institutional investors.

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Emerald 4 (Lotus)

Emerald is managed by Lotus Ireland. Loans are secured by first-lien collateral on real estate properties (lots for construction, residential homes and income-generating properties) and are provided with relatively low leverage and for short terms of up to 24 months.

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Who Is It For?

Alternative Investments are not liquid and are suitable only for Accredited Investors. They are designed for long-term investors with substantial means who seek portfolio diversification potential for high returns. The investment is made with discretionary funds, with no expectation of liquidity during the investment period.

Pros and Cons

Pros:

Risk diversification
Potential for high returns
Opportunity to receive periodic dividends in some investments

Cons:

No liquidity and no tradability, making it difficult to sell or realize the investment quickly
These investments are considered riskier than traditional investments
Subject to regulatory and legal restrictions

Main Areas

Below is a breakdown of the main areas of alternative investments currently available to investors:

Real Estate-Backed Loans Abroad

Funds investing in real estate properties abroad, focusing on regions or countries that may yield high returns for investors. At Meitav, you can invest in two funds in this field: Emerald Fund and Reigo Fund.

Investment in Startups

Investing in startups with the goal of selling holdings at a profit at a later stage or receiving dividends from the companies.

For example, Secondary Fund, managed by Valoo, acquires shares directly from employees and shareholders in late-stage private technology companies.

Secondary specializes in identifying, pricing and executing secondary transactions of target companies.

Strategies and Hedge Funds

Hedge funds aim to generate profits in the capital market while managing risks. Meitav Portfolio Management offers personalized portfolio management using these strategies for Accredited Investor clients and IRA clients, employing diverse strategies such as long, short, investments in Israeli stocks, IPOs, event-driven and distressed bond investments, aiming to achieve positive returns with low correlation to the markets.

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Structured Products

Investments in structured products are available through Meitav. [Click here for more information]

Investment in Content

The domestic content industry is experiencing unprecedented growth as the world gradually emerges from the COVID-19 crisis, evidenced by the high prices at which films and TV series, including Israeli ones, are sold to platforms like Netflix.

The Fauda Israeli TV series, it seems, was just the harbinger of the wave.

The New Legend Fund, managed by Meitav, specializes in providing debt to producers of TV series and films, secured by contracts with distributors, content rights or tax incentives in various countries.

New Legend and Meitav identify relevant films and series for investment in the US.

The loans are provided for periods of up to one and a half years, aiming to minimize risks of budget overruns that could prevent the completion of film or series production.

Alternative Investment products are intended for Accredited Investors, as defined in the Securities Law (except for Meitav’s hedge fund strategies within IRA).

The information provided in this article is general and concise, referring only to the terms and operations of the funds and other products. The information is not binding and should not be relied upon in any way. Investments in funds and/or other alternativ