from the June 2007 issue

Israeli investors establish $155m. China fund

Infinity Fund has raised $155 million in the initial closing of the new Infinity Israel-China Fund. In a statement, Infinity said it will increase the target size of the fund by $100 million to $250 million. Participants in the first closing include investors in Infinity's previous funds as well as new investors, including private investors, fund of funds and large institutional investors from the United States, the United Kingdom, Canada, Switzerland, South Africa and Israel. The fund's sponsors include Clal Industries and Investments from the IDB Group as well as Glenrock Israel owned by Leon Recanati.

The Infinity Israel-China Fund is Infinity's second fund operating under its Israel-China business model. In January 2007, Infinity invested in Mate Intelligent Video, marking the first investment of the new fund. Mate develops and sells video surveillance, content analysis and transmission as well as management products for security, safety and retail applications. In this investment, led by Infinity and joined by its Chinese partner, CSVC/SIP, Infinity restructured Mate. Concurrently, Infinity and CSVC/SIP are also structuring and investing in a Chinese company which will serve as the marketing platform for Mate technology in China.

CSVC/SIP, Infinity's Chinese partners, will also invest alongside Infinity in future investments. The fund's core strategy is to make large investments in later-stage Israeli technology companies and established Chinese businesses that license, develop and market Israeli technologies for the Chinese market.

According to Infinity, its first fund operating under the Israel-China model was the first on-shore fund ever to be approved by the Chinese government (00001 registration number in China). Infinity has invested in six companies and has had two exits, NanoMotion and Shellcase. Infinity, founded by Clal Industries and Investments from the IDB Group has more than $400 million under management and has had 13 exits since June 2005. The company's offices are located in Tel-Aviv, New York, and China. Strategic partners include The IDB Group, I-CSVC/SIP in China, FBR (Friedman, Billings, Ramsey) and GE Investments in the United States.

Reprinted from the Israel High-Tech & Investment Report June 2007

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