Investment Strategy
Seeking to Unlock High Growth Potential
Tene applies a disciplined investment strategy throughout the life of its portfolio
investments, beginning with seeking well-established, export-oriented
companies with strong existing and dynamic markets plus significant growth
potential, a talented management team and vital, competitive technological,
product or market advantages.
Our investment strategy favors investment in companies that can utilize the
investment capital to spur growth by increasing capacity, international
expansion or growth through acquisition.
Our Principals are active in the strategic guidance and business development of
each portfolio company throughout its life cycle. This can only happen with an
extensive investment of time and close collaboration with company
management on strategic planning prior to the investment, along with working
side-by-side with management to maximize efficiency internally and identify
promising external technologies during the portfolio stage.
We place a strong emphasis on creating a revenue stream throughout the
lifecycle of the portfolio company, rather than relying solely upon exit. For this
reason the Principals focus on companies with a strong existing cash flow,
enabling immediate dividend distributions. This is coupled with an emphasis on
a well-defined exit strategy, planned during the early stages of investment,
that can be realized within 3 to 5 years.
What are Tene's competitive advantages?
Tene applies a disciplined investment strategy throughout the life of its portfolio
investments, beginning with seeking well-established, export-oriented
companies with strong existing and dynamic markets plus significant growth
potential, a talented management team and vital, competitive technological,
product or market advantages.
Our investment strategy favors investment in companies that can utilize the
investment capital to spur growth by increasing capacity, international
expansion or growth through acquisition.
Our Principals are active in the strategic guidance and business development of
each portfolio company throughout its life cycle. This can only happen with an
extensive investment of time and close collaboration with company
management on strategic planning prior to the investment, along with working
side-by-side with management to maximize efficiency internally and identify
promising external technologies during the portfolio stage.
We place a strong emphasis on creating a revenue stream throughout the
lifecycle of the portfolio company, rather than relying solely upon exit. For this
reason the Principals focus on companies with a strong existing cash flow,
enabling immediate dividend distributions. This is coupled with an emphasis on
a well-defined exit strategy, planned during the early stages of investment,
that can be realized within 3 to 5 years.
What are Tene's competitive advantages?
- Expertise in the Mid-Tech and Kibbutz Sector – The management team
has seasoned knowledge of and experience in the Israeli mid-tech
sector, in general, and in kibbutz companies, in particular. The team
possesses unique know-how and experience in providing individualized
guidance and solutions for the particular needs required to develop and
grow kibbutz enterprises. This entails both understanding the
complicated social and communal ownership structures in which kibbutz
enterprise is based, as well as obtaining the trust of the community in
guiding them through the financing and expansion that is required to
maximize value.
- Systematic Assessment Methodologies – The investment team's
disciplined, systematic approach in assessing investments has
characterized its historic investment activities. This enables the team to
differentiate among similarly-placed companies and identify those that
offer the best value proposition.
- Value-Added Management Approach – Throughout the portfolio lifecycle,
the management team adds value by guiding portfolio company
management in a range of activities including:
- Strengthening the management team;
- Optimizing the enterprise’s financial structure;
- Creating realistic financial, operational, and sales milestones;
- Identifying business development opportunities;
- Identifying and assessing mergers-and-acquisitions opportunities
and strategic initiatives; and, - Implementing Tene's investment philosophy by at all times working
towards preparing the company for a successful exit and
constantly devising and seeking out such an exit, to be utilized at
the appropriate time.
- Reputation – The Principals believe they have developed a strong
reputation as an effective financial and strategic partner. The Principals
are highly regarded within the Israeli economic and social communities
that serve as its deal base. The reputation of the Fund and its Principals
attracts deal flow from industry executives and community enterprise
managers. This affords the General Partner a unique opportunity to
identify and invest in opportunities before they reach the broader market.
Collaborative Management – The General Partner's expertise and
reputation create an atmosphere of genuine collaboration. Portfolio
companies welcome the guidance of the Principals, affording the General
Partner significant input even as a minority shareholder. The Principals'
immersion in the details of the company over a long period of time even
prior to investment creates a genuine partnership that can result in the
removal of management-investor tension.
- Synergy – Tene comprises an experienced and cohesive investment
team with the depth and variety of skills and expertise necessary to
create a critical synergy within a collaborative environment.
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