“The world is beginning to understand Israel's economic power and its enormous capital potential”
Leader Private Capital CEO Itay Elnatan made the remarks at the opening of the Israel Private Markets Summit in Tel Aviv. “Today, Israel is not just surviving - it’s leading.”
Itay Elnatan, CEO and Managing Partner of Leader Private Capital, opened the Israel Private Markets Summit (IPM), the main annual conference of the institutional capital market for alternative investments, which was held this week at the Peres Center for Peace and Innovation in Tel Aviv. This is the fourth consecutive event initiated and led by Leader Private Capital, which has established its position as the central stage of the non-marketable investment market in Israel.
Hundreds of senior representatives from the investment industry in Israel and around the world took part in the conference, including top global fund managers, institutional investors, banks, financial advisors and family offices. Among the participants were leading international entities such as CD&R, Blackstone, Brookfield, Apollo, Blue Owl, HarbourVest, LS Power, Hamilton Lane, ICG, Lexington Partners, and Antares. Their very participation illustrates the growing position of Israel and institutional capital on the global investment map.
Throughout the day, speakers discussed key trends in non-tradable markets, from the rise in private debt, through infrastructure and real estate investments, to recent developments in the private equity markets. The conference continued to establish its status as the flagship event of the local industry and as an annual meeting connecting fund managers, institutional entities and investors from Israel and around the world.
"Israel is not just surviving - it’s leading"
In his opening remarks, Elnatan referred to the impressive recovery of the Israeli economy over the past two years:
"Not two years have passed since Israel faced one of the most challenging periods in its history, a period of security, social and economic uncertainty. But what has happened since then is a story of resilience and faith. Today, Israel is not just surviving - it’s leading. It is building infrastructure at an unprecedented pace, attracting global capital and positioning its capital market among the most advanced in the world."
He then presented compelling data: "In the first half of 2025, the TA 35 index led the world's performance charts, the IPO market came back to life, and trading volumes are breaking records. Israel's pension system ranks among the world's top, an expression of responsibility and long-term professional management. Life expectancy and GDP per capita are among the highest in the world, and Israel was recently ranked among the ten most influential countries. A small country in size but with real weight in the global economy."
He added that Israel leads in the number of unicorn companies per capita - a testament to the power of local entrepreneurship and innovation.
Between a temporary slowdown and a renewed opportunity
Elnatan continued his remarks by presenting the macro picture of the institutional capital market in Israel. According to the data, the total financial assets of the public and institutions in Israel reached a peak of 6.6 trillion shekels, with institutions managing almost 3 trillion shekels of which - an increase of more than 200 billion shekels in just one year. He also noted that "never have these entities held so much cash," Elnatan said, "but a significant portion of the capital is still awaiting a clear destination."
According to the data, approximately 11% of investment portfolios are currently held in cash - a rate much higher than the global average, indicating record liquidity levels and enormous investment potential. However, after a decade of continuous growth, there is a noticeable slowdown in allocations to private markets: the volume will decrease from 11.6% in 2023 to about 10.2% in the first half of 2025. "This is a conservative approach by institutions in light of the war and global uncertainty, as well as a slowdown in distributions by funds, but all of this is going to change, and quickly," explained Elnatan. "Private equity remains stable, real estate stagnates, private debt strengthens, and infrastructure is on a positive trend"
The data presented at the conference illustrates that the real value in alternative investments does not stem from the volume of allocation but from the ability to choose the right managers: Private Equity funds from the top quartile have generated a cumulative return of 12 times since 2008, compared to only 5 times for the average Private Equity fund (a figure almost identical to the S&P 500 index, which also presented a multiple of 5 times for this period)
Elnatan concluded this section by saying: "The era of automatic allocation is over. Now precision and choice are required. Success will come from the ability to choose correctly – not from the volume of exposure, but from its quality."
Expectations for renewed growth in investment volumes
Despite signs of slowdown, private equity leaders are cautiously optimistic. "Allocations may be shrinking, but the opportunities have never been greater," said Elnatan. According to him, the wheel is expected to change direction in the coming months: "We expect that in the coming year, institutional entities in Israel will make new commitments in the amount of over NIS 100 billion, a figure that will return the exposure of institutions to the average activity levels that have characterized recent years, and from there it is expected to continue to rise every year as we have seen in recent years."
He said that this trend is not limited to institutions. "We are also seeing accelerated growth in the qualified investor market, which is becoming a significant factor in the alternative investment system today. Between 20% and 30% of all our fundraising comes from this sector," Elnatan noted. The combination of institutional capital and private equity illustrates the enormous capital potential that is currently available for investment in the Israeli market.
