Abraaj Group closes Turkey fund after reaching $526 million
by Daily Sabah with Wires
ISTANBULJul 27, 2016 - 12:00 am GMT+3
by Daily Sabah with Wires
Jul 27, 2016 12:00 am
Abraaj Group, a private equity company that has operations in emerging markets, has announced the closure of its Turkey fund after it reached its objective of investing $500 million in Turkey by adding $40 million, which it collected for joint investments, to its first Turkey-specific fund of $486 million.
The group, which has been investing in Turkey for more than a decade, aims to seize opportunities based on the rising domestic consumption in the country.
Abraaj Turkey Fund I (ATF I) was supported by various investors from a broad spectrum. A total of 70 percent of capital that was pledged for the fund came from European and American investors, while corporate investors and national asset funds constituted 78 percent of pledged capital.
ATF I will benefit from the group's investment experiences in Turkey and will seize the opportunities that strong growth offers. The fund aims to become a partner with well-managed medium and large scale enterprises that benefit from the rising domestic consumption in sectors such as consumer products and services, health services, financial services, logistic and retail sector.
Previously, ATF I invested in hepsiburada.com, a leading player in Turkey's e-commerce sector, with its 5 million active consumers and 1.8 million products in its product range, in addition to Fibabanka, which focuses on commercial and corporate consumer segments including small- and medium-size enterprises (SMEs). Fibabanka is one of the fastest growing banks in Turkey.
Arif Naqvi, the founder and CEO of the Abraaj Group, commented on ATF I, saying that the closure of the group's first special fund for Turkey reflects its strong belief in the Turkish economy and existing attractive investment opportunities. He added, "With its young population, growing economy and rising entrepreneurship culture, Turkey is proceeding on its way to becoming one of the largest 15 economies in the world by 2030."
According to Naqvi, the Abraaj Group regards Turkey's growing economy, where it has created more than $800 million in output revenue so far, as a reliable source of investment returns. He extended thanks to investors for their confidence in Turkey and the group.
Selçuk Yorgancıoğlu, a partner and Turkey and Central Asia Head of the Abraaj Group, said the Turkish market increased the number of well-managed companies with the potential for leadership with every passing day and continues to offer opportunities for successful investments. According to Yorgancıoğlu, the fund's investment strategy is to offer a diversified portfolio in terms of investment and sector types by using its international experience and market experience that it has been acquiring in Turkey for more than 10 years. "Following our successful investments in hepsiburada.cpm and Fibabanka, we aim to establish partnerships with enterprises that we can turn into regional and national leaders with their high growth potential," he added.
With its 11 portfolio companies in which it invested more than $900 million, the Abraaj Group is one of the leading investors in Turkey's private capital sector. One of its most successful investments in Turkey was in Acıbadem Health Group. It ceased to be a stakeholder in the health group by selling its stake for $2 billion in 2012 through the fifth largest public offering in the world that year. The group has offices in emerging markets spanning from Latin America to southeastern Asia, and its Istanbul office, where it manages investments in Turkey and Central Asia, operates as one of its main headquarters.