Altshuler Shaham Founders Sell Control in $275 Million Deal

Founders Gilad Altshuler and Kalman Shaham are selling their controlling stake (55%) in the public pension and provident fund operations of their investment house, Altshuler Shaham Finances, to the insurance company Weshore and the firm's CEO, Yair Levinstein, for approximately 1 billion shekels (about $275 million). This marks the end of their significant involvement in this division, which has faced challenges due to weak returns in recent years.

Altshuler Shaham has experienced substantial withdrawals of funds, losing more than half of its peak assets under management. The founders' exit is also expected to include their partners, the Bar family, who will receive nearly 100 million shekels. Galia Bar Wilf and Daniel Binian-Bar, children of businessman Shlomo Bar and partner Roni Binian-Bar, hold nearly 10% of the private investment house, which in turn holds the public pension and provident fund operations. The Bar family joined the firm in 1994 and Roni has served as a director.

Following the sale of the public operations, the Bar family will retain their stake in the private division of Altshuler Shaham. This private arm, valued between 300-400 million shekels, includes mutual funds managing approximately 20 billion shekels, investment portfolios, hedge funds, brokerage activities, and cryptocurrency trading. Gilad Altshuler and Ran Shaham, son of Kalman, are expected to continue leading the private operations.

The Bar family's wealth also stems from their ownership of the public electronics company STG, founded by 88-year-old Shlomo Bar. STG, which imports and markets electronic components and equipment, went public in 1993. The company saw a significant stock price increase last year, particularly in the defense sector, reaching a peak valuation of about 410 million shekels. However, its stock has since fallen by nearly 60%, with the company currently valued at around 158 million shekels. STG reported a 13% decrease in revenue for the first half of the year, totaling approximately 91 million shekels, and a 69% drop in net profit to about 3.1 million shekels, attributed to increased salary expenses and rising component costs.