| Private Equity International Turkey Forum set for November 2009 in Istanbul |
| 14 August 2009 |
That's right, this is the latest news about a very significant event. Scheduled for November 23 and 24 at the Hyatt Regency in Istanbul, Private Equity International and EMPEA are coordinating a Turkey Forum with the main sponsors being Turkven, the Actera Group and Abraaj Capital. Endeavor is also supporting the event. I know Golden Horn Ventures tried to do something like this a year ago, and it proved a valuable spearhead to get this type of conference moving in Turkey. While the event does not seem to be significant for venture capital or entrepreneurs seeking investment, it is good to see Turkey's prominent PE executives getting together to hash this one out. The agenda looks interesting, especially the panels that will discuss the great potential that the emerging market of Turkey will have for LPs and GPs. In addition take a look at this list of conference speakers:
Sarah Alexander, President, EMPEA
Achmed Al-Shahrabani, Senior Vice President, Abraaj Capital
Uğur Bayar, Managing Director & CEO, Credit Suisse Turkey
Mete Çakmakcı, TTGV
Murat Çavuşoğlu, Managing Partner, Actera Group
Can Deldag, Managing Director, The Carlyle Group
Serkan Elden, Managing Director, AIG Capital Partners
Saki Georgiadis, Investment Director, Gartmore Private Equity
Tolga Işmen, Lawyer, Ismen
Salim Kadıbeşegil, Chief Executive Officer, ORSA Strategic Communications Consultancy
David Nieuwendijk, Senior Investment Officer Private Equity, FMO
Murat Özgen, Chief Executive Officer, İş Private Equity
Carlos Perry, Chief Operating Officer, EMPEA
Jose Romano, Head of Turkey & Istabul Venture Capital Initiative, European Investment Fund
Nikos Stathopoulos, Managing Partner, BC Partners
Seymur Tari, Managing Director, Turkven
Selcuk Yorgancioglu, Executive Director & Turkey Country Head, Abraaj Capital
Birol Yücel, Managing Director, Turkven
For most of you who have followed Grandstanding Traction over the last few years, I think you can see the significance right away about what this conference means for Turkey and the growth of private equity. What I wouldn't give to be a potential GP with a private placement memo ready to go for this event. So for all those interested in putting together a fund, dust off your elevator pitch. Registration for the PEI Turkey Forum will cost you a pretty penny.
The question will remain, "Will those types of high net-worth individuals from Turkey come out for this event?" I encourage all who are interested in making investments in Turkey to attend this event. Private equity is cyclical, and Turkey has some thriving industries yearning for investment since the recent downturn. The website specifically states that all types of institutional investors will be given complementary tickets, so we can already see the potential waiting for GPs at this event. All the relavant players will be there - so should you.
Labels: Abraaj Capital, Actera, Conferences, Endeavor, Turkven
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| Turkven Makes Investment in Mavi Jeans - October 2008 |
| 25 November 2008 |
NOTE: To all my readers, I'm sorry for the recent hiatus in updates, but during the course of a full time job and starting a masters program, I've had little time for anything else. Needless to say, we are amidst an economic conundrum of sorts, but that doesnt mean that things have come to a standstill. When times look most bleak, we must all remember the cyclical nature of things.
Also, I would like to point out that my blog as well as the millions of other Blogger blogs were blocked by a court ruling inside of Turkey during a weekend in October. Apparently, the local satelite provider needed to block a blog that was posting videos of football matches, and we all got thrown in the same basket. In addition, it appears that Dogan Media has decided to envelop all of the Turkish Daily News and will no longer be running their website. Unfortunately, a lot of my previous posts have links to the TDN and will no longer work - for that I'm sorry, but it is out of my control. Life is like this sometimes.
So, in doing some housecleaning, I would like to publish the press release in its entirety from Turkven that came out in October 2008. What can we take away from this venture? Was it a last ditch effort for TVPE II to get deals done before the sh*t hit the fan? Equally, on both sides of the boardroom table, this very well could have been of critical importance for Mavi to find liquidity. Do you consider a jeans maker a conservative or risky investment at this stage? Albeit a very competitive market, perhaps the terms of the deal were too good to pass up.
 TURKVEN INVESTS IN MAVI
October 2008
Turkven has acquired a stake in Mavi, the leading Turkish apparel brand.
Founded in 1991 by the Akarlilar family, Mavi has operations in 27 countries through a retail network of 190 stores generating over US$150 million of sales in 2007.
Ersin Akarlilar, Executive Board Member of Mavi said: "Mavi’s ambition is to become a US$1 billion company with a global brand and retail operations. We have partnered up with Turkven to leverage their network and operational expertise to achieve our goals."
Turkven Managing Director Seymur Tari said: "Mavi will build on its strong denim heritage to grow into a global lifestyle brand. Mavi is a pioneer, and it serves as a role model for Turkish companies with its brand, design capability and global ambitions."
 Turkven Principal Kerem Onursal added: "We are an industry leader with a track record of investing in industry leaders. Our experience allows us to look beyond the short term volatility to identify sustainable businesses with a potential to create substantial shareholder value."
Labels: Mavi Jeans, Turkven
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| Turkven Invests in Tekin Acar Cosmetics |
| 27 May 2008 |
This will probably not be the last post regarding Turkven Private Equity and its disbursement of its $400+ Million TPEF II Fund. Turkven's latest investment consists of Tekin Acar Cosmetics - the largest selective cosmetics retailer in Turkey with over 40 stores located in 15 cities and a market share of 35%. The Company sells perfumes, skin care, make-up, sun and other products and employs approximately 400 people.
Turkven Managing Director Seymur Tari added: "The Company is well positioned to reach its operational and financial targets with an investment budget of YTL20 million and no financial debt." Turkven Principal Sepin Sinanlioglu Inceer added: "We plan to increase the total number of stores to 100, our market share to 40% and our turnover to YTL150 million."
 Commenting on the transaction, Chairman Tekin Acar said: "Our partnership with Turkven will help us better execute our ambitious growth plan in the coming years. Our goal is to increase our market share through geographic expansion and to continue to offer a wide selection of selective cosmetics products to our customers at affordable prices."
Turkven was advised by Baker & McKenzie, Paksoy, Davutoglu (legal), GBC (industry) and PricewaterhouseCoopers (financial & tax).
The Sellers were advised by Standard Unlu (financial advisor), Guzeldere and Karaosmanoglu (legal).
It would be interesting to know what is the timeline for this investment with the growth of stores and turnover or what equity stake was taken by Turkven, but unfortunately this information was not given.
Labels: Seymur Tari, Standard Unlu, Tekin Acar, Turkven
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| Dealflow 2008: BC Partners Acquires Migros; Manara grabs 21% ACT Airlines; Abraaj Capital partners up with Acibadem Healthcare |
| 24 February 2008 |
 Migros Turk Acquired by BC Partners, Ltd.
14 February 2008
BC Partners Ltd., a London-based buyout firm, has agreed to a 1.98 billion liras ($1.7 billion), or 21.85 liras a share leveraged buyout acquiring 51% of Migros Turk AS from Koc Holding AS. BC Partners will also offer to buy out minority stockholders at the same price. This places a value of about $3.2 billion for Turkey's largest supermarket chain.
Some interesting statistics concerning the deal and supermarket/retail in Turkey:
- Migros Turk has 961 stores in Turkey, Azerbaijan, Kazakhstan, Kyrgyzstan and Macedonia.
- The deal values Migros at about 21-times forecast 2008 earnings, according to the average of 18 estimates compiled by Bloomberg.
- BC Partners beat off rival bidders including buyout firms Blackstone Group LP and Kohlberg Kravis Roberts & Co., and Russian billionaire Mikhail Fridman's Alfa Group, as well as Turkey's 2nd biggest retailer - Paris-based Carrefour SA.
- Turkey has attracted about $40 billion of direct foreign investment in the past two years.
- Turkey has 17 supermarkets per million people, compared with 150 in the European Union, according to accounting firm PricewaterhouseCoopers LLP.
Well, this one has long been anticipated, and it looks like even Turkven got a piece in the syndication deal. Well done - considering the recent closing of their TPEFund II. This also makes cash readily availible for Koc Holding who is expected to hit the energy sector hard with the privitaztion of Turkey's electricity producers and distributors.
This also marks the largest private equity deal to date in Turkey as well as BC Partners first entry into the Turkish market. This deal beats the KKR $1.28 billion buyout of UN RO-RO of last year..
To read more ----> Bloomberg: BC Partners to Buy Turkey's Migros for $3.2 Billion (Update4)
AltAssets: BC Partners to acquire Istanbul-listed supermarket chain Migros
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 Manara Investments takes 21% stake in ACT Airlines
05 February 2008
A small cargo fleet of 7 Airbus A300's (2 Airbus A330-200s on order) and 250 employees based in Istanbul, ACT is looking to expand internationally into the MENA region, Eastern Europe, Central and South Asia. ACT was founded in 2004. Total value of the deal was not disclosed.
Manara is a newly established investment vehicle sponsored by four leading Saudi business groups. The four Saudi business groups, together with 3i Group plc, are the sponsors of the Manara Infrastructure Fund LP (MIF), a US$1 billion (target size) private equity fund for infrastructure investments in Islamic countries. It is intended that this investment in ACT will be transferred to MIF upon commencement of business.
To read more ----> Zawya: Manara Investments Acquires 21% Equity Stake in Turkey's ACT Airlines
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Acibadem Healthcare Services Signs 50/50 Joint Partnership with Abraaj Capital
28 January 2008
The basics of the deal:
 Abraaj Capital, a premier investment firm specialising in private equity investment in the Middle East, North Africa and South Asia (MENASA) region, announced that it has partnered with Acibadem Healthcare Services, Turkey's leading healthcare provider, to support its ongoing expansion in Turkey and establish the company's presence in the Middle East.
 Almond AS, a 50:50 joint holding company formed by Abraaj Capital and Mehmet Ali Aydinlar, one of the founders and the Chief Executive Officer of Acibadem, recently acquired a 69.6 per cent stake in the Turkish firm. Abraaj Capital also acquired a 50 per cent stake in leading Turkish health insurance company, Acibadem Sigorta, from Mr. Aydinlar. Abraaj Capital's investment was made through its US$2 billion Infrastructure and Growth Capital Fund (IGCF).
Some real interesting statisics about Healthcare in Turkey:
There are currently twice as many physicians per 1,000 people in the 30 countries within the OECD than there are in Turkey and in the GCC, and nearly three times the available hospital beds. In the GCC states alone, demand for treatment is expected to grow more than two-fold in the next 20 years, to approximately US$60 billion per annum by 2025.
To read more ----> Zawya: Turkey's leading healthcare provider partners with Abraaj Capital to expand services in MENASA
Labels: Abraaj, acquisitions, BC Partners, Buyout, deal flow, Manara, Turkven
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| Turkven Closes Second Fund - TPEF II |
| 18 November 2007 |
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)
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.
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.
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, EIFLabels: Fund Closings, fundraising, Private Equity, Turkven, Venture Capital
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Publisher: Jon H. Black
