Key Takeaways
- • Third Point LLC, the $14 billion New York hedge fund led by Dan Loeb, is opening its first international office in Tel Aviv, opening on Monday (October 24, 2022), according to Reuters.
- • The Tel Aviv office will serve as a second hub for Third Point Ventures (TPV), the firm's venture arm, which already operates from Menlo Park, California, to scout investments in data infrastructure, cybersecurity and enterprise software.
- • TPV has made six investments in Israel since 2015, including SentinelOne and Verbit, and Sapir Harosh, who joined from Pitango earlier this year, will lead the office.
- • Third Point's TP Partners fund has delivered a 16% annualized return over 27 years versus 9.3% for the S&P 500, even as the firm posts double-digit losses for 2022.
Summary
Billionaire investor Dan Loeb is expanding his search for early-stage companies by opening an office in Tel Aviv, according to Reuters. Third Point LLC, a New York-headquartered hedge fund with about $14 billion in assets, will open the office on Monday, marking the firm's first international location. For Third Point Ventures (TPV), the firm's venture capital arm, the office becomes a second hub alongside its Menlo Park office in Silicon Valley.
TPV, run by Loeb and Robert Schwartz, provides early-stage capital and hands-on support to companies preparing for public listings. The unit has made six investments in Israel since 2015, including in cybersecurity company SentinelOne and AI transcription and captioning company Verbit. Loeb said the permanent presence reflects a long-standing commitment to the country, citing earlier early-stage investments made from the hedge fund. Sapir Harosh, who served in military intelligence and joined TPV from Israeli firm Pitango earlier this year, will head the Tel Aviv office.
Reuters reports that Tel Aviv has recently become a draw for U.S. hedge funds seeking new investments rather than new investors. General Atlantic opened its own Tel Aviv office in April. Loeb has historically kept his startup investing low-profile compared with firms such as Tiger Global Management and Coatue Management, though he has recently begun highlighting the venture team's contributions. Third Point finished raising its first dedicated venture fund in 2021 and is currently raising capital for a second venture fund, a person familiar with the fundraising said.
The firm is nursing double-digit losses in 2022, driven in part by a selloff in technology stocks including SentinelOne. Nonetheless, its TP Partners fund has delivered an annualized return of 16% over its 27-year lifetime, compared with an average 9.3% for the S&P 500 index.
TPV, run by Loeb and Robert Schwartz, provides early-stage capital and hands-on support to companies preparing for public listings. The unit has made six investments in Israel since 2015, including in cybersecurity company SentinelOne and AI transcription and captioning company Verbit. Loeb said the permanent presence reflects a long-standing commitment to the country, citing earlier early-stage investments made from the hedge fund. Sapir Harosh, who served in military intelligence and joined TPV from Israeli firm Pitango earlier this year, will head the Tel Aviv office.
Reuters reports that Tel Aviv has recently become a draw for U.S. hedge funds seeking new investments rather than new investors. General Atlantic opened its own Tel Aviv office in April. Loeb has historically kept his startup investing low-profile compared with firms such as Tiger Global Management and Coatue Management, though he has recently begun highlighting the venture team's contributions. Third Point finished raising its first dedicated venture fund in 2021 and is currently raising capital for a second venture fund, a person familiar with the fundraising said.
The firm is nursing double-digit losses in 2022, driven in part by a selloff in technology stocks including SentinelOne. Nonetheless, its TP Partners fund has delivered an annualized return of 16% over its 27-year lifetime, compared with an average 9.3% for the S&P 500 index.
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