Rani ZimWho made his fortune in retail and real estate, wants to become a significant player in the financial world as well, and his dream has received a seal of approval in recent days, with the publication of the reports of Valio Capital Owned by him, for the first time after the acquisition of the portfolio management activities and mutual funds of the Psagot Investment House last September. The reports reveal that in the fourth quarter, Valio Capital’s net profit was NIS 7.7 million.
The company did not content itself with presenting the net contribution of the acquisition of an activity PeaksAnd the annual report also included pro forma reports, which reflect a situation in which Psagot’s acquired activity has been included in Valio Capital One since the beginning of 2021. According to the pro forma reports, such a situation would have generated revenues of NIS 315 million, with net representative income, less intangible assets. And non-recurring expenses, in the amount of NIS 37.9 million.
With food comes appetite, and Globes has learned that Capital intends to expand its activities to the field of alternative investment funds, which will offer different investment options in Israel and around the world in different fields. The alternative activity will be concentrated under the name “Psagot Properties” and the first area in which it will operate will be real estate, and Psagot intends to set out and raise $ 150-200 million from institutional and qualified investors.
Zim, which recently became the controlling owner of Psagot, will try to harness the fact of being a veteran entrepreneur in the real estate markets in Israel, who also previously managed real estate activities in the US. Through its connections and accessibility to transactions in overseas markets, Zim may assist fund operations Investing to locate and bring investors unique investment deals in global real estate.
Psagot explained that one of the funds will specialize in residential and hotel in Italy, and the other in commercial real estate in England, in light of the state of the world real estate markets, real estate returns, prices and profitability potential. Psagot also selected selected developers in Italy and England for cooperation Multi-proven and excellent performance over time.
Psagot Properties will be managed by Daniel Leventhal, who will serve as the managing partner of the activity. In his most recent role, Bentel served for over five years as CEO of the Mishorim Real Estate and Public Investment Company controlled by Alex Schneider. Prior to that, he served as Deputy CEO of the Development and Construction Group at Set, as well as VP of Finance and Deputy CEO of Investment Houses.
The funds generated NIS 56 million in the fourth quarter
The new field of activity comes as stated against the background of the windfall that Valio Capital received from the contribution of the acquisition of Psagot’s activity. The original transaction was signed in May 2021, but was finally completed at the end of August, when Valio Capital paid Altshuler Shaham Investment House NIS 405 million (net) for mutual fund and mutual fund activity under “Psagot Mutual Funds”, a member of the stock exchange (brokerage). And portfolio management activities under “Psagot Securities” and hedge fund activity under “Psagot Compass”.
The company’s financial statements show that in 2021 as a whole, Valio Capital recorded revenues in the amount of NIS 118 million, of which NIS 75 million came from mutual fund management activities and ETFs managed in Psagot (as of August last year). The company ended the fourth quarter of 2021, which is the first quarter in which Psagot’s activity is fully included for an entire quarter, with revenues of NIS 86.3 million, of which NIS 56.3 million for mutual fund management activities and ETFs.
In the fourth quarter, Valio Capital’s net profit was NIS 7.7 million, and it ended the entire year with a loss of NIS 3.7 million. The company’s representative net profit, according to the management’s approach, amounted to NIS 10.5 million in the fourth quarter of 2021. This is after the neutralization of the reduction of intangible assets, the cancellation of the positive effect of an option in respect of the Free Pay company and various one-time expenses.
A 18% drop in the stock since the completion of the deal
Despite the profit potential presented by the financial statements and pro forma statements, investors have so far not led to an increase in the share price. The company is traded at a value of NIS 362 million, and the share price has fallen by 18% since the acquisition of Psagot was completed at the end of August.
Valio Capital’s reports also reveal the company’s highest earners. Psagot Securities CEO Yuan Kadosh was rewarded last year with an amount of NIS 2.5 million. Daniel Alon, the chief investment officer of Psagot Campus, earned about NIS 2 million. Zim itself, which serves as chairman of the board and holds about 53% of the company’s shares, received a share-based payment of NIS 700,000 in 2021.