Harel enters the world of hedge funds: The major deal is revealed
The investment house of the Harel Group is expanding into the alternative sector and is acquiring 50.1% of the shares of a hedge fund management company that manages hundreds of millions of shekels. Who are the former managers behind the deal?
Harel Finance, the investment house of the Harel Group, is expanding its activity in the field of alternative investments and is moving toward acquiring control of the hedge fund management company Tulip Capital. As part of the deal, Harel Finance will acquire 50.1% of the company's shares, with the completion of the move subject to receiving the required regulatory approvals.
Tulip Capital currently manages assets totaling approximately 350 million shekels through the veteran hedge fund Tulip Israel. The existing investment team is expected to continue leading the fund's activity even after the deal, while Harel Finance will provide the company with a framework that includes operations, risk management, research, and access to investment opportunities.
Tulip is owned by Micha Malka, who previously served as CEO of the portfolio management company of Harel Finance, Baruch Tsibin, formerly of Harel's investment division, and Moshe Gabay, who has more than 30 years of experience in the capital market.
Tulip's investment strategy focuses on public Israeli companies and active investment management. Among other things, the company operates using a long-short strategy, looks for pricing distortions in the market, and acts around corporate events such as mergers and acquisitions. In addition, the fund takes an active position as a shareholder in the companies in which it invests.
The deal comes after a collaboration that already exists between Harel Finance and Tulip. In 2023, after the Securities Authority approved the establishment of hedge funds in trust, the entities began working together in the field. Funds of this type differ from traditional hedge funds in that they are also open to the general public and offer monthly liquidity.
Tulip currently serves as an advisor to the hedge fund in trust managed by Harel. The fund manages about 1.2 billion shekels and is considered the largest in Israel in this field.
Michael Benvolgi, CEO of Harel Finance, said:
"Acquiring control of Tulip is an important pillar in the growth strategy of Harel Finance and in expanding the supply of advanced investment solutions for qualified investors."
According to him, the company knows the Tulip team and its professional capabilities well, and the joining of forces is expected to allow for the continued development of the activity.
Micha Malka, CEO of Tulip Capital, noted:
"The difference between standard investment management and excellent investment management lies in the ability not only to react to stock price fluctuations, but also to create an effective professional and organizational framework."
According to him, the existing collaboration with Harel Finance made it a natural partner for Tulip.
The move illustrates the growing competition between the large investment houses in Israel in the field of alternative investments. Alongside the expansion of the variety of products, the connection between large entities and specialized investment managers allows for offering strategies that were previously identified mainly with qualified investors, and at the same time expanding the public's access to products based on active investment management.
