Herzog Fox & Neeman is recognised as the leading Israeli law firm in the investment funds industry, providing quality service throughout the entire lifecycle of the investment fund, from fund formation to the day-to-day activities and investment transactions. Since the infancy of the investment funds industry in Israel, Herzog Fox & Neeman has been a pioneer, using innovative methods to encourage the growth of the investment funds industry in Israel. Meir Linzen, Herzog Fox & Neeman’s Managing Partner and Head of Tax, was highly involved in the structuring of unique tax arrangements which allowed foreign investors, and later on, institutional investors to invest in Israeli venture capital and private equity funds.

Herzog Fox & Neeman's Investment Funds Department is one of the core practices of the firm. Clients include the most active, leading domestic and foreign investment funds operating in Israel, as well as institutional and private investors and investment managers in a variety of investment fields. The practice is split into two areas: a dedicated team dealing with fund formation, on-going representation of the funds in their day to day operations, and representation of institutional investors and high net worth individuals in their investments in funds; while fund transactions are dealt with by other leading departments at Herzog Fox & Neeman, including M&A, Hi-Tech, Capital Markets, Real Estate, Project Finance and Tax.

With this approach, Herzog Fox & Neeman offers its fund clients a full range of services at all stages of the fund’s life cycle, from the formation of the investment fund through to fund transactions, including:

1. Advising on all aspects of fund formation, such as on the structuring (e.g. suitability of limited partnerships, general partnerships, limited liability companies, or other corporate entities in the Israeli and/or global market, master/feeder structures, parallel funds, blockers, alternative investment vehicles, co-investment vehicles etc.), capitalisation, organisation, fundraising, and all other legal, administrative and operational aspects;
2. Drafting all fund documents, including PPM, LPA, subscription documents, side letters and investment management agreements;
3. Negotiating with fund investors;
4. Drafting placement agent agreements and negotiating with the placement agents;
5. Submission of applications and negotiation with governmental authorities (such as the Israeli Tax Authority and the Israeli VAT Authority);
6. Negotiation between fund managers and drafting partners/shareholders agreements for general partners and management companies and services agreements for the fund managers;
7. Drafting, advising and negotiating investment, loan, sale and merger transactions for and opposite investment funds and advising on appropriate terms for each circumstance;
8. Assisting with the fund's ongoing day to day activities, including writing legal opinions, amendments of the fund documents, opening bank accounts, transfer of interests in the partnership, various tax matters, co-investments, agreements between the fund managers and negotiating the terms of borrowing from banks or other financial institutions (including capital call facilities);
9. Preparing exit strategies for private equity/growth investments, including providing, tax, regulatory, environmental and other related advice in this regard.

The team specialises in various types of funds, including the formation and representation of:

• Private Equity Funds
• Growth Funds
• Venture Capital Funds
• Impact Investment Funds
• Hedge Funds
• Infrastructure Funds
• Real Estate Funds
• Secondary Funds
• P2P Funds
• Cryptocurrency Funds
• Private Debt Funds
• Fund of Funds.

In other cases, the Investment Funds team represents Israeli institutional and private investors in their investments in domestic and foreign funds. The representation includes review of the fund's offering documents, preparation of an investment memorandum, advice on regulatory issues, negotiation on the terms of the investment and drafting side letters.

With extensive experience representing investors, funds and companies in various stages of development, Herzog Fox & Neeman is able to provide creative legal and tax advice and strategies to bridge gaps between investors, funds and companies with differing needs and goals.