| RHEA Investments Acquires Stake in Turkey’s first fully integrated solid waste and energy company, Envitec Ltd. |
| 02 June 2010 |
To finish the trio of investments for RHEA Investments so far in 2010, RHEA acquires a 33% stake in Turkey’s first fully integrated solid waste and energy company, Envitec Ltd. Envitec has a 25-year Build-Operate-Transfer concession in a 27 municipality region on the Mediterranean Coast of Turkey. The investment will reach $7 Million in 2010.
Onur Takmak, Chairman of the Board for Vakıf Girisim and Chief Executive Officer of RHEA Investments stated "Natural resources, clean infrastructure and energy are focal points of our investment targets. Vakıf VCIT will continue investing in leaders with the right technologies and with the right implementation projects in Turkey. We are excited to work with partners including Enviro Metall GmbH, Kanyol Construction and Biodegma GmbH to leverage their extensive experience in environmental technologies and projects. Envitec will build a strong brand and become a regional leader in waste management."
Ali Rıza Serter, Chairman of the Board for Envitec, expressed that Iskenderun Area Municipal Solid Waste Project will be the first project in Turkey designed single-handedly end-to-end with a clean environment and European Union guidelines in mind. Serter said "We will be proud to serve a very fast growing population of more than half a million residents for 25 years. Envitec is excited to partner with RHEA and Vakıf Girisim to complete this showcase project and expand to other regional municipalities."
Memet Yazici, Head of Asset Management, RHEA Investments and Board Member for Vakif Girisim commented "With our partnership, Envitec will complete a $35 Million infrastructure investment in the first phase. This investment will cover the daily collection of 600 tons of solid waste per day; separation of recyclables; sterilization and elimination of medical waste; production of organic compost material; flash-drying of municipal waste water treatment products; and managing the landfill for the remaining solid waste. The second phase will also add one of Turkey’s largest organic fertilizer plants and an energy production plant from landfill methane. This is a showcase project focused on maximizing the solid waste re-use and finding the cleanest waste management solutions."
Cem Baytok, Director of Energy Investments for RHEA, mentioned that Envitec has been managing a profitable waste collection operation in the region. Following the investment period the project will generate cash flow equivalent to a 100 MW wind energy generation plant. Baytok added that the clean energy production of the project will be enhanced with additional follow-on investments.
Envitec was founded in 2009 after winning the tender for the Build-Operate-Transfer Solid Waste Management and Energy Generation project for the Iskenderun Region of Turkey consisting of 27 municipalities. Founding partners of Envitec include Enviro Metall GmbH, a Stuttgart-Germany firm focused on clean environment projects; Kanyol Construction Inc of Turkey, and Biodegma GmbH of Germany.
Labels: RHEA investments, Vakıf Girişim
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| RHEA Investments Takes Stake In Netsafe Information Technologies - a leading Turkish independent asset management platform |
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January 2010
The second of three investments in 2010 for RHEA Investments, RHEA announced that they had acquired a 60% stake in Netsafe Information Technologies of Istanbul, Turkey. Netsafe is Turkey’s fastest growing Network Security Unified Threat Management (UTM) appliance manufacturer. The proposed transaction values Netsafe at approximately $1 Million US Dollars.
Netsafe, based in Istanbul, Turkey, serves more than 150 small to medium enterprises in Turkey and exports its products to the Middle Eastern and Eastern European countries. Netsafe was founded by Cüneyt Kalpakoglu, an experienced information security expert and former veteran of IBM in Turkey.
Onur Takmak, Chairman of the Board for Vakıf Girisim and Chief Executive Officer of RHEA Investments added "We selected Netsafe as our initial investment in information security. We will be looking to expand our investments in products and business in telecommunications, information technology and internet applications with a global vision".
Labels: RHEA investments, Vakıf Girişim
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| RHEA Investments Acquires Majority Stake in SETA Medical Products |
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January 2010
The first of three investments in 2010 for Rhea Investments, SETA is Turkey’s leading manufacturer of disposable medical products, including disposable surgical drapes and gowns, and custom procedure trays. The proposed transaction values SETA Medical at $4.6 million.
Onur Takmak, Chairman of the Board for Vakıf Girisim and Chief Executive Officer of RHEA Investments announced "Disposable medical products are a global $75 Billion market poised for strong growth. SETA represents the leading edge of value added healthcare products and is our initial investment in innovative healthcare companies with regional and global growth aspirations".
Oguz Dagli, Chief Executive Officer of SETA Medical since 2005 commented "With this investment and partnership with RHEA, we are planning to grow our market share and our healthcare logistics capabilities exponentially targeting the Western European market".
Labels: RHEA investments, Vakıf Girişim
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| RHEA Investments Joins with Stowbridge Partners; Purchases Vakif VCIT Shares |
| 25 September 2009 |
RHEA Investments, a London-baseded private investment and project development company in the fields of real estate, health, energy, agriculture, and financial services, has made a few moves in the last month that should position it for permanency in the Turkish environment. RHEA Investments established a foothold in Turkey in 2006 and have made successful investments on a MediaMarkt project in Izmir as well as continuing development of hotel projects in various Turkish cities.
Posted about a month ago on the Linkedin group - Venture Capital and Private Equity in Turkey, Memet Yazici, group leader Head of Asset Management at Rhea Investments, makes two announcements regarding the future direction of Rhea Investments. First and foremost last month, RHEA Investments announces that it has joined forces with Stowbridge Partners. According to the post:
"Stowbridge Partners and RHEA Investment Group are joining forces to launch a venture capital and private equity management as well as a corporate advisory unit under the RHEA name. Accordingly, Stowbridge venture capital management and corporate finance advisory practices will merge with the RHEA team.
The new entity will combine the strength of RHEA’s business in the real estate, energy and healthcare sectors with the Stowbridge Partners’ extensive experience in Venture Capital and Small/Medium Enterprise Private Equity. Both teams share the same vision to produce superior returns and the same dedication to excellent execution.
RHEA’s primary office is located in Istanbul, Turkey with additional offices in London (UK) Chicago, Illinois (US), Bucharest (Romania), Izmir (Turkey) and Dubai (UAE).
At Stowbridge Partners, managing partner Kurtay Ogunc will continue his leadership and identify new opportunities for cooperation and collaboration between U.S. and the EMEA region.
About a year ago, Stowbridge Partners was taken off Grandstanding Traction's index (right sidebar) due to inactivity, or rather "off the radar". As of this announcement, they have been added again. Memet Yazici is also a board member of Stowbridge Partners.
Days after, RHEA Investments made another announcement regarding its agreement to purchase 31.15 percent of Vakıfbank's private equity operation Vakıf Venture Capital Investments Trust.
As mentioned in the Hurriyet Daily News, "The 2.1 million Turkish Liras deal is pending the approval of Turkey's Capital Markets Board, or SPK, and is likely to be finalized by the end of 2009. Vakıf Venture Capital Investment Trust was established in 1996 and listed on the Istanbul Stock Exchange in July 2000."
According to Memet Yazici on Linkedin, "RHEA has signed a definitive agreement with Vakif Bank to purchase all of the A type (controlling) and 6.15% B type (ordinary) shares of Vakif Risk Sermayesi Yatirim Ortakligi A.S. (Vakif Venture Capital Investment Trust), an Istanbul Stock Exhange listed joint stock company (stock code: “VKFRS” ). All of the remaining shares are trading on the ISE."
As quoted in the Hurriyet, "We will be particularly interested in cooperating with sector leaders, firms that are already first or second in their respective sectors, which have an ambitious global growth vision. Our goal is to grow the firms and exit them in some two to four years, like an average private equity investor would do," Yazıcı said. Rhea has already screened some 25 firms looking for an investment between 5 million and 20 million euros. "In addition to this, motivated by the construction of technoparks in Turkey in recent years, we are also planning to build a technology portfolio of some five companies," said Onur Takmak, Rhea Investment venture capital director.
Additional information can be obtained at:
The New Energy World Network - Turkish renewable energy investment trust Rhea Investments acquires Vakif Risk Sermayesi Yatirim Ortakligi
Invest IQ - RHEA Buys controlling Share of Vakif Venture Capital
Rhea comes to Turkey with international corporate investors (TR)
Overall, this looks like a nice consolidation of the industry with some good heads at work. Vakif Girisim was looking to unload this subsidiary for some time now. In fact, Grandstanding Traction posted in 2008 an interview with CFK Partners who were intending the purchase the Vakif Girisim shares. CFK Halka Arz Partners website is still under construction, so this deal appears to have fallen through.
Labels: RHEA investments, Vakıf Girişim
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| 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
