Israel Securities Authority Probes Horizon Ahead of Tel Aviv Stock Exchange Listing

The Israel Securities Authority is currently conducting an administrative inquiry against Horizon Investment House, which is seeking to go public through a merger with Blue Wave. According to Blue Wave, the inquiry concerns alleged breaches of trust and prudence under the Law for the Regulation of Investment Advice and Investment Portfolio Management, and remains ongoing. Horizon and its controlling shareholder, Itay Lipkovitz, maintain that they have strong legal defenses against the proceedings.

Merger Details and Valuation

Horizon, which manages approximately 2 billion NIS in assets, is slated to enter the Tel Aviv Stock Exchange next month by selling its shares to Blue Wave, a company valued at just 19 million NIS at the time of the deal announcement. Under the agreement, Blue Wave will initially acquire 49.9% of Horizon shares for 20 million NIS, followed by the remaining 50.1% in eight equal quarterly installments. The total transaction values Horizon at 40 million NIS.

Founded in 2010 by Lipkovitz, who holds all of its shares, Horizon manages portfolios for private clients, corporations, and businesses, as well as managing investments for Ayalon mutual funds. In recent years, Horizon has recorded growth in revenues and profits: its revenues totaled 15.2 million NIS in 2025, compared to about 10 million NIS in 2024. Its net profit surged during this period from 1.5 million NIS to 3.5 million NIS, reflecting a price-to-earnings multiple of roughly 11.5 based on 2025 net income.

Asset Management and Fund Redemptions

As a private investment house, Horizon's total managed assets are not publicly disclosed in full. However, the assets in its managed mutual funds are public knowledge. Horizon operates nine active mutual funds managing a total of roughly 380 million NIS. From the beginning of the year through the end of September, these funds experienced redemptions totaling 645 million NIS, amounting to roughly 63% of their managed assets.

Following the completion of the transaction, Lipkovitz is expected to remain at Horizon and serve as its chief strategist. Under the agreement, he may receive up to 19.9% of his compensation in Blue Wave shares rather than cash. Blue Wave, seeking to expand its operations in fintech and capital markets, plans to fund the initial acquisition through private capital and debt offerings, while exploring options to integrate Horizon with its subsidiary, 24-6 Technologies.