The Phoenix Group

The Phoenix GroupThe Phoenix is the third largest insurance group in Israel.

The company is active in all traditional insurance areas (life, pension, provident, health and general).

As part of its involvement in long-term saving fields, the company manages assets of about 5 billion dollars.

Asset AllocationThe Phoenix has historically pursued a relatively conservative strategy by which a greater portion than the industry average was invested in low risk fixed income instruments.

Recently, a more advanced strategy has been applied by which a growing portion has been allocated to the various types of alternative investments.

Alternative InvestmentsWithin the alternative investments asset class the Phoenix is specifically concentrated in:

Hedge Funds Real Estate

Private Equity Structured Products

Today, the alternative investments asset class is growing, currently at 3% (6.7% in commitment terms) and intended to be at 10% within three years.

Total current exposure – 140 million dollars.

Private Equity FundsKey Investment Criteria

Track record of the fund or the managers

Fair key terms of investments (management fees, hurdle rate, clawback)

GP Commitment to invest

Expertise

Dedicated rather than global funds

Relative Advantage in niche investment areas

Tax considerations – No U.S. exposure

Investment Examples

Real Estate – 4 Funds (Apollo, GLL)

Buyout – 7 Funds (Apax, FIMI, Markstone)

Venture Capital – 6 Funds (Yozma, Medica)

Secondary – 2 Funds (harvest, Vintage)

Next Steps

Increase exposure to real estate abroad

Invest in private equity fund of funds abroad to improve funds selection

Entry to mezzanine funds