Global investors The Abraaj Group announced today that they have just closed its first dedicated Turkey Fund worth $486 million, with a further $40 million raised for co-investment. Abraaj Turkey Fund I has 70% of the money coming from European and North American investors. Institutional investors and sovereign wealth funds account for 78% of all committed capital. The group who mostly targets medium sized businesses with considerable growth potential globally, said in a statement that the new Turkey fund focuses primarily on sectors that serve to growing domestic consumption such as consumer goods and services, healthcare, financial services, logistics and retail.
The Group has more than $900 million across 11 investments in Turkey, but two of them stand out: Hepsiburada, the market leader in the Turkish e-commerce industry with reported five million active customers, and Fibabanka, one of Turkey’s new breed of banks with a strong focus on commercial, corporate and SME customer segments.
Arif Naqvi, Founder and Group Chief Executive of The Abraaj Group said 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”. 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. 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”.
The Abraaj Group has more than 20 offices across the world managing over $9.5 billion worth of assets as of today.