Viola collects $250m for tech deals

The firm’s second fund will look to back 10-12 Israel-based growth-stage technology companies

Viola Private Equity, an Israel-based growth capital firm, has closed its second investment vehicle on its $250 million target, according to a statement from the firm.

Viola Private Equity II may remain open up to $300 million, the firm said. The fund received commitments from global institutional investors and family offices from the US, Asia, Europe and Israel.

The fund, which is looking to write cheques of between $20 million and $40 million for investments in 10-12 growth-stage companies, held a first close on $100 million in early September 2014, Private Equity International reported earlier.

Viola’s GP commitment is $27 million, which currently makes up just over 10 percent of the fund. This creates “the perfect alignment of interest,” founder and general partner Harel Beit-On told PEI last October.

Viola invests in growth-stage technology companies across a number of sectors, including enterprise software, eCommerce, cyber security, FinTech and healthcare. The firm has already begun deploying Fund II’s capital, leading a $12.5 million financing for, an eCommerce company that sells prescription eyewear to US consumers.

“Israel is generating a growing pipeline of growth stage companies and this trend presents remarkable opportunities for us, as value creators,” Beit-On said in a statement. “By leveraging the track record of our team members and the Viola Group's ecosystem we aim to turn recognised companies into global tech leaders and accelerate their growth.”

Viola’s debut fund closed on $164 million in 2009. That vehicle also backed 12 companies, two of which have been fully exited and one of which has been partially exited.

The firm sold Israeli wireless network solutions developer MobileAccess to US-based Corning in 2011 and has also exited Israeli water-filtration provider Amiad Water Systems, which is listed on the London Stock Exchange. Viola also listed Matomy Media Group in London in July last year, and subsequently sold a third of its position in the business to French communication business Publicis, PEI reported previously.