The European Investment Fund (EIF) and the Small and Medium Enterprises Development Organisation of Turkey (KOSGEB) have joined forces to establish a new fund of funds initiative to stimulate growth and innovation in Turkey.
Both institutions have committed up to EUR60m each with a target size of EUR250m at final closing as it is expected that other local partners will join the initiative.
The Turkish Growth and Innovation Fund of Funds succeeds the Istanbul Venture Capital Initiative (iVCi), Turkey’s first fund of funds which was launched in 2007 and is now fully committed. The new fund will be advised by EIF and invest into growth capital funds, whilst also tapping into the infant but very dynamic early stage segment which is developing rapidly.
Werner Hoyer, president of the European Investment Bank Group, signed the commitment on behalf of EIF in Ankara.
Richard Pelly (pictured), chief executive of the European Investment Fund, says: “This new fund of funds builds on the experiences that we have gained during the past six years of pioneering work under iVCi in the private equity sector in Turkey. It would not have been possible without the close cooperation between EIF and KOSGEB; our partnership approach will ensure the continuation of a long-term investment scheme that we expect to deliver a significant stimulus to equity investments into growth-focussed enterprises. The EIF is seeking to strengthen its relationship with national promotional institutions, and our cooperation with KOSGEB is a prime example of this strategy.”
Mustafa Kaplan, president of KOSGEB, says: “The European Investment Fund is a key partner for us. We have seen their approach towards fund of funds first-hand and their keen interest on building partnerships with local players. The new initiative will focus on growth and innovation, both key challenges for our institution and for Turkey. We are convinced that other public and private partners will join this initiative and confident that with their support, we will reach our target fund size.”
The Turkish Growth and Innovation Fund builds on iVCi, which to date has supported nine funds with a tenth expected to be closed in July. Overall, a total of EUR134.5m has been committed to date to funds managed out of Istanbul.
