The numbers behind FIMI: Zim deal lifts the veil on Israel’s private equity giant
Rare financial disclosures tied to the $4.2 billion Zim deal reveal $698 million in annual profit and outsized returns driven by defense investments.
FIMI, Israel’s largest private equity fund, will mark 30 years of activity this year. Over that time, it has raised $4.4 billion across seven funds and completed 66 exits. Despite backing from Israel’s largest institutional investors, its performance has largely remained opaque, as is typical for private funds.
That changed with its recent bid to acquire shipping company Zim.
As revealed by Calcalist, FIMI and German shipping giant Hapag-Lloyd have formally submitted an application to the state seeking approval to acquire the Israeli shipping company Zim. Under the deal signed last month with ZIM’s board, chaired by Yair Seroussi, Hapag-Lloyd will acquire all of Zim’s shares for $4.2 billion and delist the company from the New York Stock Exchange.
The agreement follows a competitive process launched after a rival bid led by Zim CEO Eli Glickman was rejected. As part of the transaction, Hapag-Lloyd will transfer Zim’s Israeli operations to FIMI, which will establish a new local entity, “Zim Israel,” to comply with the state’s golden share requirements.
FIMI is executing the acquisition through its seventh and largest fund, which raised $1.25 billion in 2021. As part of the regulatory approval process, the fund was required to submit its financial statements, offering a rare glimpse into the performance of one of Israel’s most prominent investment firms.
The documents show that FIMI 7, led by founder, CEO, and controlling shareholder Ishay Davidi, recorded a net profit of $698 million in 2025, a 2.7-fold increase from approximately $259 million in 2024. The figure surpasses the net profit reported by Elbit Systems, which earned $534 million in 2025.
Converted at the average 2025 exchange rate, FIMI 7’s profit amounted to approximately NIS 2.4 billion, placing it, in effect, among the most profitable entities in Israel, behind only major banks such as Bank Hapoalim and Bank Leumi, each of which reported around NIS 10 billion in net profit.
Notably, these figures reflect only FIMI 7. The fund manager continues to operate three additional active funds, FIMI 4, FIMI 5, and FIMI 6, suggesting that total profits across the group are significantly higher.
FIMI 7 is structured as two entities, an Israeli partnership and a Delaware-registered American partnership, whose results are consolidated. Davidi and his wife, Shira, control 80% of the fund’s general partner, while senior partner Gillon Beck holds the remaining 20%.
The fund’s 2025 performance was driven by a combination of disposals and revaluations. Gains from exits totaled $291.3 million, roughly 20 times higher than in 2024, while revaluations of portfolio companies contributed $287.6 million, up 12% year-on-year. Additional income from dividends, loan repayments, and interest reached $43.3 million, nearly four times the previous year’s figure.
The fair value of FIMI 7’s portfolio rose 53.7% to approximately $1.39 billion by the end of 2025, while total assets under management across FIMI exceed $7 billion.
A closer look at the fund’s 11 portfolio companies highlights the impact of surging demand for defense-related assets on the Tel Aviv market.
One standout investment is Ashot Ashkelon, in which FIMI holds a 49.5% stake. The company manufactures drive systems, transmissions, and complex components for armored vehicles such as the Merkava tank, as well as parts for military and civilian aircraft. FIMI acquired control of the company from Elbit in 2022 at a valuation of NIS 300 million. According to FIMI 7’s reports, the investment cost $42 million and was valued at $303.6 million by the end of 2025.
Following a 350% surge in its share price over the past two years, the company’s market value has reached NIS 2.8 billion. FIMI has already realized approximately $138 million through partial sales and dividends, resulting in a total return multiple of 10.5x, the highest in the fund’s portfolio.
Another strong performer is Amal Holdings, a nursing and human resources company. FIMI acquired control in 2022 at a valuation of NIS 1 billion and took the company public in late 2025 at a valuation of NIS 2.7 billion, generating proceeds of approximately NIS 640 million. The investment has yielded a multiple of 8.1x.
Defense manufacturer Marom Dolphin has also delivered strong returns, with an investment multiple of 4.5x. FIMI acquired a 50% stake in the company, which produces tactical equipment for security forces, at the end of 2024. While the company remains private and does not disclose financial results, its valuation has risen sharply since the acquisition.
These gains reflect broader geopolitical trends, including the war in Ukraine and ongoing conflicts in the Middle East, which have driven increased demand for defense technologies.
Some investments raise questions. Landa Digital Printing, acquired after collapsing under NIS 1.74 billion in debt, is now valued at $141.2 million in FIMI’s books, more than double its $60 million investment cost.
Similarly, Bio Lab, a producer of advanced chemical materials, has reached a valuation of $135 million, a 4.3x multiple, less than a year after acquisition.
The Zim deal itself contains unusual financial terms. FIMI will not pay for the Israeli operations until it realizes at least $200 million in cash returns, through dividends or asset sales. After that threshold, Hapag-Lloyd will be entitled to 50% of any further proceeds.
In addition, Hapag-Lloyd has guaranteed minimum profitability for the new Zim entity for several years and will provide operational support during a transition period expected to last around five years.
Zim Israel will operate a reduced fleet of 12 owned vessels and four chartered ships, down from Zim’s current fleet of 116, and will employ between 80 and 120 workers, compared with roughly 900 today.
The arrangement also ensures long-term operational continuity, including container supply agreements and minimum shipping volumes from Hapag-Lloyd.
FIMI stated it will comply with all “golden share” requirements, including provisions allowing the state to requisition shipping assets during emergencies. The fund also noted it will not require bank financing to complete the transaction
