2023-12-09 08:36:00
Fortissimo Investment Fund Founder Looks to Expand Portfolio with Cellcom Investment
Yuval Cohen, founder and partner of the Fortissimo investment fund, is exploring the potential purchase of Cellcom, as part of the fund’s strategy to invest in primarily private companies and improve their performance to generate higher returns. Fortissimo’s successful investment model, which has attracted institutional entities, private investors, and investors from around the world, is based on the belief that investing in market-leading, cash-generating companies across various sectors can lead to significant growth.
While Fortissimo’s returns in the last year and a half have been relatively weak due to market conditions, the fund recently closed a massive fundraising of about 1.1 billion dollars for its sixth fund, allowing Cohen to take advantage of favorable buying opportunities in the market. Cellcom, which has been trying to sell for years, has now caught the attention of Fortissimo as a potential investment.
Despite Cellcom’s struggle with a large financial debt and the competitive nature of the telecommunications industry, Cohen believes there is potential for improvement. With new management focused on improving results, reducing debt, and exploring new revenue streams through updated TV business models, Cellcom has shown consistent improvement in cash flow and a reduction in leverage in recent quarters.
Fortissimo’s track record of successful investments includes companies like Sodastream, where an initial investment of under 10 million dollars turned into 230 million dollars, and Cornit, where an investment of 16 million dollars turned into 300 million dollars. However, not all investments have been successful, as seen with the sale of the telecommunications company Tallard for only NIS 200 million, 40% below its value five years prior.
Despite challenges, Fortissimo has maintained a diversified portfolio of over 50 investments in Israeli companies, spanning technology, industry, communications, health, and food and agricultural technology. The fund’s successes and failures illustrate the complexities of investment management, which is sensitive to market conditions and company-specific factors.
If Fortissimo proceeds with the purchase of Cellcom, it will add to its growing portfolio of companies and further explore opportunities for improvement and growth. The potential acquisition of Cellcom represents both the challenges and opportunities that Fortissimo faces as it navigates the intricate landscape of investment management.
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