WeSure Acquires Altshuler Shaham Pension and Provident Fund Operations
Translated & summarized from Globes by baba
WeSure, along with Yair Levinstein, is acquiring the pension and provident fund operations of Altshuler Shaham. This comes as Altshuler Shaham faces significant asset outflows and a drop in valuation, while WeSure aims to expand its presence in the pension market.
The story in 5 lines · by baba
- WeSure will acquire Altshuler Shaham's pension and provident fund business.
- Yair Levinstein will co-own the acquired business with WeSure.
- Altshuler Shaham has experienced significant fund outflows.
- The company's valuation has fallen substantially from its peak.
- Ayalon Insurance is aggressively seeking growth in the pension sector.
WeSure, the controlling shareholder of Ayalon Insurance, has agreed to purchase the provident fund and pension operations of Altshuler Shaham.
Under the deal, WeSure will partner with Yair Levinstein, the CEO of Altshuler Shaham's public arm, who will increase his stake to 25%. WeSure will hold 45% of the provident fund and pension company. The private investment house operations will remain with Gilad Altshuler and Ran Shaham.
Ayalon Insurance recently re-entered the provident fund sector with an ambitious goal of managing NIS 100 billion within five years, offering incentives to insurance agents to achieve this target.
Altshuler Shaham's financial performance has been impacted by significant outflows, totaling NIS 142 billion from provident funds and NIS 20.5 billion from pensions, representing more than half of its peak assets under management. The company's valuation has dropped from a high of NIS 4.5 billion to NIS 1.5 billion, despite a 70% stock increase over the past three years. At its peak, Altshuler Shaham managed NIS 215 billion in provident funds; currently, it manages NIS 109 billion in this sector and NIS 37 billion in pensions, with these areas accounting for 92% of the company's revenue. The company also has smaller operations in business credit, construction project financing, and alternative investments, primarily in real estate. Other activities, such as mutual funds, portfolio management, and crypto, are held by the owners' private company.
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