EIF to launch a dedicated investment programme in Turkey

European Investment Fund (EIF), together with the Technology Foundation of Turkey (TTGV), the SME Development Organisation of Turkey (KOSGEB) and the public Development Bank of Turkey (TKB) are jointly launching a target EUR 200m dedicated fund of funds and co-investment programme in Turkey. Istanbul Venture Capital Initiative, or “iVCi” as the programme is known, aims to serve as a catalyst for the development of the private equity industry in this country whilst achieving good returns for its investors. iVCi is to be advised by EIF.

iVCi further consolidates EIF’s risk capital activities in Turkey, where it already has invested in Actera Partners and Turkish Private Equity Fund II. EIF's Chief Executive, Francis Carpenter, said: "We are extremely proud of supporting and being advisor to this pioneering initiative in Turkey. We have first class local partners and are confident that iVCi will accelerate the development of a sector which is key to the development of the Turkish economy.”

Sahir Cortoglu, TTGV's Secretary General, added: “This fund is a crucial starting point for formation of a risk capital market and culture which we believe will further serve as a means of technology development in Turkey” To this, Mustafa Colakoglu, Vice President of KOSGEB further commented “iVCi allows us to deliver to SMEs in Turkey top quality finance to support them reaching global markets through what has been historically an under-developed asset class in this country.”

TKB reflected on the importance of iVCi for the development of the domestic institutional investor base. Adbullah Çelik, Chairman of TKB said: “The majority of current institutional investors in Turkish private equity funds are foreign, iVCi provides a secure and sustainable environment for Turkish institutions, both public and private, to become involved as investors without hampering the corporate governance of the underlying funds.” Currently, the majority of institutional investors in Turkish private equity funds are foreign based. iVCi shall provide access for its investors to the increasing number of Turkish private equity players.  EIF is expected to invite a small select group of blue chip Turkish and international institutions to participate in this programme.

The first closing of iVCi took place in Luxembourg on 13 November 2007 at EUR 150m. The official public launch is envisaged in the first quarter of 2008.

About TTGV
TTGV was founded in 1991 by a number of public institutions, private companies and umbrella organisations. Based in Ankara, it is a non-governmental organisation whose mission is to support research, technology development and entrepreneurship, and innovation in Turkish industry in order to strengthen its ties with public and private research organisations and to improve its competitiveness on an international scale. TTGV is an investor in private venture funds and operates a fully funded early-stage investment company in Istanbul. For further information please visit http://www.ttgv.org.tr/

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

About TKB
TKB, the Development Bank of Turkey was established in 1975. TKB occupies an important role as a development and investment bank for its contribution to the financing of industry, tourism, education, health and energy sectors. The Bank’s principle objective is to support environmentally-conscious investments on regional and sectoral basis. For further information please visit http://www.tkb.com.tr/