Apax Must Be Glad Its Psagot Deal Isn't Closed
Another month, another allegation of massive fraud at a company that recently switched private equity sponsors. This one is Israeli investment house Psagot, which is under investigation for alleged trading impoprieties by former executives David Edry and Shai Ben-David. In a statement, the Israel Securities Authority said: "Edry and Ben David are suspected of having committed fraud in their dealings with securities in a systematic manner that stretched over a long period of time." That time period was 2007 to 2009, when Psagot was controlled by York Capital Management. Late last year, York agreed to sell its 76% stake to Apax Partners for approximately $822 million, with minority shareholder Markstone Capital Partners retaining its 24% position. The deal would
