Venture Capital and Private Equity

Portfolio Investments

Yigal Arnon & Co. is highly reputed for the services it provides to venture capital and private equity funds, investment companies, venture lending funds and secondary funds in their portfolio investments or loan transactions. Our practical business approach and skill in looking 'beyond the legal issues' distinguishes us as a dominant firm in this arena. The firm's attorneys have extensive understanding of both the process and the documentation involved in venture capital and private equity financing, enhancing our ability to assist clients in accomplishing their business objectives in an efficient manner. Adding to our effectiveness is our experience in fund formation, secondary transactions, venture lending and mergers and acquisitions. This provides additional insight into the standards by which venture capitalists and private equity professional assess investment opportunities, the types and terms of securities involved as well as the dynamics of diverse investor groups. Our representation of companies receiving investments and loans gives us the wisdom of the other side's perspective in these transactions, enabling us to close deals efficiently and amicably.

Yigal Arnon & Co. represents many prominent Israeli and overseas venture capital and private equity funds in their portfolio investments in Israeli and “Israel-related” companies.  Many of its lawyers have substantial prior experience in venture transactions at leading law firms in the United States, Canada and Europe, ensuring that clients, whether Israeli or non-Israeli, enjoy the highest international standard of professionalism and responsiveness.

In 2010 & 2011 Yigal Arnon & Co. assisted in over 120 venture capital deals, in which approximately US $ 495 million was invested.  

Fund Services

Yigal Arnon & Co. has acted as counsel in venture capital and private equity fund formation and maintenance, assisting our clients to raise hundreds of millions of dollars. The firm provides practical and timely corporate, tax and general legal advice that enables clients to raise private equity and venture capital funds as quickly as the market will allow. Our international networks enable us to work effectively with U.S., European or off-shore legal counsel to provide important advice on Israeli tax and regulatory issues when the need arises, both during and after the fund formation process.

Yigal Arnon & Co. has assisted in or managed the structuring and formation of many leading private equity and venture capital funds, as well as and the extension or restructuring of others, including various transactions where existing funds raised additional capital, whether through annex funds or the creation of preferences within existing funds. Our representation has included representing the general partner forming the fund, as well as the representation of limited partners involved in the funds as primary investors, whether as sponsors of the fund, lead investors or otherwise.

In some cases, Yigal Arnon & Co. provides assistance limited to the establishment of parallel Israeli funds for funds formed overseas (generally in the Cayman Islands), while in others cases the firm has handled the establishment of the primary fund, whether in Israel or abroad.

Venture Lending

Yigal Arnon & Co. has acted as counsel in many venture lending and debt financing transactions. We regularly represent venture lenders and financial institutions both in Israel and across the globe, and have a reputation for solving complex cross-border issues. Our practice includes diverse types of secured, unsecured, mezzanine and other loan transactions on behalf of our clients, including secured and unsecured credit facilities, asset-based lending and workout loans.  As company counsel to high-tech companies in various stages of development, we also frequently represent the borrowers and debtors in these transactions, which gives us added insight into these types of transactions. From our work in this field as well as general banking and finance, our firm has deep experience and knowledge of the regulatory framework affecting these types of transactions and we advise on issues relating to insolvency, regulatory compliance, , tax   and securities laws as they relate to Israeli related credit facilities, drawing upon our partners' depth of experience and knowledge in these fields.  We also have a deep understanding of the various business and legal factors that affect these types of transactions.  Accordingly, we are a valuable source of knowledge for non-Israeli investors and financial institutions which require a clear and concise understanding of the complexities that surround Israeli law in these types of cross-border transactions, which can be quite different from the "home" jurisdictions of these lenders.

Secondary Transactions

Yigal Arnon & co. has substantial experience in secondary transactions in venture capital and private equity funds, including the purchase of holdings across multiple funds and transactions for the purchase or sale of entire portfolios of investment.
The firm represents secondary funds in their purchase of portfolio investments at the company level as well as purchase of partnership interests in venture capital and private equity funds, advising on transactions small and large, whether the purchase of a stake in a single company or across multiple companies. Yigal Arnon & Co. also represents venture capital and private equity funds selling their portfolios in connection with their liquidation.

Venture Capital and Private Equity