Migdal Joins Ruby Equity as a Partner in Financing Residential Projects

Migdal joins Meitav, Leumi Partners and Hachshara Insurance as a major investor in the Sapphire II Fund. The fund has already completed transactions totaling NIS 140 million since its launch last summer.

Mendi Henig | January 18, 2026 | 14:23

Migdal Insurance is joining Ruby Equity’s Sapphire II Fund as a major investor, with an investment commitment of approximately NIS 200 million. Following Migdal’s investment, total commitments to the fund have surpassed NIS 600 million. The fund has also raised capital from other institutional investors, including Meitav, Leumi Partners and Hachshara Insurance, alongside private investors.

The fund reports that demand from potential investors remains strong and that advanced discussions are underway with additional institutional investors to further expand its investment capacity. According to the fund’s management, the fund is expected to exceed its original target and reach a final size of approximately NIS 800 million.

Sapphire II, managed by Ruby Equity, the investment arm of Ruby Capital, focuses on equity investments in residential real estate projects throughout Israel. Since commencing operations in the summer of 2025, the fund has completed transactions totaling approximately NIS 140 million. Its activity focuses on residential projects in high-demand areas and urban renewal developments, based on an in-depth real estate and financial assessment of each transaction and partnerships with experienced developers with a proven track record and execution capabilities.

The fund was established to serve as a financial partner to real estate developers by making equity investments in selected projects, with an emphasis on risk diversification and flexible profit-sharing mechanisms. The Sapphire Funds model enables developers to make more efficient use of their equity, strengthen and expand their existing operations, and avoid ownership dilution. At the same time, developers gain a professional partner that shares in the project’s risks in return for a share of the profits.

Omer Alpern, Partner at Ruby Capital Group, said: “In the past month alone, Israeli real estate companies acquired land through Israel Land Authority tenders totaling approximately NIS 10 billion. The equity required to complete these transactions and develop the projects is increasing the need for partnerships with specialized investment funds and institutional investors. The urban renewal sector is also growing as more projects reach maturity. Developers seeking to advance several projects simultaneously and strengthen their operations increasingly view a partnership with a professional investment fund as a solution that combines access to capital with management expertise.”

Erez Magdali, Chief Investment Officer at Migdal Insurance and Financial Holdings, said: “Joining the Sapphire II Fund represents another step in strengthening and diversifying Migdal’s investment portfolio. We view Ruby Capital as an experienced and professional partner and believe that combining the fund partners’ management capabilities with our financial strength will generate significant value for our members. The fund’s model provides us with exposure to high-quality residential projects in high-demand areas.”