Hamilton Lane to invest $100m in Israel: The firm has received $100 million from the New York State Common Retirement Fund to build a portfolio of inv

BYLINE: Batya Feldman, Globes, Tel Aviv, Israel

May 9--US private equity management company Hamilton Lane Advisors LLC has opened an office in Israel with a number of deals. Sources inform "Globes" that the company has received $100 million from the New York State Common Retirement Fund (NYSCRF) to build a portfolio of investments in Israeli venture capital. This will be the largest investment ever in Israeli venture capital. Hamilton Lane has already invested in Vitalife Life Sciences Venture's second fund, which is now in the advanced stages of its financing round.

Hamilton Lane also handled a second investment in the Vitalife II Fund on behalf of Massachusetts Pension Reserves Investment Management Board (Mass PRIM), which is making its first investment in Israeli venture capital.

The sources added that a number of Israeli institutional customers have awarded Hamilton Lane a mandate to build private equity portfolios and make overseas investments on their behalf. The company has received commitments of more than $100 million from Israeli institutions.

Hamilton Lane is the world's largest advisor, investment manager, and strategist for private equity institutional investors. Founded in 1991, the company manages accounts with either full or brief discretion. The company manages $70 billion for some of the world's largest investment institutions.

"Globes": What is your mission in Israel?

Hamilton Lane Israel director Limor Beker: "To deploy the global market for large investment institutions, present them the advantages of building an international private equity portfolio, build for them an investment strategy, and give them access to leading funds in the field. Investment institutions in Israel and other countries have had painful experiences with inconsistent conduct in the field, which caused losses."

How do you view the Israeli market?

"In general, I think that there's a connection between the situation of funds operating in Israel and the involvement of investment institutions. In Israel, there's a situation in which venture capital funds mostly raised capital outside Israel. There are investment institutions who invested, but they are few. Israeli investment institutions invested very small amounts in the domestic venture capital market because they allocated very little to the sector. International investors are active in Israel because they allocate much more to the sector globally."

Does this explain the capital inflow into Israel?

"Not only. Israel had some good harvests before the bubble. The success of the domestic venture capital industry attracted global investors."

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