• Abraaj has been successfully investing in Turkey for over a decade
• Experienced local team has made iconic investments in Turkey
• Fund aims to capture growth opportunities driven by an expanding, urban middle class and rising domestic consumption
Istanbul, Turkey, 26 July 2016: The Abraaj Group (‘Abraaj’ or the ‘Group’), a leading investor operating in global growth markets, today announced the final close of its first dedicated Turkey Fund at US$ 486 million with a further US$ 40 million raised for co-investment, against a target of US$ 500 million.
Abraaj Turkey Fund I (‘ATF I’ or the ‘Fund’) received support from a diverse range of new and existing investors. Of the capital committed to the Fund, 70% has come from European and North American investors, with institutional investors and sovereign wealth funds accounting for 78% of the committed capital.
ATF I will leverage the Group’s on-the ground investment experience in Turkey to capture opportunities presented by strong mid-market growth. The Fund targets well-managed, mid-sized businesses operating primarily in sectors poised to benefit from growing domestic consumption such as consumer goods and services, healthcare, financial services, logistics and retail.
To date, ATF I has made two investments, firstly in Hepsiburada, the market leader in the Turkish e-commerce industry, which has five million active customers and a product range of 1.8 million stock keeping units as of this year; and secondly, in Fibabanka A.S., one of Turkey’s most prominent banks with a strong focus on commercial, corporate and SME customer segments.
Commenting on the Fund closing, Arif Naqvi, Founder and Group Chief Executive of The Abraaj Group said, “The successful closing of our first dedicated Turkey Fund reflects our strong conviction on the Turkish economy and the attractive investment opportunities available. Turkey is on track to become one of the 15 largest economies in the world by 2030, driven by a young population, a growing and aspirational middle class, and a vibrant entrepreneurial culture. We have long recognized the Turkish consumer as a reliable source of investment returns, having generated over US$ 800 million in exit proceeds to date. We look forward to deploying this Fund successfully and thank our investors for the continued confidence they have shown in Abraaj”.
Selçuk Yorgancıoğlu, Partner and Regional Head of Turkey and Central Asia at The Abraaj Group, added, “The Turkish market remains underserved by private equity, offering clear opportunities to provide smart capital to drive expansion among well-managed companies with the capability to become market leaders. The Fund’s investment strategy will leverage our global experience and a decade of local presence to construct a portfolio of investments that is diversified by both sector and deal type. Having made two successful investments in Hepsiburada and Fibabanka, we are well positioned to identify and partner with high-growth businesses that we can develop into national and regional champions”.
Abraaj is a leading investor in the private equity industry in Turkey, where it has deployed more than US$ 900 million across 11 investments. The Group’s landmark transactions in the country include Acibadem Healthcare, which comprised four distinct businesses and from which the Group successfully exited its shareholding through a US$ 2 billion initial public offering (IPO) which was ranked the fifth largest IPO globally in 2012.
Abraaj manages its Turkey and Central Asia investments from Istanbul, one of five hubs in a network of offices in global growth markets, stretching from Latin America to South East Asia.