Keystone Infra, an Israeli infrastructure investment company, reported a net profit of NIS 32.3 million in the first quarter of 2026, alongside NIS 46 million in dividend distributions already paid this year. This financial performance underscores the ongoing process of privatizing essential services and public resources through a direct partnership with Israel’s national government.
Since its founding seven years ago in 2019, Keystone Infra has generated NIS 924 million in cumulative proceeds for its investors. The company, a member of the TA-90 index on the Tel Aviv Stock Exchange, now holds investments valued at NIS 4.6 billion. Total dividend distributions have reached NIS 286 million, demonstrating consistent surplus extraction from what it terms a “national-infrastructure platform.”
The Privatization of Public Assets
The company’s portfolio, which began as a relatively conservative fund, has expanded to encompass energy, renewable energy, transportation, water, real estate, and digital infrastructure. This diversification represents a systematic acquisition of sectors critical to public life, transforming them into sources of private profit. Keystone has invested NIS 3.1 billion in these infrastructure assets since its inception.
Transportation operator Egged stands as a prime example of this strategy. Meitav’s recent entry as a 10% partner valued Egged at NIS 6 billion, a valuation roughly 22% higher than Keystone’s acquisition price three years ago. Since that acquisition, Egged has distributed approximately NIS 1 billion in dividends, directly transferring wealth generated from public transportation services into private hands. Keystone has further reorganized its real-estate holdings from Egged into a separate subsidiary, maximizing the potential for capital accumulation.
Expanding the Reach of Capital
Energy remains a core component of Keystone’s strategy, with six power plants now grouped under a dedicated subsidiary. Three of these plants are operational, while three are in various stages of development. The IPM plant in Be’er Tuvia, described as one of the country’s most advanced private power stations, is now the site of Keystone’s initial venture into data-center development. Construction is underway on a 40-MW IT data center at the IPM site, directly linking electricity production to the escalating demand for high-density computing and AI-ready infrastructure. Two additional data-center projects, totaling 60 MW IT, are in planning on land owned by Egged in central Israel, further intertwining essential services with the demands of digital capital.
Keystone CEO Navot Bar articulated the company’s vision, stating, “We continue to advance Keystone as a national-infrastructure platform operating in the fields of energy, transportation, real estate, and digital infrastructure.” He emphasized “stable cash flow and consistent dividend distribution,” alongside “enhancing asset value, developing new growth engines, and preparing for the demand of the coming decade—led by rising needs for electricity, data centers, and AI infrastructure.” Bar’s statements confirm the company’s focus on maximizing returns from these essential sectors, with a long-term goal of doubling Keystone’s equity to approximately NIS 4 billion by 2030, four years from now. The “steps advanced during the quarter,” he noted, include “promoting and realizing value in the energy, transportation, and communications platforms, and advancing real-estate activity and continued value realization in Egged,” all contributing to this goal of accelerated capital accumulation.