Former No. 2 at Israel’s Apax Launches Competing Investment Fund Amid Legal Dispute

Erez Nahum, formerly the second-in-command at Apax Israel, is establishing a new investment fund called Leox Opportunity Fund, aiming to raise 500 million shekels. The fund will focus on mid-sized Israeli companies valued between 100 and 200 million dollars, targeting sectors such as consumer goods, services, defense industries, and technology. Nahum is currently meeting with institutional investors, banks, family offices, and business owners to present the fund, which plans to invest 20 to 30 million dollars per deal and complete investments within four years. Management fees are set at 2%, with a 20% success fee, and Nahum intends to add one or two partners to manage the fund.

This move comes amid an ongoing legal battle between Nahum and Zehavit Cohen, head of Apax Israel, and the Apax funds. Nahum filed a 10 million shekel lawsuit in February at the Tel Aviv District Court, alleging wrongful termination and workplace harassment by Cohen, claiming he was a top employee and designated as her successor. Cohen denies these claims, accusing Nahum of attempting to oust her and then launching a revenge campaign to damage her reputation and business. She asserts that Nahum was supported by the company but breached his duties, justifying his dismissal.

Nahum’s new fund will compete directly with Apax Israel in the same market segment. The first investment deal is reportedly in advanced negotiations and expected to be a co-investment with one or two institutional partners. The Israeli investment landscape has seen increased activity recently, with other private funds launched by former senior investment professionals, including Ami Bam’s Brit Fund and One Invest led by Ofer Aviran. Nahum’s background includes eight years at Apax Israel, where he served as chairman of Psagot and director at Max Stock, and prior experience in investment banking at Bank of America Merrill Lynch in New York.