43 different—they are turning to private credit funds and looking at pre-IPO converts or debt.” Guy Ben-Ami at Carter Ledyard adds: ”Definitely cleantech or green tech with $70 billion spent in the last two years. Artificial Intelligence is still in its infancy with new technologies. There are also IPO opportunities from emerging markets. The cost of regulation remains a concern and opens up the possibility of smaller scale financings and the need for creative lower cost solutions (working with smaller to mid-sized law firms).” Bird & Bird’s Michael Dawes added: “We are seeing a lot of interest in the technologies that support the clean energy transition and advance climate change mitigation. In the natural resources sector, there is increased interest from companies developing battery metals projects and battery technologies given the substantial undersupply of copper, nickel and other critical metals and reliance of batteries on those metals. The main concerns for our clients are the timing of IPOs and fundraisings, which are moving very slowly, as well as valuations and certainty of funding when there are broader economic uncertainties.” As for Israel, with the extra pressure of the political chaos surrounding the passing of the judicial reforms, what might the likelihood – and real-world impact – be of any rating downgrade? “There is a lot of interest in the United States regarding the developments in Israel,” adds Pinedo of Mayer Brown. “We understand many companies are evaluating redomiciliation transactions to establish their parent companies in Delaware while keeping their operating companies in Israel. That said, the enthusiasm for, and interest in, the technologies developed by Israeli entrepreneurs and companies remains high. There may have been higher valuations for Israeli companies than for their peers during the valuation run-up in recent years and now the adjustment may seem more dramatic, and observers may be attributing some of the adjustments to other factors, like the reforms or downgrade. However, we see continued equity investment, M&A activity, and a lot of direct lending, as well as more warehouse lending and asset based lending by credit funds.”Guy Ben-Ami at Carter Ledyard: ”I doubt this will affect the Israeli market in the long-term, a market which has proved time and again how resilient and strong it is. The Israeli market remains vibrant as ever. There is always a trendy investment focus and Israel is a leader in both green tech and AI too.”
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