| CFK Partners Launches with Turkish Focus |
| 27 April 2008 |
In my correspondance with CFK Partners and the post in regards to their acquiring a stake in Vakif Girisim, I was able to secure some information regarding their plans and focus for Turkey. I do not know how helpful this might be for my readers due to the clarity of the email response, and for that I apologize.
Here's how the emailed questions were answered:
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Important Note:
Acquisition of Vakıf Girisim, will be valid following the approval from Capital Markets Board of Turkey (CMB).
Our Investment Strategy, Investment Focus, and Growth Scenarios will be valid in the case of approved acquisition.
How does the acquisition of Vakif Girisim fit into CFK's strategy?
Along with the other products/services, CFK & Partners overrates Venture Capital with corporate social responsibility point of view.
CFK & Partners thinks that most of the innovative ideas come to the scene at the universities and at the Techno Cities organized by TUBİTAK, but financing is very limited to turn these ideas into commercial and industrial investments.
In this concept, our company plans to support innovative ideas –(that have high potential to compete with its rivals/peers with in the country or outside the country ,and suitable for our investment strategy)- to be beneficial for the Turkish economy and to promote young, successful entrepreneurs by providing finance & managerial support.
The reason behind the CFK acquisition of Vakıf Girişim
Vakıf Girişim was founded at 1996, and it was the first Venture Capital Company in Turkey. That’s why CFK has a strong desire to keep the Vakıf Girişim afloat; and also CFK believes that the business is highly compatible with CFK’s targets.
What is your investment focus and strategy?
Investment Focus:
Projected to invest at all the niche areas and sectors, with a focus on: technology, Internet Media, Food, Logistics (focus on warehousing), Health, Energy, etc.
Investment Strategy:
- Start-up and Early Stage investments
- Pre-IPO investments (invest before 6 months -1.5 year, and exit with IPO)
- Co-Investments (invest with more than one international VC companies)
- Invest within crosswise sectors
- Founded new VC companies , to spread the risk, and to invest together (If technically applicable)
What will be your plan for growth of your portfolio? How many investments are you planning? How will you find dealflow?
- To invest in more projects; after achieving acceptable growth rates; we want to invest in min.5-6 projects for an amount of $4-6 million.
- Plan to invest with 10% of our portfolio in projects as “angel investor” , to reach our mentioned target we plan to:
- Collaborate with universities (esp. engineering faculties),
- Hold conferences
- Organize contests to promote new ideas
- Provide computer software for on-line application documents
- Plan to get help form consulting firms, to reach our goal in an effective and efficient way. (Especially we want get help from “Venture Capital Portfolio Management Firms, that has been practical with August -2007 CMB announcement).
- Plan to take a share from existence venture capital firms.
- To diversify our portfolio, we can invest in the companies that are currently listed at ISE.
Labels: CFK Partners, fundraising, Vakıf Girişim
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| CFK Partners Joint Venture With Multinet Buys Stake in Vakif Girişim |
| 30 March 2008 |
Beating out heavy contenders like Global Yatırım Holding to buy a stake in VakifBank's Venture Capital Unit, Vakıf Girişim Sermayesi Yatırım Ortaklığı A.Ş., CFK & Partners in a joint venture with Multinet Kurumsal Hizmetler A.Ş, has bid to pay 3.13 milyon YTL for 31.15 percent.
According to the report by the TDN, Global made an offer to buy 31 percent of Vakıf Girişim. Although the details are few, shares jumped for Vakıf Girişim on the Istanbul Stock Exchange following the announcement, valuing the trust at YTL 7.9 million ($6.6 million).
This block sale of Vakıf Girişim had been announced previously. VakıfBank decided to sell its stake in Vakıf Venture Capital Investment Trust via block sale to domestic or foreign-based investors. Vakif Girişim's deals have been fairly unpublicized, and as of late, it was thought that they were no longer pursuing deals. But as it turns out, the controlling shareholders of Vakıf Girişim did not want to conduct venture activities and considered a sell-out, merger with another company or conversion into a real estate investment trust. However, it is interesting to note Global's interest for "skin in the game".
Amazingly, CFK & Partners announced (in Turkish) that they will be taking a 31.15 percent stake for YTL 3.13M ($2.6 million). This should value the trust at around YTL 10 million ($8.4 million).
I managed to speak with someone at CFK privy to the deal.
The results of the deal are as follows:
 CFK Corporate Finance Consultancy Joint Venture Group (Multinet Kurumsal Hizmetler A.Ş.(Multinet) & CFK Kurumsal Finansman Danışmanlık A.Ş. (CFK & Partners)) placed the best bid with bid with TRY 3.1mn (EUR 1.7mn), for the sale of Vakifbank’s 31.5% stake in Vakif Venture Capital :
- Total 31.00 % stake for Multinet
- %25 Group A
- %6.00 Group B
- Total 0.15 % Stake for CFK Corporate Finance Consultancy Inc.
- % 0.05 Group B Stakes of “Vakıf Finansal Kiralama A.S.”
- % 0.05 Group B Stakes of “Vakif Deniz Finansal Kiralama A.S.”
- % 0.05 Group B Stakes of “Gunes Sigorta A.S.”
CFK Corporate Finance Consultancy Joint Venture Group applied to the Capital Markets Board of Turkey (CMB) for the share transfer approval on March 7, 2008. The sale will be valid following the approval. The Company will also make a tender offer for minority shares.
Although some may consider this "small potatoes", they are very interesting developments, indeed. Could this even set a precedent for successful Turkish secondaries? CFK Halka Arz is a relatively new player in the Turkish Venture space, and up until now, they seemed still in the early stages of development (including their website). It should be interesting to see where this takes them.
UPDATE: I have just received prudent information regarding CFK itself, and I will include it in the next post. Please subscribe if you would like to receive it.
Labels: CFK Partners, Global Yatırım, Multinet, Vakıf Girişim
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Publisher: Jon H. Black
