Israeli Institutions pour over $400M into U.S. defense-tech fund Veritas Capital
The fund has exceeded expectations in as geopolitical turmoil drives interest in national security investments.
The Trump effect and the launch of a new trade war have so far resulted mainly in sharp volatility on Wall Street and underperformance of American indices compared to their European and Israeli counterparts. As of this writing, the S&P 500 index has fallen nearly 4% since the beginning of the year, while Germany’s DAX index has risen by 18% and Israel’s Tel Aviv 125 has climbed by 10%.
But the effects of U.S. market volatility are not confined to public equities. They appear to be spilling over into the world of alternative investments—particularly defense-tech—where investor interest is enjoying a renewed renaissance.
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Ramzi Musallam, Veritas Capital CEO
(Photo: Jamel Toppin/The Forbes Collection via Contour RA by Getty Images)
One case in point: the American defense-tech private equity firm Veritas Capital recently raised NIS 1.5 billion (approx. $424 million) in Israel—NIS 500 million (approx. $141 million) more than its local fundraising target.
This fundraising is part of Veritas Capital Fund IX, which is currently seeking to raise $10 billion, making it the largest defense-tech fund in the world. The fund has already surpassed that target, growing to $14 billion, compared to the managers’ original goal of $13.5 billion. Veritas’ previous fund closed in 2022 with $10.65 billion.
Founded in 1992, Veritas Capital is led by CEO Ramzi Musallam, a U.S.-based investor of Jordanian origin. The firm manages around $50 billion across its various funds and specializes in investments at the intersection of government, national security, and advanced technology.
In the final months of 2024, Veritas raised over NIS 1 billion (approx. $282 million) from Israeli institutions, including $100 million from Clal Insurance, $60 million from Migdal Insurance, $50 million from Menora Mivtachim, and $50 million from private investors. The momentum continued even through March and April 2025—despite escalating trade tensions between the U.S. and countries such as China, Canada, and Mexico—as the fund secured an additional $100 million from private Israeli investors.
Veritas’ Israeli fundraising is the most substantial of any international market in which the fund is active. Its local marketing is being managed by Leader Private Capital, a subsidiary of Leader Capital Markets, which is working to rehabilitate the image of Israel’s alternative investment market—long dominated by insurance agents and marred by scandal.
In recent years, several non-tradeable investment products were aggressively marketed in Israel to both retail and accredited investors, often with disastrous outcomes. According to a Calcalist investigation, nearly NIS 7 billion (approx. $1.98 billion) was lost in a series of failed offerings from firms such as Slice Investors (NIS 4 billion / approx. $1.13 billion), Montero (NIS 450 million / approx. $127 million), Wealthstone (NIS 800 million / approx. $226 million), and Personal (NIS 500 million / approx. $141 million).
