About Profimex
Profimex is the private equity real estate arm of Bamberger-Rosenheim Ltd., founded in 1969 by Hella Rosenheim (Bamberger) may her memory be a blessed, and Elchanan Rosenheim.
Profimex has invested in assets valued at more than $56 billion since its inception. We specialize in diverse cross-border investments and serve high-net-worth individuals (HNWI), private and public companies, and institutional investors. The investment threshold for private investors is between $100,000 and $500,000.
Profimex’s investments are executed through experienced overseas partners with a proven track record and deep familiarity with their local markets. Our diverse range of investments spans multiple countries, sectors, strategies, and structures.
Profimex makes equity and debt investments through specific projects, co-investments, joint ventures, and funds of funds. We are committed to maintaining our alignment of interests with our investors, and we adhere to the principle of success-based reward for managers in all our investments.
Accumulative Knowledge
Profimex’s experience and knowledge have been and continue to be built through our investment in thousands of assets throughout our 28 years in the global real estate arena with our local partners. This has enabled Profimex to access and execute countless unique private equity opportunities.
By constantly accumulating and processing information, we have managed to maintain our position as a leading source of knowledge in our investment areas. Profimex’s ambition to be a rich base of knowledge and information continues to be achieved thanks to several ongoing processes:
- Constant and consistent learning
- Exposure to professional and academic studies by leading global research organizations
- Identification of investment trends among global institutional investors
- Monitoring of correlations between real estate and other portfolio investment allocations
All of the above points are summarized in the Profimex GlobaLink newsletter for investors and simultaneously factored into the development of our investment products and the decision-making process in our investment committee.
Profimex does not normally intend or seek to interfere in the management of its investments. We conduct a rigorous, intensive due diligence process in evaluating potential partners. These partners are experienced professional real estate investors with many years of activity in their local markets. If Profimex feels the need to monitor these partners and an investment actively, this generally indicates that a mistake was made in assessing its partners. When it participates in an investment, Profimex believes that it has management partners that will run the business efficiently, allocate capital prudently to grow value, and ultimately seek paths to add value to the investment. In a vast majority of our investments, our partners have proven themselves capable. In exceptional cases requiring our involvement in managing an investment, we have not spared any effort or financial resources to bring the investment to a safe harbor.
Investment Committee
Profimex’s Investment Committee reviews each investment opportunity after it has already passed the meticulous scrutiny of our partners. Profimex has the right of first refusal for each investment opportunity proposed by its partners. This is a basic foundation for maintaining its alignment of interests with investors.
These opportunities are evaluated using an elaborate model that weighs economic indicators and the economic strengths against the risks, providing a unique tool for evaluating each transaction’s feasibility. Based on data reported by our local partners, the model assesses predicted cash flows, leverage, the business plan’s working assumptions, and other key factors.
The committee reviews each potential investment based on a leverage-based analysis and a strictly equity-based analysis. This is done to discount extraneous factors and examine the economic logic behind the fundamental real estate investment more diligently, keeping in mind that the levels of leveraging and financing costs have a decisive impact on risk and predicted ROIs.
In addition to specific financial evaluations, the committee’s final feasibility decision is based on a review of the macro- and micro-environments of the markets, taxation, legal considerations, and all the relevant ramifications for its investors..
Profimex’s investment committee includes experienced professionals with extensive backgrounds in accounting, economics, finance, law, and management. Chairperson Itzik Gidron has dozens of years of experience as a senior executive in local and global firms, has taught in academic institutions, and has been a real estate investment manager in Israel and overseas for the past 20 years.
Investing in a project requires a consensus of all the committee members. Profimex’s managing director, Elchanan Rosenheim, has the right to veto committee decisions but is not a committee member. This maintains the members’ professional objectivity and prevents any decision-making bias.
Our Investors
Private Investors
Our private investors are high-net-worth individuals (HNWI) looking for exclusive investment opportunities who can meet the entry threshold of $100,000 to $500,000 per individual investment.
With full transparency and an alignment of interests, Profimex provides investors with access to investments not readily available to them as independent individuals. Additionally, our investors receive comprehensive updates throughout the investment’s lifecycle, including regular meetings with investment managers. Our investors diversify their portfolios with direct investments as well as investments in funds, covering a wide range in terms of geographical region, sector, and management.
To invest with Profimex and its partners, an investor must qualify as an accredited investor. An accredited investor is an individual with a net worth of at least $1 million, not including primary residence value, or an individual with an annual income of at least $200,000 (or $300,000 combined income with a spouse).
Institutional Investors
Institutions that manage plan-holder, client, and nostro accounts have invested hundreds of millions of dollars worldwide with Profimex. Institutional investors working with Profimex include insurance companies, pension funds, provident funds, education funds, banks, and public and private corporations, all of which have diversified their portfolios through funds, funds of funds, and direct investments.
Profimex specializes in customizing investment solutions for institutional investors’ long-term strategies and tailoring investment vehicles to investment committees’ requirements and boards, all subject to regulatory requirements.
Profimex VCA
Profimex VCA (Valuation, Consultation & Advisory) is a Profimex subsidiary providing business, financial, operational, and real estate consulting and support.
Profimex VCA provides its clients with consulting services based on field expertise, a comprehensive, integrative perspective, and a solid commitment to achieving effective results.
The consulting process enables clients to identify obstacles between the business and its success. It also provides focus and purpose and offers practical know-how and tools to help the business improve its performance and meet its goals.
Profimex VCA is headed by Itzik Gidron, who has dozens of years of experience in managerial positions in both public and private companies. The company’s operations are managed with the close collaboration and support of Profimex’s managing director, Elchanan Rosenheim, who has global managerial and business experience in a variety of areas. VCA’s staff includes experts from various disciplines, including industrial engineering, law, accounting, economics, and management.
Track Record
Data regarding annualized total return from exited investments are available
only to accredited investors, as defined by the Israel Securities Authority.
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Private equity real estate investment focuses on value creation over a period of several years (generally three to seven). Unlike investments in capital markets, which are generally measured based on short-term results, real estate investment performance should be judged only according to the realization results. In real estate private equity, most of the investment manager’s efforts are driven by a long-term goal instead of the short-term operating results that shareholders may be interested in.
Corporate executives are under constant pressure from investors and shareholders to meet short-term earnings targets and report successful periodic performance. These managers may also have a personal interest in the stock price as shareholders or through share-based incentive compensation. Private equity investors should be aware that interim reporting results do not affect managers’ compensation and that most of their time and efforts should focus on long-term value creation.
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