Yakir Gabay’s Yellowstone Seeks $400 Million in Pre-IPO Round for US Real Estate
Real estate firm Yellowstone, founded by Yakir Gabay, is raising $400 million in a pre-IPO private equity round to finance US acquisitions and Manhattan conversions.
Yellowstone, founded by real estate tycoon Yakir Gabay, is currently raising approximately $400 million in a private equity round as part of a pre-IPO process to fund US real estate opportunities. Gabay, founder and major shareholder of German firm Aroundtown, established a partnership in 2019 under Yellowstone with Israeli institutional investors Clal Insurance (28.4%), Phoenix (27.8%), and Mor (16.2%).
Partnership Structure and Expansion
Yellowstone itself holds 27.6% of the partnership, manages operations, and acts as its controlling shareholder. The three institutional giants, alongside Yellowstone, will inject their respective shares into the fundraising round to maintain their holdings. They may be joined by Harel Insurance and another institutional entity, pumping hundreds of millions of shekels into the venture. The partnership boasts $853.7 million in equity, with real estate investments valued at roughly $1 billion (about 2.87 billion shekels).
Yellowstone is targeting US acquisitions with a pre-IPO round valuing the firm at over $1 billion, focusing on converting Manhattan office buildings into residential spaces.
Manhattan Conversions and Financials
Following a 600 million shekel bond issuance in Tel Aviv last June carrying an annual interest rate of 7.5%, Yellowstone plans to go public with its subsidiary within the coming year. The firm specializes in acquiring distressed or underpriced commercial properties to convert them into residential apartments, capitalising on New York City's regulatory incentives for office-to-residential transformations. Bank Hapoalim serves as the primary Israeli financier for the group.
