Recurring Revenue 2025
~230M ₪
Dividends + interest
Fair-value revaluations 2025
594M ₪
Non-cash
Investment areas
4
Energy + Environment + Water + Transport
Cash/revaluation ratio
28%
230 / 824
Structure
Infrastructure fund
Unique model in Israel
1 Company Profile
Generation Capital (GNRS) is an Israeli investment fund specialising in infrastructure. Generation Capital is one of the few publicly traded infrastructure funds in Israel — a unique model providing private investors with access to a portfolio of infrastructure projects typically available only to institutional allocators. The company invests across Energy (solar, gas, power), Environment (waste, recycling), Water (desalination, purification), and Transport & Logistics. Market capitalisation: ~NIS 4.165B. Traded on TASE. Revenue model: acquiring stakes in infrastructure projects, generating ongoing cash flow (dividends, interest), and realising capital gains. 2025 revenue: ~NIS 230M recurring income + NIS 594M fair-value changes (non-cash).
| Segment | Profile | Trend |
|---|
| Energy (solar, gas, power) | Core part of portfolio | Growing |
| Environment (waste, recycling) | Environmental projects | Growing |
| Water (desalination, purification) | BOT projects | Stable |
| Transport & Logistics | New acquisitions | Growing |
Source: 2025 Annual Report (P1729808-00)
2 Key Financial Observations
This summary is not a recommendation. It is a factual list of key financial metrics.
ביצועים 2025
| Metric | Value |
|---|
| הכנסות שוטפות | 230M ₪ |
| שערוכי שווי הוגן | 594M ₪ (Non-cash) |
| סה"כ "רווח" כולל שערוכים | 824M ₪ |
| Cash/revaluation ratio | 28% |
פילוח השקעות
| תחום | תכונה |
|---|
| אנרגיה | סולארית, גז, חשמל |
| סביבה | פסולת, מיחזור |
| מים | התפלה, טיהור |
| תחבורה | לוגיסטיקה, BOT |
| Structure | קרן ציבורית — מודל ייחודי |
Missing data: FFO/AFFO לא מוצג נפרד, LTV מאוחד דורש סקירה, פילוח NAV לפי פרויקט מוגבל, אופי הנכסים שייצרו 594M שערוכים.
הכנסות שוטפות vs שערוכים (₪M)
3 Industry & Competitive Context
קרן השקעות בתשתיות. דפנסיבי — חוזים ארוכי טווח עם רשויות. תחרותי עם חסמי כניסה משמעותיים (הון, מומחיות, רגולציה). מגמות: מעבר לאנרגיה ירוקה, ריבית גבוהה (מייקרת מימון פרויקטים), צמיחת אוכלוסייה בישראל, רגולציה סביבתית מחמירה.
| מתחרה | טיקר | הבדל |
|---|
| אלומיי קפיטל | ELLO | אנרגיה מתחדשת בלבד, פחות מגוונת |
| אנלייט | ENLT | גדולה יותר, סולארית ורוח |
| OPC אנרגיה | OPCE | חשמל קונבנציונלי + מתחדש |
| דליה אנרגיה | — | שחקן קטן יותר, אנרגיה בלבד |
4 Risk Factors
| סיכון | הקשר |
|---|
| תלות בשערוכים | 72% מההכנסה ב-2025 הייתה שערוך לא-מזומני (594M) — תנודתי |
| ריבית | פרויקטי תשתית מתומחרים לפי DCF — רגישות גבוהה לריבית |
| רגולציה | שינוי מדיניות ממשלתית באנרגיה ירוקה ישפיע ישירות |
| מורכבות פורטפוליו | קשה למשקיע לעקוב אחרי כל פרויקט |
| תלות בעל שליטה | Structure holding |
| מצב ביטחוני | פרויקטי תשתית רגישים לאירועים גיאופוליטיים |
5 Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses.
This framework is intended to structure analysis, not to produce an investment conclusion.
Growth
הכנסות שוטפות 230M ₪. כמה צפוי לגדול ב-2026? כמה New acquisitions מתוכננות?
Profitability
Recurring income of NIS 230M + NIS 594M fair-value revaluations. What is the cash-to-accounting ratio? What is the internal IRR on projects?
Leverage
Infrastructure funds typically carry high leverage. What is the consolidated LTV? How does it compare to international funds?
Competitive Position
מעט קרנות תשתית ציבוריות בישראל. עד כמה היתרון Stable מול קרנות מוסדיות פרטיות?
Management Quality
Execution in 2024-2025. How much of AUM growth is organic versus market timing?
Business Complexity / Risk
Four segments. How should an investor build an SOTP? How volatile are the fair-value revaluations over time?
6 Scenario Framework
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.
Constructive Scenario — if the following conditions hold:
The aggressive transition to green energy continues, declining rates support project values, and new acquisitions succeed. Recurring revenue grows 15-20% annually.
Base Scenario — if current trends continue:
Recurring revenue grows 8-12%, revaluations remain volatile, AUM grows 10-15% annually.
Adverse Scenario — if the following risks materialise:
Rising rates pressure project values (-15 to -20%), policy changes in green energy, or difficulty financing new projects.
Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.
7 How to Think About This Company
Generation Capital is not a typical company — it is a publicly traded infrastructure fund, a rare model in Israel that grants private investors access to infrastructure projects. The first insight is that this is not "a company equity" but rather "a unit in a fund" — it should be valued via SOTP (sum of parts), not P/E. The real question in analysing GNRS is not "is the company profitable" (it is), but rather "what is the ratio of the fund’s asset value (NAV) to market capitalisation, and how much of the annual revaluations represent real cash flow versus accounting value?"
The critical variables are three. First, the ratio of recurring revenue to revaluations. In 2025 the ratio was 230/594 = 28% — meaning only 28% of income is cash flow; the remainder is revaluation. Second, the pace of new acquisitions. Infrastructure funds do not grow without acquiring new projects. Third, interest-rate sensitivity. Every infrastructure project is valued via DCF — a 100bp rate rise can reduce value by 10-15%.
Where the analysis may go wrong. First error — treating the NIS 824M "comprehensive income" in 2025 (230+594) as cash flow. Most of it is revaluation, not cash. Second error — valuing GNRS as an "energy equity". It is not — it is a fund with four different domains. Third error — assuming fair-value earnings trajectory for the long term. Fund results depend on acquisition timing and capital raising.
What distinguishes professional analysis of GNRS. Professional analysis addresses three things: (a) the gap between NAV and market capitalisation (discount or premium); (b) portfolio sensitivity to Bank of Israel rates; (c) the ratio of dividends paid to recurring cash flow — whether the dividend is backed by real earnings or by revaluations. These are not what one buys — they are what one asks before deciding.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
8 Sources & Data
| # | Source | Date | Type |
|---|
| 1 | ג'נריישן קפיטל — דוח Annual 2025 (P1729808-00) | March 2026 | Official — TASE |
| 2 | maya.tase.co.il | April 2026 | Official — Stock Exchange |
| 3 | Bizportal / Investing | Ongoing | Secondary |
Missing: FFO/AFFO לא מוצג נפרד, LTV מאוחד דורש סקירה, פילוח NAV לפי פרויקט מוגבל, אופי הנכסים שייצרו 594M שערוכים.
