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A New Approach to Investing in Private Technology Companies - Amir Guttman news release

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Interview with: Dr Amir Guttman, Founder & Managing Partner, High-Tech Tracking Fund (HTF)

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A New Approach to Investing in Private Technology Companies - Amir Guttman news release

  1. 1. Interview with: Dr Amir Guttman, Founder & Managing Partner, High- Tech Tracking Fund (HTF) “The Israeli private tech market pro- vides a unique and attractive alternative investment opportunity for long-term institutional investors. The question investors should ask is: ‘What is the right vehicle for investing in this market?’” according to Dr Amir Gutt- man, Founder & Managing Partner, HTF. HTF, a highly diversified evergreen Fund designed to track the private Israeli tech universe, is attending the marcus evans European Pensions & Invest- ments Summit 2018, in Montreux, Switzerland, 23 - 25 April. What makes Israeli tech start-ups attractive to institutional investors? Israel is known as the start-up nation. Over the last 20 years, on a macro level, the Israeli technology market has presented consistent profitability by developing and selling products and companies that have changed the world. Over 7,000 start-ups operate in Israel today, attracting over USD 5 billion annually from international investors. Annual exits include over 100 M&A transactions and IPOs, primarily on NASDAQ. The question is not why but how they should invest in this market. What unmet needs do institutional investors in Europe have in the private technology asset class that your fund addresses? Institutional investors are looking for alternative investments. Low interest rates have led to sharp price increases in equity and debt markets, as well as in the real estate and private equity markets. The private technology sector is under-represented in institutional portfolios for good reasons: high volatility of returns, high management fees, low liquidity, and lack of scalabil- ity. HTF has designed an investment vehicle that mitigates these barriers for large institutional investors. By using a passive investment approach, it creates a highly diversified portfolio of promis- ing private technology companies. The broad diversification (10 - 20 times that of an average VC portfolio) results in lower volatility of returns, lower man- agement fees, higher liquidity, and scalability. Why now? How has Israel’s tech ecosystem changed in the past 10 years? In recent years, the high-tech ecosys- tem in Israel (and in Silicon Valley) has grown and matured in many ways. Additional experienced talent now joins boards of directors. VCs, serial entre- preneurs, retired senior executives from relevant industries, mentors, and other advisors are happy to join company boards and add relevant, diverse, multidisciplinary points of view. This situation creates an opportunity, for the first time, to invest in the Israeli private technology sector using a passive methodology that facilitates building large diversified portfolios. How do you track the Israeli tech universe? The HTF model uses a strong Business Intelligence (BI) team to track public and proprietary information on start- ups, entrepreneurs, investors, corpora- tions, incubators/accelerators, and other players in the highly diverse Israeli technology ecosystem. This information translates into a timely deal-flow and an objective scoring mechanism that results in prompt investment decisions. The founders of HTF include the man- agement team of Aviv Venture Capital, who have been working together in the Israeli VC industry since 2001. They joined forces with the second largest asset management company in Israel, Meitav Dash (about USD 40 billion AUM) and its ETF subsidiary Tachlit (more than USD 8 billion AUM). The combina- tion of long experience and deep understanding in both sectors, VC and passive investing, led to the creation of the methodology that drives HTF’s BI system and is reflected in the quality of its output. What sectors and stages do you consider? HTF will be highly diversified over all life- cycle stages (except seed-stage) and over all technology sectors: software, IOT, cloud, automotive, fintech/ insurance-tech, cybersecurity, digital health, industry 4.0, agrotech/food- tech, etc. What would you say to investors who do not believe passive invest- ing is the best way? Passive investing brings the benefits of high diversification, low volatility of returns, low costs and high liquidity. In the past, passive investing was impossi- ble in private technology markets. Today, the strength of the technology ecosystem in Israel, together with advanced BI capabilities, makes it possible. I would recommend large institutional investors to invest in the private technology market by combining active and passive investing models just like they do when investing in publicly traded companies. Israel is known as the start-up nation A New Approach to Investing in Private Technology Companies
  2. 2. The Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional t r e n d s a n d b r e a k t h r o u g h innovations. Please note that the Summit is a closed business event and the number of participants strictly limited. About the European Pensions & Investments Summit 2018 The 18th annual European Pensions & Investments Summit is the ultimate meeting point, bringing elite buyers and sellers together. The Summit offers regional pension investors and international fund managers and consultants an intimate environment for focused discussion of the key new drivers shaping institutional asset allocations. Taking place at the Fairmont Le Montreux Palace, Montreux, Switzerland, 23 - 25 April, the Summit includes presentations on taking advantage of future market trends, utilising alternative strategies, identifying financial risks and canvassing global opportunities to source sustained portfolio profitability. www.epi-summit.com Contact Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division Tel: + 357 22 849 313 Email: press@marcusevanscy.com For more information please send an email to press@marcusevanscy.com All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.com About marcus evans Summits marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, case studies, roundtables and one-to-one business meetings. For more information, please visit: www.marcusevans.com About HTF HTF is a highly diversified evergreen Fund designed to track the private Israeli tech universe. HTF is the result of a joint effort of Dr. Amir Guttman and Mr. Yoav Chelouche, the managing directors of Aviv Venture Capital, who have been working together in the Israeli VC industry since 2001, and Meitav Dash, the second largest asset management company in Israel (about $40 billion AUM) and its ETF subsidiary Tachlit (above $8 billion AUM). The combination of long experience and deep understanding in both sectors, VC and passive investing, led to the creation of the methodology that drives HTF’s passive investment strategy and is reflected in the quality of its output. HTF was designed for institutional investors, pension funds, endowment funds, and large family offices, seeking to take advantage of the exceptional ROI that Israel’s privately held tech companies offer, on terms that fit their investment policies. amir@israeltechfund.com www.israeltechfund.com www.avivvc.com Upcoming Events Elite Summit - www.elitesummit.com Private Wealth Management Summit (APAC) - www.pwmsummit.com Private Wealth Management Summit (North America) - www.privatewealthsummit.com To view the web version of this interview, please click here: http://events.marcusevans-events.com/epi2018-amir-guttman

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