Clal Insurance Explores Investment in Value Base at $600 Million Valuation

Clal Insurance is in negotiations to invest up to NIS 150 million in Value Base, a leading Israeli investment banking and private equity firm. The proposed deal would grant Clal Insurance an 18%-20% stake in Value Base, valuing the company at NIS 600 million before the capital injection and approximately NIS 732-750 million after. This investment marks a significant milestone for Value Base, which has evolved from underwriting and advisory services into a broad platform for mergers, acquisitions, and large-scale investments over the past decade.

If the deal is finalized, Clal Insurance will join Value Base's existing shareholders, including founders Victor Shmrich and Ido Neuberger, as well as Meitav Investment House and Natan Hach and Wertheim Holdings. Meitav currently holds about 15.8% of Value Base. The new share allocation will dilute existing shareholders but will inject significant capital and bring a major Israeli financial institution into the company.

Clal Insurance CEO Yoram Naveh stated that the company's board has approved proceeding with negotiations, expressing enthusiasm about joining Value Base as a shareholder and contributing Clal's expertise and international connections to enhance Value Base's operations. Shmrich and Neuberger echoed this sentiment, viewing Clal's investment as a significant vote of confidence that will accelerate Value Base's growth strategy.

Founded in 2013 by Shmrich and Neuberger after selling their stake in Dash Apex, Value Base operates in investment banking, underwriting, and alternative investments. The firm has been involved in major deals, including leading the acquisition of Dan Transportation in 2019 and subsequent divestment, and has a history of successful direct investments. Clal Insurance is already a significant investor in Value Base's private equity fund, having committed approximately NIS 310 million.

This investment aligns with Clal Insurance's strategy to diversify beyond traditional insurance and savings, tapping into Value Base's diverse revenue streams from transactions, underwriting, capital raising, advisory services, and investments. Value Base's recent activities include advising on the merger of Magic Software with Matrix for approximately NIS 9 billion and the entry of Delek Group into Israel Credit Card Company for about NIS 3.5 billion, alongside leading IPOs for Sugat and Michpal.