Altshuler Shaham CEO Invests NIS 180M for Control Amid Market Shift
Altshuler Shaham CEO Yair Levinshtein is investing 180 million shekels to take control of the firm, comparing the move to his 2009 post-crisis strategy. Meanwhile, Profit agency CEO Assaf Banai announced plans to weigh entering product manufacturing for long-term savings.
Yair Levinshtein, controlling shareholder and CEO of Altshuler Shaham, sees a prime market opportunity reminiscent of 2009, the year following the global financial crisis. At the time, he increased his holdings in the investment house when it managed 8 billion shekels. Today, Levinshtein is investing roughly 180 million shekels of his own capital to take control of the investment house he helped found.
Levinshtein revealed these insights during a discussion with Globes News Editor Bar Lavi at the 'Seeing Beyond the Trend' conference, held in partnership with Altshuler Finance and alongside Assaf Banai, founder and CEO of the Profit insurance agency. Reflecting on his deep familiarity with the firm, Levinshtein noted, 'There is not a single stone in Altshuler Shaham that I do not know.'
Outlining his strategy, Levinshtein pointed to three core pillars driving his investment. First is the broader market potential: the public's asset portfolio stands at 7.6 trillion shekels, with approximately 3.5 trillion shekels allocated to long-term savings, a figure projected to exceed 15 trillion shekels. He emphasized the ongoing convergence between banks, insurance companies, institutional bodies, and investment houses. Second is the company's robust operational foundation, encompassing two million clients, a strengthened investment division led by Leah Perminger, and growing alternative investment and non-bank credit arms backed by new partner WeSure. Third is his personal expertise spanning over three decades in the industry.
Meanwhile, Assaf Banai announced that the Profit insurance agency is actively weighing a strategic expansion into manufacturing long-term savings products by managing its own provident funds and advanced training funds. Banai noted that while no formal application has been filed yet, the move is under serious evaluation. He highlighted Profit's dominant distribution power, noting that private investment houses have funneled 30% to 40% of their pension inflows through the agency at roughly half the commission rates charged by traditional insurance firms.
Banai also underscored the explosive growth of Profit's hedge fund operations, which currently manage around 700 million shekels and are projected to reach 1 billion shekels by the end of the year. Led by Kfir Hasin, former chief investment officer of Harel Insurance & Finance, the fund caters to a growing base of qualified investors in Israel. Concluding the panel, both executives agreed that the boundaries between traditional banking and non-bank financial institutions will continue to blur, paving the way for increased competition and innovation in the Israeli financial sector.
