Fund managers raise $824M for Turkey in 2016

By Dilara Zengin

ANKARA

Private capital fund managers raised $824 million for Turkey in 2016, the highest total recorded for the country since 2012, according to Global Industry Association for Private Capital in Emerging Markets (EMPEA) on Friday.

In a report, EMPEA said private capital fundraising and investment declined by 9.4 percent and 12 percent, respectively, year-over-year, in emerging markets despite notable increases in activity across key markets, strategies and sectors.

The combined total fund for emerging economies such as Brazil, India and Turkey decreased to $44 billion last year from $49 billion in 2015.

"While Latin America and Sub-Saharan Africa experienced the largest declines in capital raised, fundraising for the central and eastern Europe and the Commonwealth of independent states jumped from $715 million in 2015 to $1.8 billion in 2016, which was due in large part to an upswing in commitments to Turkey-focused vehicles," it said.

For Turkish markets, the largest funds raised in 2016 were by Abraaj Turkey Fund I, Mediterra Capital Partners II and Taxim Capital Partners I.

"Despite current economic conditions in Turkey, strong fundraising for the market suggests many investors remain attracted to its long-term prospects," EMPEA commented in the report.

Baris Oney, EMPEA country representative for Turkey and the chairman of Globalturk Capital, said the association's interest in Turkey encouraged private funds in emerging markets.

"The amount of investment after 2012, which is almost $1 billion, indicates foreign direct investors' appetite for Turkey," he said.

"That investments will gradually increase in second half of 2017," Oney added.