The Abraaj Group to manage Anatolia focused venture capital fund

The EIF and the Turkish Ministry of Science, Industry and Technology announced today that The Abraaj Group will be the fund manager for the G43 Anatolian Venture Capital Fund, a fund targeting the emerging regions of Turkey characterised by the so-called “Anatolian Tigers".

Through the Instrument for Pre-Accession Assistance and with the SME Development Organisation of Turkey (KOSGEB) as Turkish counterpart, EIF is committing EUR 14 million to the new fund. EIF is also leveraging Turkey’s local fund of funds, the Istanbul Venture Capital Initiative (iVCi), which has also committed EUR 2 million to this venture capital fund. With this pool of money and a commitment of EUR 4 million from The Abraaj Group, the G43 Anatolian Venture Capital fund is targeting to channel a minimum of EUR 20 million into the region. The fund will target 43 cities in Turkey with per capita incomes below 75% of the national average, offering substantial convergence opportunities and growth potential. At least 50% of the fund will be invested in the South-eastern Anatolia Region (GAP Bolgesi).

In a public event held today in Şanlıurfa, KOSGEB President Mr. Mustafa KAPLAN stated: “This fund will reach some of the best small and medium enterprises in this least developed part of Turkey, thus giving them the opportunity to professionalise further and grow to become bigger corporations.”

Marjut SANTONI, Deputy Chief Executive of EIF added, “The Abraaj Group is an experienced fund manager, with an already established presence in Turkey and an extensive global experience in supporting fast growing businesses in the most challenging geographical environments.”

Selcuk YORGANCIOGLU, Partner and Regional Head of Central Asia and Turkey at The Abraaj Group, added, “This fund is a stepping stone for us in consolidating our presence in the region. There are excellent investments to be made in this part of Turkey and we will be working hard to prove it.”

About the Ministry of Science, Industry and Technology

Ministry of Science Industry and Technology is the operating structure of the Regional Competitiveness Operational Programme (RCOP) in Turkey. The Programme is co-funded by European Union’s Instrument for Pre-Accession Fund and Republic of Turkey. RCOP’s main objective is to increase the competitiveness level of 43 provinces located in relatively less developed parts of Turkey -namely target region- by both investing in improvement of business environment and by supporting the strengthening of the enterprise capacity and fostering entrepreneurship with a total budget of EUR 550 million for 2007 – 2013 period. G43 project is funded so as to contribute  to the creation and development of innovative financing solutions for the target region.

About KOSGEB

Established in 1990, KOSGEB is the public agency tasked with supporting the development of Turkish SMEs through various programmes and services. KOSGEB’s operations include the operation of public incubation centres and joint use technology service centres. Based in Ankara, KOSGEB operates an extensive network of regional offices and centres. KOSGEB participates in several specialised financing vehicles for SMEs in Turkey. For further information please visit: www.kosgeb.gov.tr

About EIF

EIF's central mission is to support Europe's micro, small and medium-sized businesses by helping them to access finance.  EIF designs and develops equity (venture and growth capital), guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s equity investments aim to leverage its own funds and those managed on behalf of mandators. In Turkey, EIF is investor with EUR 50m in the Istanbul Venture Capital Initiative (iVCi), which it also advises, plus being a direct institutional investor in several private equity funds with total exposure over EUR 160m. EIF also manages the Greater Anatolia Guarantee Facility (GAGF) and has guarantee commitments of over EUR 60m. 

About iVCi

Established in November 2007, Istanbul Venture Capital Initiative (iVCi) (www.ivci.com.tr) is Turkey’s first ever dedicated fund of funds and co-investment programme. Total fund commitments amount to EUR 160 million from public and private investors such as the Small and Medium Industry Development Organisation of Turkey (KOSGEB), the Technology Development Foundation of Turkey (TTGV), the Development Bank of Turkey (TKB), Garanti Bank, the National Bank of Greece Group (NBG Group) and the European Investment Fund (EIF). EIF is the adviser to iVCi. For further information please visit: www.ivci.com.tr

About The Abraaj Group

The Abraaj Group is a leading private equity investor operating in the growth markets of Africa, Latin America, Middle East, South Asia, South East Asia, Turkey and Central Asia. Employing over 300 people, the Group has 25+ country offices spread across six regional hubs in Dubai, Istanbul, Mexico City, Mumbai, Nairobi and Singapore. Local presence across these markets provides the Group with unmatched expertise, know-how, proprietary transactional access and the ability to grow partner businesses across borders.The Abraaj Group currently manages US$ 7.5 billion across 20+ sector and country-specific Funds, encompassing private equity (majority and significant minority investments with ticket sizes of between US$ 10 million to US$ 100 million) and real estate (primarily yield-generating) investments. Funds managed by the Group have holdings in over 140 partner companies that collectively employ over 200,000 people and create sustainable value in sectors including manufacturing, education, retail, aviation, oil and gas, financial payments infrastructure, healthcare and agribusiness. The Group’s current partner companies include industry leaders such as Network International, the largest independent payment solutions provider in the Middle East and Africa, NEP Holding, with its Diamond brand and a market leader in the residential filtration market of Malaysia (with a growing presence in Singapore, Hong Kong, Taiwan and Southern China), Brookside Dairy, the leading dairy in East Africa, and Iasacorp, a long established family run women’s retail business in Peru. The Group has set the standard for private equity investing in growth markets, having returned c. US$ 4.2 billion to investors from over 70 full and partial exits, providing industry leading returns across a range of companies that have emerged as today’s regional champions and tomorrow’s global challengers. The Abraaj Group has an investor base of 300, including corporates, development finance institutions, financial institutions, pension funds, sovereign wealth funds, family offices, high net worth individuals and other institutional investors from Asia, Africa, the Americas, Europe and the Middle East. The Abraaj Group is committed to the highest environmental, stakeholder engagement and corporate governance standards. The Group is a signatory to the United Nations-backed Principles for Responsible Investment and the United Nations Global Compact. The Group’s founder, Arif Naqvi, was appointed to the United Nations Global Compact Board by UN Secretary-General Ban Ki-moon in 2012. In 2013, Mr. Naqvi was awarded the Oslo Business for Peace Award, one of the highest forms of recognition given to global business leaders for fostering peace and stability through creating shared values between business and society. Through its social investing program, The Abraaj Group has supported best in class organizations focused on entrepreneurship and job creation, healthcare, education and community engagement and thereby enabled a deep-rooted and sustainable impact on the economic landscape of the markets in which it operates. This publication is issued by Abraaj Capital Limited (ACLD), 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 further information please visit: http://www.abraaj.com/