Apax under fire as senior partner alleges toxic culture under Israel head Zehavit Cohen
The lawsuit by Erez Nahum claims humiliation, retaliation, and governance failures at the top of the private equity fund.
For years, the Israeli arm of international private equity fund Apax Partners was considered one of the quietest yet strongest players in the local capital market. Under the dominant leadership of Zehavit Cohen, the fund executed major deals in companies such as Bezeq, Tnuva, Psagot, and most recently Yad2 and Max Stock. However, a lawsuit filed on Monday with the Tel Aviv Regional Labor Court reveals cracks within the fund’s management and paints a picture of troubled labor relations, allegations of abuse, and deficiencies in corporate governance.
The plaintiff, Erez Nahum (44), who until recently was considered a “rising star” and Cohen’s protégé, is seeking damages totaling approximately NIS 10 million for what he defines as unlawful dismissal, harassment, defamation, and emotional distress. In addition, Nahum is seeking declaratory relief regarding rights in various funds estimated at an additional $4-5 million.
Nahum’s journey at Apax began in 2018, when Cohen recruited him from the Merrill Lynch office in New York. During his tenure, he led five of the fund’s six major investments in Israel in recent years, was appointed chairman of Psagot at age 38, and at the end of 2024 was promoted to sole partner status alongside Cohen at Apax Israel (AMI).
However, according to the lawsuit, the turning point occurred on November 10, 2025, in New York. Nahum met privately with Mitch Truwit, co-CEO of Apax Global, to complain about what he described as a “culture of fear” allegedly fostered by Cohen in the Tel Aviv office. He claims that shortly after his appointment as partner, Cohen began humiliating and verbally abusing him, behavior he says was also directed at the previous partner who retired, Shay Aba.
The lawsuit includes dozens of WhatsApp messages that, according to Nahum, illustrate the management style at the firm. He describes public “humiliation rituals” for employees and a toxic work environment characterized by shouting and profanity. In one cited message, Cohen allegedly wrote to Nahum regarding an employee: “We’ll need a ceremony that will do this in front of everyone… a real humiliation.”
A significant portion of the lawsuit focuses on derogatory language that Cohen allegedly used in reference to senior executives and colleagues. According to the filings, she referred to managers and directors as “zero,” “trash,” “idiot,” and “rag.” Well-known figures in the capital market were allegedly described in offensive terms.
In addition, Nahum alleges statements with racist and homophobic overtones. Among other claims, he alleges that Cohen used derogatory expressions about certain social groups and referred to colleagues using religiously based nicknames. One particularly serious allegation concerns a public reprimand of Nahum after he arrived late due to his son’s hospitalization, during which she allegedly shouted at him in an abusive manner.
Beyond the personal allegations, the lawsuit raises claims regarding the fund’s business conduct. Nahum alleges that Cohen acted under a potential conflict of interest when she sought to increase fees for an accounting firm in one fund in order to secure a discount in another fund in which her personal stake was larger.
He further claims that during the dispute, Apax prevented him from participating in board meetings of public companies such as Max Stock and threatened to bar him from physically entering meetings. Nahum describes this as a “blatant violation of the most basic norms of corporate governance.” He also criticizes Max Stock’s failure to report to the public the existence of an internal investigation concerning its chairman (Cohen), which he characterizes as unprecedented from an investor standpoint.
According to Nahum, Apax Global management initially showed understanding of his claims. He alleges that Truwit acknowledged awareness of concerns regarding Cohen’s conduct but said it was difficult to act against her due to her central role in the fund. The fund subsequently retained the international law firm Clifford Chance to conduct an internal investigation.
However, Nahum claims that the process later became “Kafkaesque.” He alleges that after Cohen learned of his complaint, she launched a smear campaign against him, labeling him a “traitor” and “unstable,” and allegedly attempting to encourage damaging accusations against him.
According to the lawsuit, a draft investigation report submitted in December acknowledged the existence of offensive messages from Cohen but characterized them as part of a blunt management style rather than misconduct. The report also examined allegations against Nahum, including claims of inappropriate conduct and declining professional performance, allegations he strongly denies and describes as fabricated.
Apax response: “Baseless accusations”
Apax categorically rejects the allegations. According to the fund, Nahum is not a whistleblower but a senior executive who failed to meet expectations, breached his duties, and lost the firm’s trust. Apax emphasizes that the independent investigation concluded there was no basis for the serious allegations made against Cohen.
According to the fund, Nahum’s dismissal stemmed from improper conduct, including aggressive behavior in the workplace and a breakdown of trust. It argues that his complaints arose amid internal tensions regarding leadership succession. From Apax’s perspective, the fact that the investigation did not substantiate Nahum’s claims does not indicate flaws in the investigative process.
Apax Global stated: “We strongly reject these allegations. Upon learning of the claims made by Erez Nahum, we appointed an international law firm to conduct an independent investigation, together with an Israeli law firm that Mr. Nahum himself was involved in selecting. The process concluded and determined that there was no basis for these allegations.”
