* IFC’s Post-Financial Crisis Support of
Turkey Tops $200 million
Washington, D.C. March 13, 2002—The International Finance Corporation,
the private sector arm of the World Bank Group, continues its post-financial
crisis support for Turkey’s private sector with a US$10 million investment
in a new private equity fund in Turkey. The Fund, known officially
as the Turkish Private Equity Fund I, will have a first closing at $41
million. The Fund will be managed by Turk Venture Partners Limited
(“Turkven”), the exclusive Turkish affiliate of global private equity
investment firm Advent International.
Khosrow Zamani, Director of IFC’s Southern Europe and Central Asia Department
said: “There is a need for private equity funding in Turkey, as there
are numerous small and medium sized companies with good fundamentals that
face capital constraints. This new Fund, one of the first of its
kind in Turkey, is expected to create a diversified portfolio of growth
companies in a broad range of industries. Therefore, it should be
able to play an important role in this fledging sector in Turkey.”
The Fund will be working closely with Advent and co-investing with Advent’s
Central and Eastern European program. The other institutional investors
in the Fund are National Bank of Greece, European Investment Bank, the
Netherlands Development Finance Company (FMO), and the German Investment
and Development Company (DEG).
Teresa Barger, Director of IFC’s Private Equity & Investment Funds
Department said: “This investment offers IFC an exciting opportunity to
work with one of the most established names in private equity in Europe
to support and develop one of the first local private equity management
teams in Turkey.”
The Fund will generally look for investment opportunities between $5 million
and $15 million and will pursue a strategy of combining local knowledge
with Advent’s global resources to accelerate the growth of its portfolio
companies, both locally and internationally.
Seymur Tari, Director of Turkven, said: “Turkish companies have high growth
potential, driven both by exports and a sizeable domestic market. There
are a large number of well-run, mid-sized and family-owned Turkish companies,
which are starting to broaden their vision and adapt their strategies to
compete in international markets.”
Joanna James, Managing Director of Advent International’s Central European
operations, said: “Advent, through its extensive experience with companies
in emerging markets across the world, will be a valuable partner for top
Turkish companies with good management teams and aggressive growth plans.
We believe the time is ripe for private equity investment to begin
in Turkey, paving the way for increased foreign direct investment.”
The IFC investment marks the Corporation’s seventh Turkey investment in
less than a year. Since April 2001, IFC has invested more than $200
million in a wide range of companies to help weather the current economic
difficulties. The investments have been aimed at boosting export
revenues, improving efficiency, expanding production, and replenishing
Turkey is an important country for IFC, the fourth largest exposure accounting
for about 4.5 percent of IFC’s global portfolio. IFC’s held portfolio,
including amounts mobilized from commercial banks, is close to $1 billion.
IFC’s program for Turkey continues to be active with investments
in projects of about $400 million.
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people’s lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956, IFC has committed more than $31 billion of its own funds and arranged
$20 billion in syndications for 2,636 companies in 140 developing countries.
IFC’s committed portfolio at the end of FY01 was $14.3 billion.