Pegasus operating advisor Arik Arad said, "In 2010, we'll mostly invest in Israeli water, renewable energy, and homeland security technology companies." He added, "We're also open to other fields."
A common complaint of Israeli high-tech entrepreneurs, managers, and investors is about money, specifically, the lack of it. They don't take issue with the availability of money for founding start-ups, but "real" money needed to turn a small company into a big one and boost a start-up to the next stage.
Therefore, any announcement about an additional source of capital for Israeli companies could be important, especially if the source is a private equity fund that can fairly easily leverage additional funds.
Pegasus is not a large private equity fund, in US terms. Founded in 1995, it manages $1.8 billion, and focuses on mid-sized companies, by providing financial support, and sometimes strategic advice with a focus on penetrating the US market.
This is not the first time that Pegasus has invested in Israeli companies; it invested about $100 million in Israeli companies in 2005-08, after Arad joined the firm to handle investments in security related companies. Pegasus was also mentioned in connection with the acquisitions of Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and Granite Hacarmel Investments Ltd. (TASE: GRNT).
US private equity fund Pegasus Capital Advisors LP will invest an additional $150 million in Israeli companies with an emphasis on technological capabilities.