Carmel Ventures closes third fund on $235m

The tech-focused Israeli firm has rounded up commitments from a heavy-hitting list of LPs, including CalPERS, HarbourVest, Portfolio Advisors and Goldman Sachs.

Israeli venture firm Carmel Ventures has raised $235 million (€160 million) for its third early-stage tech vehicle.

It will continue the strategy of its predecessor, which closed on $200 million in May 2005, by focusing on seed and early stage investments in global information technology-related sectors including semiconductors and software.

Many of the fund’s limited partners are returning investors and prominent global LPs, the firm said. These include JP Morgan, Horsley Bridge, Grove Street Advisors representing the California Employees’ Retirement System, and the Oregon Public Employees Retirement Fund. Also making commitments were The Partners Group, LGT Capital Partners, VPartners, Hamilton Lane on behalf of New York State’s pensions, Goldman Sachs, Pomona Capital, Vintage Venture Partners, Wilshire, HRJ Capital, Bonora and Siemens Venture Capital. They were also joined by HarbourVest, FLAG, Portfolio Advisors, and Knightsbridge.

“We are pleased and appreciative of the strong support we received from such a high quality global investors group,” Shlomo Dovrat and Avi Zeevi, Carmel general partners and co-founders, said in a statement.

LPs also spoke highly of Carmel in return.

Kathryn Abbott, managing partner of Horsley Bridge said: “The team's operating experience and international networks combined with their goal of transforming Israeli technology into global companies are key ingredients in the formula of successful venture capital investing.”

LGT Capital Partners’ Thomas Kristensen said: “We remain committed to Israeli venture capital. As evidenced by the top quartile performance, Carmel's hands on approach and deep networks, position the team very well in the market.”

Carmel was founded in 2000 and manages more than $600 million. It is an affiliate of Viola Partners Group, an Israeli private equity investment group focussed on technology investing in Israel.