A new Israel-focused private equity firm, David Group Capital Management Ltd., has launched in Herzliya with plans to invest in and scale mature Israeli and Israel-related companies.
The firm, founded by Stella Cohen and chaired by former Goldman Sachs partner Raanan Agus, said it would focus on companies that are Israeli-founded or led, have significant activity or assets in Israel, or operate in sectors where Israel has developed strong expertise.
David Group said it had secured significant capital ahead of its launch, though it did not disclose the amount.
The firm will invest primarily in four sectors: financial services, defense, industrials, and tech-enabled business services. Its stated aim is to apply international private equity experience and sector expertise to parts of the Israeli economy that have received less attention than the country’s high-tech sector.
“Israel’s non-tech economy has been somewhat left behind, compared to the ‘Startup Nation’ success story,” Cohen, David Group’s founder and managing partner, said. “Private equity investments can help many Israeli non-tech businesses to upscale, transform, expand internationally, and create long-term value.”
Investing in Israel
Cohen said the firm was created out of her interest in both investing and Israel.
“David Group was born out of two great passions of mine: investing and Israel,” she said. “Israel is a country of unique talent and the country where I chose to live with my family. I am excited to partner with Raanan, and together we are proud of the team we have assembled.”
Agus said the firm was positioned to contribute to both the Israeli business community and the global private equity sector.
“Stella, the team, and I believe in the bright future of the Israeli economy after it has demonstrated remarkable resilience and growth across economic and geopolitical crises and wars,” Agus said. “The strength and caliber of the investment team and the Strategic Advisory Board give me great confidence in our ability to execute on our shared vision together.”
Cohen has more than 20 years of experience in global mergers and acquisitions and private equity investing. She previously served as co-head of private equity for Europe, the Middle East, and Africa at J. Safra Group, worked in private equity direct investments at La Caisse de dépôt et placement du Québec, and was a senior M&A attorney at Wachtell, Lipton, Rosen & Katz in New York.
She also served as a board member of Phoenix Financial, one of Israel’s largest financial institutions, until March 2026.
Agus spent 32 years at Goldman Sachs, including 24 years as a partner. His roles included global co-head and co-chief investment officer of Goldman Sachs External Investing Group, head of direct alternatives at Goldman Sachs Asset Management, founder of Goldman Sachs’s SPAC investing business, and global co-head of Goldman Sachs Investment Partners.
David Group’s founding team includes Bar Mor, a former partner at Kedma Capital, and Lila Frenkel, a former partner and CFO at MoreVC.
The firm also announced a strategic advisory board comprising Israeli and international business figures. Members include Matthew Botein, co-founder and managing partner of Gallatin Point Capital and former co-head of BlackRock Alternative Investors; Eli Groner, CEO of the Future of Israel Foundation and former director-general of the Prime Minister’s Office; Eugene Kandel, chairman of the Tel Aviv Stock Exchange and former head of the National Economic Council; Cindy Levy, senior partner at McKinsey and founder and co-leader of the firm’s Global Geopolitics Practice; Michael Olshan, founder and managing partner of O-Corp and a board member of Delfin Midstream, Olshan Properties, and the New York Yankees; and Joseph Weiss, former president and CEO of Israel Aerospace Industries.
David Group said it aims to partner with Israeli businesses operating globally as well as international private equity firms seeking to navigate Israel’s business environment.