The Arbel Funds are Private Debt & Equity funds focusing on mid-sized Israeli private companies and asset-backed financing. The Arbel Funds invest primarily through direct private credit facilities, providing flexible and tailored-made financing solutions where Israeli Institutional Investors and Banks are absent. In its first two Funds, Arbel has raised in excess of 2.5 billion NIS and closed over 50 transactions (circa 20% of which are follow on investment with repeat borrowers).
The Arbel team brings decades of cumulative professional experience in leading, underwriting, executing and managing the type of tailor-made transactions for our corporate clients.
Arbel has successfully transacted with clients in various market environments, providing solutions under tight deal schedules, and dealt with both macro crisis situations and transaction specific challenges and defaults. In 2024, the 8th year of its operations, Arbel enjoys a strong reputation as one of Israel’s largest and prominent debt funds and is recognized as a leader by both investors and potential clients in its target market. Arbel’s team has a strong network of connections and relationships in the Israeli market, enabling Arbel to tailor bespoke transactions, actively monitor and manage them over time, and support our clients thru challenges even when financial, macro conditions or specific business conditions change.
Arbel deploys funds primarily through debt investments, although a more limited capital pool is available for equity investments. Arbel operates across the whole capital structure using instruments on the entire debt-equity spectrum, from senior and mezzanine loans, preferred and convertible shares as well as making both debt and equity investments at the same transaction.
Arbel seeks double digit total returns, which range from pure interest return in shorter bridge loans, to lower interest rate credit instruments that are combined with a wide range of equity “kickers” or other success-based payouts, specifically tailored to the transaction and client.
While the investment process varies based on each transaction specifics, historically Arbel tended to achieve a signed Term Sheet in around 45 days.
When dealing with Arbel you would be facing an experienced as well as creative team, which is unbound by rigid banking or insurance regulations or stiff internal policy hurdles.
As we are driven purely by economics, we are often able to develop suitable, bespoke solutions, even in cases, business circumstances and transaction types, that banks and institutional investors avoid. Each of Arbel’s transactions is unique, specifically tailored to the situation and client.
At times, we provide more than just “plain” leverage, offering non-dilutive capital to growing companies and controlling shareholders. We realize that providing financing is not the end, but rather the beginning of the process. Our clients leverage our experience and network to support business development and success. And, when circumstances change, especially in time of distress or transitional business opportunities, Arbel is willing and able to work with you in amending the transaction structure, potentially providing further capital and generally adapting to the changing circumstances, as economically justifiable. The fact that more than 10 of the 50 transactions Arbel completed originate from repeat business speaks for itself.
