AGG Targets Israeli Relationships to Procure Capital
Attorneys travel to bring back capital to Atlanta and the U.S.
After 37 years with the Atlanta Journal-Constitution and now with the AJT, , Jaffe’s focus is lifestyle, art, dining, fashion, and community events with emphasis on Jewish movers and shakers.
Arnall Golden and Gregory attorneys Abe Schear and Mindy Planer think globally with their implementation of a strategy to attract international capital to Atlanta and elsewhere in the United States.
“We are known for our extensive collaboration with Israeli companies, business leaders, investors, and law firms, and know many investors and real estate companies in the United States and Israel. Our firm is a multi-disciplinary law firm with a broad range of contacts. Mindy and I have particular experience and offer legal assistance to our Israeli-based clientele with respect to real estate investments, and our partner, Alan Minsk, works with Israeli companies in the biotech arena,” said Abe Schear, who calls his firm’s work arranging connections, “Making Shiddachs.”
The firm’s Israeli practice started in 2005. On a whim, Schear was convinced by a paralegal (who was an Israeli attorney) to fly to Israel in search of business. This proved to be a way to meet contacts who, at the time, were mostly interested in using law firms from New York City. He explained, “This was at a time when about 80 percent of Israeli real estate investments into the United States were New York-centric. Recognizing that the initial plan was fundamentally flawed, the focus became introducing Israeli capital to opportunities, particularly to multi-family real estate companies in the Southeast. Over time, a steady stream of Israeli capital was invested in these platforms.”
As Israeli investors availed themselves of opportunities, they also began to invest in other property types, such as healthcare real estate, industrial properties, retail properties and senior living. The expanded market helped spur the growth of Israeli companies like Buligo, Sage and Faropoint to set up U.S. offices and invest on behalf of American and Israeli investors.
As Schear noted, “Over the 15-plus years of our Israeli initiative, the large law firms in Israel have more than doubled in size (two now with well over 500 lawyers, all of which have moved to new shiny buildings, many of which are 45 floors or more) and the economy of Israel has grown exponentially. The Israeli companies in Atlanta have become more sophisticated, in some cases, quite invisible but very successful. These companies are ambassadors of Israel and are entrenched in our market.”
Recently, Planer and Schear had two dozen meetings in Israel with law firms, investors, and bankers.
Planer noted, “No trip has been more curious than this one. We have been in the country during rocket attacks, when the Israeli navy stopped boats from Turkey and during periods of heightened border tensions. Those circumstances pitted Israel against its neighbors. On this trip, and as a result of the proposed changes in Israeli law related to the judiciary, the less visible but ever-present tension among the various sectors of Israeli society became more easily recognizable and more pronounced. Almost universally, everyone we met with in the Tel Aviv legal and business community was disturbed by the proposed changes and its potential impact on Israeli democracy and the cohesiveness of Israeli society.”
The current political situation, coupled with the global economic downturn, have greatly impacted the Israeli economic outlook as well. Planer noted that, “As a result of the political uncertainty and the general downturn in the global economy, capital into Israel that had been a hallmark of the startup nation economy has slowed significantly. Conversely, Israeli investors have shown heightened interest in deploying capital outside of the country, particularly in the United States.”
Despite the current challenges, the AGG team remains committed to fostering connections between Israeli investors, companies, and law firms, and the U.S. business and legal community. With extensive experience and contacts in both Israel and the U.S., and with over 35 previous trips to Israel, the AGG team plans to continue building bridges between these communities.
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