The fintech company Liquidity receives a large vote of confidence from the Apollo Fund, one ofInvestment funds The world’s largest, with which it has signed an agreement under which Apollo will invest, together with Mitsubishi and Spark Capital funds (which already hold 20% of liquidity), a total of $ 40 million as part of the SAFE deal (which allows future conversion of investment into shares). Along with these investors, a number of additional investors will invest another $ 5-10 million in liquidity.
The transaction signed between the parties gives the company eFintech Which is under control Best Dash (44.6%) value of up to $ 800 million (after the money). Under the agreement, if a particular Liquidity investment transaction does not take place by a certain date set in the SAFE transaction, the conversion to Liquidity shares will be based on a value of $ 550 million (after the money).
As part of the deal, Apollo will provide Liquidity with a renewable credit facility of up to $ 425 million for five years.
Liquidity currently manages a number of debt funds in the Cayman Islands and Singapore that specialize in providing credit for emerging start-ups. Since its inception in 2019, Liquidity has provided cumulative credit in excess of $ 600 million in dozens of companies.
Although Meitav Dash updated that it is not expected to post an accounting profit following the transaction, its share value jumped by about 20% and reflects the company’s market value of about NIS 1.3 billion. The share price is now higher than when it was traded in August 2021, when the investment house suffered a severe blow: a class action ruling that required it to return more than NIS 400 million to members of one of the provident funds it manages, for overcharging management fees.
The investment house controlled by the Safak and Eli Barkat family acquired control of Liquidity as part of the investment agreement from March 2018, when it invested about $ 540,000 in Liquidity in exchange for 54% of the share capital. In addition, after receiving approval from the Audit Committee and the Company’s Board of Directors, Meitav Dash’s CEO, Ilan Raviv, invested about $ 60,000 in Liquidity, in exchange for an allotment of shares, which currently gives him about 4% of Liquidity’s shares.
For Meitav Dash, the current deal with Liquidity is a backbone for continued growth, as it is in the midst of legal proceedings that could cost it hundreds of millions of shekels. Following the ruling against him last summer, in which he was ordered to pay hundreds of millions of shekels for a class action, the investment house made a provision of 423 million shekels in order to meet the payment imposed on him.
As a result of this provision, Meitav Dash (who has meanwhile appealed the ruling to the Supreme Court) ended 2021 with a loss of NIS 414 million and its equity was cut by 50% and stands at NIS 507 million as of the end of last year. Of the group, after neutralizing the provision, amounted to NIS 129 million.
$ 800 million – The maximum value after the money that the transaction gives to liquidity
$ 550 million – The lower value imposed by the terms of the transaction for liquidity