IBI CCF, which has been active since 2014, is Israel’s first and largest fund involved in consumer credit in the US, which is done using a P2P platform. It is an investment channel with relatively low fluctuation, even during times of crisis. The loans are short term and highly diversified, according to numerous parameters, including the area in which the borrower lives, the borrower’s occupation, etc. The fund uses a technology platform that was developed by IBI Investment House, through which it locates, examines and selects the loans in which it invests. Through e-commerce arenas, the fund acquires US consumer loans with a high credit score.
IBI Alternative Investment Funds
IBI alternative investment funds offer a variety of alternative investment solutions in Israel and overseas, in a diverse array of fields, including income-producing real estate in the US, short-term credit backed by real estate assets in Israel, consumer credit in the US and more. Alternative investment funds continue to gain momentum as a way to increase diversification and distribution of an investment portfolio, and they can help reduce the fluctuation of the property portfolio and reduce its exposure to the ups and downs on the capital market.
Our Alternative Investment Solutions
Investing in Income-Producing Real Estate in The US, With Broad Geographic Distribution and in Various Sectors
Since 2015, the comRit fund has been investing in income-producing real estate in the US, with a broad geographic and sectoral distribution. It is a fund that invests in US real estate investment trusts (REIT), which make it possible to invest in diverse income-producing real estate. The fund works in cooperation with leading property management companies in the US, each in their own field. ComRit specializes in income-producing real estate, which is characterized by a low correlation with the capital markets and low fluctuation relative to the stock market.
Fund That Invests in Short-Term Loans for Entrepreneurs Who Renovate Homes in The US
The IBI SBL fund has been active since 2017 and invests in short-term bridge loans for entrepreneurs who renovate homes in the US. The borrowers are entrepreneurs who are seeking credit to renovate a property in order fix and flip or fix and rent. The loans are extended with relatively high interest, and the real estate asset serves as full collateral for the loan. The fund locates, examines and selects loans that have the best risk/reward ratio. The fund examines each transaction, while considering approximately 30 different parameters, including the borrower’s experience with previous projects, quality of the local real estate market, number of transactions concluded in the area, price trend in the area, and more.
IBI CLO Strategies
Investments in collateralized loan obligations (CLOs), securities backed by a pool of senior secured corporate loans
The fund invest in collateralized loan obligations (CLO), actively managed securities backed by a diversified pool of senior secured corporate loans that deliver a predefined cash flow. The fund invests in the debt and equity tranches of CLOs, across primary and secondary markets in the US, and in warehouses established by top-tier organizations in the CLO industry.
The fund’s purpose is to enable qualified Israeli investors access to the CLO market, which provides exposure to the U.S. corporate finance EcoSystem, as an alternative to the traditional corporate bond market. According to historical data, this market achieved surplus yield over the traditional corporate bond market, while according to the global rating agencies’ data, the total rate of default in the various CLO tranches is lower compared to corporate bonds with the same rating. Additionally, the fact that the CLO instruments are backed by loans with variable interest provides these instruments with an advantage in a rising interest rate environment.
A Special Fund That Is the First of Its Kind in Israel, Which Invests in Short-Term Bridge Loans Extended to Large and Leading Real Estate Companies in The US
A special fund that is the first of its kind, which is engaged in short-term financing for some of the largest and leading real estate companies in the US income-producing real estate market. The purpose of the fund is to provide financing to real estate companies for acquisition of income-producing real estate. Other advantages of investing in the Volcano fund include seeking tenants with a high credit rating, distribution among a large number of companies that specialize in income-producing real estate in the US, short-term financing and work directly with real estate companies without brokers.
Investment in Non-Bank Bridge Loans Extended Against Real Estate Collateral
IBI QCF is an investment fund that invests in short-term non-bank bridge loans, which are extended in Israel and secured through a lien on real estate assets. A shekel-based fund that is not exposed to the fluctuation of foreign currency, which identifies short-term financing opportunities and extends credit backed by real estate collateral, characterized by high interest.
Investment fund for businesses in Poland, which specializes in investment in nonbank bridge loans
IBI TEVEL is a fund for loans to businesses in Poland, which specializes in investments in short-term, non-bank bridge loans backed by a first lien for real estate assets. Through the fund, investors benefit from a credit line provided to a local Polish underwriting company founded and controlled by IBI Investment House. The local underwriting company identifies short-term financing opportunities and extends credit backed by real estate collateral. All the assets and borrowers undergo strict due diligence. The funds makes it possible to invest in large-scale and highly diversified financing activity in Poland and offers fixed interest, a shekel-denominated investment, without exposure to foreign currency and a reduced tax rate of 15%.
European REIT in Israel That Invests in Quality Income-Producing Real Estate in Spain and Europe
IBI LION is a European REIT in Israel that invests in quality and occupied income-producing real estate in major cities in Spain and Europe, with long-term leases and tenants in the fields of logistics, retail and HQ. The fund is incorporated as a Spanish REIT (in accordance with SOCIMI rules) and is expected to be registered for trade on the secondary market in Spain. The fund benefits from a special tax regime in Spain. Investment in the fund will enable the investors to benefit from regular dividends (paid from rents on the properties). Management services to the fund will be provided by an Israeli management company controlled by IBI Investment House Ltd.
Investment in Financing for Israeli Startups
SPIKES finances startups through a unique mode called RBF (revenue-based financing). This financing model is growing at a tremendous pace in the US and is now being offered for the first time to investors in Israel. RBF is characterized by significant adaptation to the needs of the companies. In exchange for financing, the company returns a fixed percentage of its revenues (royalties) for a predefined period of time, without the taking the risks of a lien (such as bank financing) or diluting the existing shareholders (such as with equity financing). Selection of the companies to receive financing and the terms of the transaction are done through a unique underwriting process that was developed in the US and has already been used to underwrite hundreds of similar transactions. This underwriting is based on mathematical models for analysis of startup risk, examination of historical cash flow and forecasting of future cash flow. At the end of the process, the specific financing terms for each company are determined, reflecting on the one hand the risk in the transaction and on the other hand that needs of the company.