Amid stock market boom: Pasternak-Shoham to attempt Tel Aviv IPO at 300 million shekel valuation
The investment house controlled by Eran Pasternak and Shai Shoham will attempt to leverage a two-fold revenue growth over the past year to issue its shares. Last year, the firm benefited from high profitability in its trust-based hedge fund activities.
Against the backdrop of the boom in the markets, another investment house is on its way to the Tel Aviv Stock Exchange. The portfolio management and mutual fund company Pasternak-Shoham has filed a prospectus ahead of an initial public offering (IPO) of its shares, at an estimated pre-money valuation of 300 million shekels. As part of the move, led by IBI Underwriting, the company will raise about 75 million shekels.
Pasternak-Shoham has two main areas of activity: investment portfolio management and mutual funds. In the fund sector, which accounts for about 82% of revenue, it manages mutual funds using a hosting model, totaling about 6 billion shekels. Within the investment management sector, it manages securities portfolios and financial assets for clients worth about 3.3 billion shekels.
The company ended 2025 with revenue of about 56 million shekels, a growth of about 107% compared to 2024. The jump in revenue was due to an increase in the volume of activity. This was also bolstered by an addition of 7 million shekels from success fees charged by the company's trust-based hedge funds, which are derived from performance. Bottom line, net profit jumped by about 160% to stand at approximately 26.9 million shekels.
Although trust-based hedge funds account for only 5% of the volume of assets managed in the fund activity, the revenue from them accounts for almost 20%. This is because in trust-based hedge funds, investment houses charge, alongside management fees, success fees derived from performance (usually 20% of the profit).
Meanwhile, according to the company's estimates, the group's revenue in the first half of the year will stand at 30-31 million shekels, while net profit will be 15.5-16.5 million shekels, excluding potential success fees in the hedge fund sector.
Purchasing an insurance agency
The controlling shareholders are the two founders: Eran Pasternak, who serves as chairman (60% of the capital), and Shai Shoham, who serves as CEO (40%). They founded the investment house in 2010 after holding senior positions in the capital market, including at the investment house Tamir Fishman.
The proceeds from the IPO are expected to be used by Pasternak-Shoham to purchase 50% of an insurance agency to enter the financial sector (provident funds, training funds, pensions, and life insurance). The company notes that such a move will create synergies and provide activity that does not have a tight correlation with capital market activity, serving as a natural hedge for existing operations.
Also, a few months ago, Pasternak-Shoham signed an investment agreement with the financial startup Money Flow, which developed a technological system for mortgage consultants.
Will they replicate the success of Meitav Dash?
If the Pasternak-Shoham IPO is completed, this will be the first time an investment house has joined the stock exchange in a decade. This follows the 2017 IPO of Meitav Dash at a valuation of 240 million shekels.
Pasternak-Shoham hopes to replicate the success of Meitav Dash, which has become one of the largest investment houses in Israel. Against the backdrop of the market boom, Meitav Dash's stock has jumped over 500% in the last three years, bringing it to a valuation of 2.94 billion shekels.
