Israel Securities Authority Probes Investment House Horizon Before Stock Exchange Debut
Translated & summarized from Calcalist by baba
Israel's Securities Authority is investigating investment house Horizon for alleged breaches of trust and diligence ahead of its planned merger with Blue Wave and entry into the Tel Aviv Stock Exchange. Horizon, which manages NIS 2 billion in assets, disputes the claims. The merger values Horizon at NIS 40 million, with controlling shareholder Itai Lipkowitz expected to remain involved. The company has reported significant revenue and profit growth in recent years.
The story in 6 lines · by baba
- Israel's Securities Authority is investigating investment house Horizon before its stock exchange debut.
- The probe concerns alleged breaches of trust and diligence by Horizon, which manages NIS 2 billion.
- Horizon is set to merge with Blue Wave, a deal valuing Horizon at NIS 40 million.
- Horizon's controlling shareholder, Itai Lipkowitz, claims the firm has defenses against the inquiry.
- Horizon's mutual funds have seen substantial redemptions, losing 63% of assets year-to-date.
- Blue Wave plans to integrate Horizon's operations and expand into fintech.
Israel's Securities Authority is currently conducting an administrative inquiry into the investment house Horizon, which is seeking to go public. According to a report by Blue Wave, the company set to merge with Horizon, the inquiry concerns alleged breaches of trust and diligence under the law regulating investment advice and portfolio management. Horizon and its controlling shareholder, Itai Lipkowitz, maintain they have defenses against the proceedings. Horizon, which manages approximately NIS 2 billion in assets, is slated to enter the Tel Aviv Stock Exchange early next month through a share sale to Blue Wave. Blue Wave, valued at only NIS 19 million at the time of the deal's announcement, will initially acquire 49.9% of Horizon for NIS 20 million, followed by the remaining 50.1% in eight equal quarterly payments. The total transaction values Horizon at NIS 40 million. Founded in 2010 by Lipkowitz, who holds all its shares, Horizon manages portfolios for private clients, companies, and businesses, as well as investments for Ayalon mutual funds. The firm has seen significant growth, with revenues reaching NIS 15.2 million in 2025, up from approximately NIS 10 million in 2024, and net profit soaring from NIS 1.5 million to NIS 3.5 million in the same period. The deal's valuation reflects a price-to-earnings ratio of about 11.5 based on its 2025 net profit. While the total assets managed by Horizon as a private entity are not precisely known, its mutual funds hold about NIS 380 million. However, these funds experienced redemptions of NIS 645 million from the start of the year through September, representing about 63% of their managed assets. Following the merger, Lipkowitz is expected to remain with Horizon as chief strategist and may receive up to 19.9% of his payment in Blue Wave shares instead of cash. Blue Wave aims to expand into fintech and capital markets and plans to fund the initial stage of the acquisition through private equity and debt. It also intends to explore integrating Horizon's operations with its subsidiary, 24-6 Technologies.
Mentioned
The same event, reported separately by each outlet. Open a few to compare what different newsrooms emphasize — and what they leave out.
Other 2
Not the same event — other stories that share this one’s people, places, or theme: background, reactions, and follow-ups.
