Former Doral CEO Yaki Neumann Launches New Renewable Energy Firm with Sphera Fund

Three and a half months after leaving Doral, Yaki Neumann has established a new renewable energy venture, partnering with the owners of the hedge fund Sphera and other investors. The new company, to be named FinErgia, will see Sphera's partners as its leading investors. The firm is already acquiring renewable energy projects in Spain, with plans to raise NIS 500 million for its operations. Sphera's founding partner Ron Sontag, tech funds manager Nadav Tzehler, and managing partner Omer Dgani are leading the initiative for the fund, marking Sphera's first foray into real-world operations. Sphera, Israel's second-largest hedge fund managing approximately NIS 7 billion, will operate this new venture alongside its existing hedging and investment house activities.

FinErgia aims to be listed on the stock exchange within two to three years. The capital raised will be used to purchase mature European energy projects, which the company intends to enhance through storage and refinancing. A first deal, involving the acquisition of a 138-megawatt portfolio of three solar projects in Andalusia, Spain, is expected to be finalized soon. The company seeks to improve project yields by tens of percent in its target markets, with a goal of establishing a 200-megawatt solar and 800-megawatt-hour storage portfolio in Spain within two years.

Neumann, who spent 18 years at Doral, including 12 as CEO, is leveraging his extensive experience. Doral's valuation reached a record high of NIS 24 billion after his departure but has since fallen to NIS 11.5 billion. Neumann was instrumental in Doral's expansion into the U.S. market and its development of a subsidiary IPO. Doral currently has a project pipeline of 23 gigawatts of solar and 30 gigawatt-hours of storage projects.

FinErgia plans to focus on acquiring mature projects that have necessary approvals, are nearing operation, or are already generating electricity. The company aims to capitalize on situations where solar projects, established under different market assumptions, are now facing challenges such as declining electricity prices during peak sun hours, grid limitations, lack of storage, and outdated financing structures. This strategy is designed to avoid initial development risks. The investment model projects asset enhancement within 12 to 18 months, with potential exits within 24 to 30 months. Investors are expected to receive equity in the European operations and the parent company. Neumann and Sphera's partners aim to build an international financial platform for green energy assets, with an initial focus on solar power, before eventually expanding into Israel.