WHERE WE INVEST
Where We Invest
One region, and the industrial businesses inside it.
What region does Fronterra focus on?
Israel’s southern periphery — the Negev and the Gaza-envelope communities. It is an industrial region: food and agricultural processing, light and medium manufacturing, metalwork, plastics and packaging, much of it supplying national customers from plants that have been in the same family for two generations.
It is also the part of Israel institutional capital has most consistently skipped, which is the reason we are here rather than a caveat to it. The businesses are real, the customers are real, and the price of entry reflects the fact that very few funds are looking.
Industrial manufacturing
Precision engineering, metalwork, plastics, packaging and assembly — businesses that make a physical product to a specification for a named customer.
Agri-industrial processing
Growing, processing, packing and cold chain at industrial scale, including protected and controlled-environment agriculture.
Infrastructure and industrial services
Businesses that build, maintain or supply the physical infrastructure the region and its industry run on.
Does the state support investment in this region?
Substantially, and through published programmes rather than discretion. A Preferred Enterprise operating in Development Area A pays company tax at 7.5% against 16% elsewhere in Israel, and an Approved Enterprise there may receive a grant of 20% of an approved fixed-asset investment. Programme eligibility is specific to the business and the investment, and nothing here is tax advice — but the effect on the economics of a plant upgrade is large enough that it belongs in the investment case rather than a footnote.
7.5%
Company tax in Development Area A
16%
Company tax elsewhere in Israel
20%
Grant on approved fixed-asset investment
What Fronterra does not invest in
We do not invest in pre-revenue companies, in software businesses, or in turnarounds. We do not currently hold a defence-technology investment, and we do not describe ourselves as a defence fund. If that changes, this page will say so.