1. FIMI – Ishay Davidi Ron Zuckerman Roy Machnes
FITE
First Israel
Turnaround Enterprise
FIMI – Ishay Davidi
Ron Zuckerman
Roy Machnes

2. The Need
In thriving and depressed financial markets companies run into performance challenges.
Often the existing shareholders and debt-holders (including the major banks) do not posses the necessary skills nor the financial resources to correct the situation
Frequently banks are forced to deal with the leverage issue and write down their loans while assuming operational control
Moreover, currently all of the Israeli private equity sector is focused on mature profitable companies and not on turn-around situations
There are no distressed situations / turn around private equity funds active in Israel

3. The Solution
Establish the first Israeli fund that will have the required skills and focus for turning around mid to large size companies

4. First Israeli Turnaround Enterprise - FITE
FITE is a private equity fund founded by a highly experienced management team with a proven track record of investing, managing and successfully realizing value
FITE brings together three general partners with a unique and complementary set of skills

5. Roy Machnes – Managing Partner
Founder and partner of Mashov Computers Ltd. (Magic, Walla, Babylon, Paradigm Geophysical)
18 years of experience in daily management of high-tech companies
Focused on turn-around in the last 3 years
Completed a number of successful, hands-on, turn-around projects

6. FIMI
FIMI, managed by Ishay Davidi, is the leading Israeli mezzanine and buyout fund. FIMI has proven its ability to increase the value its portfolio companies utilizing its operational, organizational and financial capabilities

7. Ron Zuckerman
Founder of Magnum – one of the most successful investment teams in the Israeli high-tech industry
Proven track record in turning around high-tech companies and creating value to shareholders

8. Investment Strategy
FITE focuses on large companies with revenues > $40M
FITE purchases substantial or controlling interests in target companies
FITE focuses on mature companies (not start-ups) that can be improved through restructuring, better management and improved financial resources
FITE will form, implement and execute a turnaround plan and will maintain an active operational role in its investment companies
FITE will seek to make highly profitable exits through strategic acquirers and financial institutions

9. Deal Flow Chart Deal Flow
Does the company have significant revenues, significant product, expanding market. Define potential improvements
Develop turnaround plan Phase 1
Financial examination of transaction
Due Diligence
Turnaround plan Phase 2
Purchase control
Implement turn-around plan. Stabilize, grow, strategic partnerships
Exit

10. FITE Limited Partnership
FITE - Structure
General Partner
FIMI
Ron Zuckerman
Roy Machnes LP
FITE Limited Partnership LP LP
Target Company

11. The Management Team Managing Partner – Roy Machnes
Associate – Ami Boehm
Investment Committee: Ishay Davidi, Ron Zuckerman, Roy Machnes, Dr. Amnon Goldschmidt (Israel Discount Bank), Robert Joyal (US investors representative) and Avraham Bigger (LP, independent member).

12. Deal Flow
The experience and track record of the management team and General Partner in entrepreneurship, operational management, public offerings, and investment activities promises an extensive deal-flow from numerous sources:
Banks
Investment Companies
Managers
Consultants
Lawyers
Accountants

13. FITE – Financing Amount raised – $130,000,000
Minimum Investment - $5 million.
Terms – 5 years to invest, 7 years full terms, two successive one year extension options
Diversification – maximum of 20% of commitments in any single company.
Financing Completed – July 2004.

14. Thank you For further information contact: FITE GP (2004) Ltd.
3 Daniel Frisch Street, Tel Aviv 64731, Israel.
Tel:
Fax: