Although there is not a lot of information out there, it can be confirmed that Turkven has closed its second fund. Posted in October in the WSJ (for subscibers), the TPEF II buyout fund is predicted to be a whopping $428 million, "which is 10 times the size of its 1st fund which closed at $44 million in 2002".
For a Turkish private equity fund, this will be the largest increase in fund size ever achieved through a second fund raising. It is also interesting to note that with the crisis in 2001 and with the formation of their first fund in 2002, they may have had to overcome a currency crunch with some of their deals as well as reassurances to their LPs regarding Turkey's economic problems at the time. It's amazing to think that despite any negative issues that may or may have not occured, the demand for and outlook of Turkey has still kept investors and LPs positive. With this second fund closing, it appears that these volatile issues have passed. In addition, their relationship with Advent International will continue.
According to the International Finance Corporation (IFC) website and synopsis of the Turkven deal, their investment will comprise of some €20 million. This synopisis/project description/letter of intent is quite telling concerning Turkven's focus, strategy and relationship with the IFC. The IFC has been affiliated with Turkven since their first fund.
Finally, we come to what is officially stated on the Turkven website concerning the deal.
TURKISH PRIVATE EQUITY FUND II (2007)
So we know the IFC has committed €20 million and I can confirm that the EIF has committed €10 million as stated at the ÖDTÜ Entrepreneur Investor Summit in early November. With Turkven closing $400M+ and (according to Deloitte's PE in Turkey Report) Actera looking to close their second round at $400M+ with their fund this year (can we confirm AccessTurkey/iLab as well?), the Turkish private equity pool just got a lot larger. Once again, this proves the appetite for the Turkish PE deals and investment is very promising as conditions appear to be good. This also means we will see a lot happening in the small-mid cap buyout market in the next three years. I still must ask, "where is the venture space?" to fill the equity gap, but that is beside the point. Nonetheless, congratulations go to Turkven.
TPEF II has commitments from over 15 global investors, who have invested in Turkven's strong track record and first mover status in the Turkish market.
On a side note,
I would just like to say that Grandstanding Traction and myself are in no way affiliated with Turkven Private Equity. That should take care of any rumours regarding Turkvcanalyst. If you are interested in who I am, please drop me a line at: Turkvcanalyst(at)gmail(dot)com
Technorati Tags: Venture Capital, Turkven, Private Equity, Fund Closings, IFC, Turkey, EIF
Labels: Fund Closings, fundraising, Private Equity, Turkven, Venture Capital