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 - 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.
-Ends-
www.twitter.com/abraajgroup
www.linkedin.com/company/the-abraaj-group
About THE ABRAAJ GROUP
The Abraaj Group ("Abraaj" or "the Group") is a leading private equity investor, purpose-built for operating in the growth markets of Africa, Asia, Latin America, the Middle East, and Turkey.
Employing over 300 people, Abraaj has over 25 offices spread across five regions with hubs in Dubai, Istanbul, Mexico City, Nairobi and Singapore. The Group currently manages c. US$ 9.5 billion across regional, sector and country-specific Funds.
Abraaj has realized c. US$ 6.3 billion from over 80 full exits, and Funds managed by the Group have made over 140 investments across 10 sectors including consumer, energy, financials, healthcare and utilities. The Group is committed to the highest environmental, stakeholder engagement and corporate governance standards and is a signatory to the United Nations-backed Principles for Responsible Investment and the United Nations Global Compact. Abraaj's founder, Arif Naqvi, was appointed to the United Nations Global Compact Board by UN Secretary-General Ban Ki-moon in 2012 and to the Interpol Foundation Board in 2014.
This publication is issued by Abraaj Capital Limited ("ACLD" or the "Firm"), a member of The Abraaj Group that is authorised and regulated by the Dubai Financial Services Authority ("DFSA"). Several Group members are regulated by a number of international regulatory authorities including the DFSA under whose rules ACLD has issued this publication.
For more information please contact:
Mitali Atal
Director - Communications
The Abraaj Group
E : mitali.atal@abraaj.com
Iain Gibson
Finsbury
E: iain.gibson@finsbury.com
Aditi Mane
Finsbury
E: aditi.mane@finsbury.com
© Press Release 2016
