Yotam Alroy Launches $25 Million Pitlane Fund for Family Business Buyouts
Updated
Updated · CTech · Jun 28
Yotam Alroy Launches $25 Million Pitlane Fund for Family Business Buyouts
1 articles · Updated · CTech · Jun 28
Summary
$25 million Pitlane Capital has begun raising money in Israel to back search funds that acquire small family-owned businesses facing founder retirements and no clear successor.
An initial closing has already brought in angel investors, fund managers and family offices, with Alroy joined by operating partner Omer Ben Shach, who has made more than 60 ETA-sector investments.
Pitlane will not buy companies directly; it will spread capital across entrepreneur-managers who each pursue one profitable target, then run it and upgrade operations after the acquisition.
The strategy follows the U.S. ETA model, where a 2024 Stanford study found a record number of search funds launched in 2023; median deals were $14 million and reported returns averaged about 35%.
Alroy, 46, co-founded Mindspace 12 years ago and is bringing a niche private-equity-style approach to a market still under $1 billion in annual transaction volume.