Israel-based Vintage Ventures has closed its maiden secondaries fund on $64m, exceeding its original target of $60m. Vintage Ventures was founded by Alan Feld, a former general partner at Israel Seed Ventures and Vertex Israel and Shlomo and Aharon Dovrat, founders of the private equity firm The Dovrat Group.
Marketing for the fund started in September 2002 and the fund had a first closing in June 2003 and a final close in March. Investors in the fund are primarily non-Israeli sources including corporations, fund-of-funds and family trusts.
As a secondary fund with a specific focus in a market that’s not overly competitive Feld is optimistic about investment opportunities. According to Feld there is only one other secondary player focused on Israel which is the Harvest Fund, an affiliate of Evergeen Partners.
There are multiple sources of deal flow, says Feld such as venture funds winding down operations and wanting to dispose of portfolios and strategic investments made by large corporations where venture capital is no longer in their strategic interest.
He adds that many players have decided to pare down their VC exposure in Israel and many have been paring down their technology exposure. Others are deciding to focus only on US markets and are disengaging from non-US investments.
The fund will focus mainly on acquiring limited partnership interests in Israel-related venture capital funds and direct interests in Israel-related technology companies. Sellers typically include banks and insurance companies; pension funds; fund-of-funds, individual investors; strategic corporate investors and venture fund general partners.
Feld is managing partner of Vintage Ventures. Previously, he was a general partner at Israel Seed Partners (ISP), a $258m venture capital group investing in Israel-related seed and early stage companies. Prior to ISP, Alan was a partner in Vertex Management III Ltd, the $30m Israeli venture arm of the corporate venture group, the Vertex Group of Singapore Technologies.