EUR 200 million for the Turkish Growth and Innovation Fund

The European Investment Fund has announced the launch of the establishment process of the Turkish Growth and Innovation Fund today. The cornerstone investors in the fund will include the Undersecretariat of the Treasury (the Treasury) with EUR 60m, the Small and Medium Enterprises Development Organisation of Turkey (KOSGEB) with EUR 60m and the Industrial Development Bank of Turkey (TSKB) with EUR 20m. EIF intends to commit EUR 60m. These commitments would amount to a total of EUR 200m, with the first closing taking place after regulatory approval has been obtained.

The Turkish Growth and Innovation Fund will be Turkey’s next generation of Fund of Funds and will succeed the Istanbul Venture Capital Initiative (iVCi), Turkey’s first ever Fund of Funds. iVCi was launched in 2007 and made 10 investments, including in some of Turkey’s most successful funds in the country. With a strong focus on innovation, the Turkish Growth and Innovation Fund shall also continue supporting growth capital funds. The Fund shall be advised by the EIF.

Cavit Dağdaş, Undersecretary of the Treasury, states: “The Government of the Republic of Turkey is a strong supporter of developing the venture capital asset class in our country. With our intended EUR 60m commitment to this Fund of Funds, and through the expertise of the European Investment Fund, we are certain that the Turkish Growth and Innovation Fund shall fulfil this important policy objective.”

Recep Biçer, President of KOSGEB, states: “This project has taken some time to be put together. Throughout this time the partnership amongst the Sponsors has become stronger and we are now ready to push the button and provide access to finance and mentoring through this asset class to entrepreneurs and Small and Medium Enterprises.”

Özcan Türkakın, CEO of TSKB, states: “In line with TSKB’s mission, we take great pride in announcing our participation in the Turkish Growth and Innovation Fund to keep supporting entrepreneurial companies in sectors that will add value to the Turkish economy by aiding an underserved sector to tap into alternative means of financing.”

Pier Luigi Gilibert, EIF Chief Executive stated: “This new fund rewards the past eight years of work through iVCi, a fund with a Net Asset Value which is reaching a very attractive level for its investors. We are now in a position to start investing through Turkey’s next generation of Fund of Funds to support SMEs in Turkey. We would like thank our local partners for their continued support and look forward to reviewing the first investments.”

The Turkish Growth and Innovation Fund builds on iVCi. With a capitalisation of EUR 160m, iVCi has supported 10 funds which to date have made over 50 investments.

European Investment Fund

The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 8.8 billion at the end of 2014. With investments in over 500 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF’s guarantees loan portfolio totalled over EUR 5.6 billion in over 350 operations at end 2014, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

Undersecretariat of the Treasury

Treasury has the legal personality and carries out many functions including among others: the debt management of the country, regulating the insurance sector, executing foreign economic relations of the country, determining the rules related to the exchange legislation and ownership and supervision of the state owned enterprises. In addition to these responsibilities, the Treasury has also become the authorized public body responsible for implementing policies related to the angel investments. Treasury also takes an active role to support venture capital in Turkey.

Small and Medium Enterprises Development Organisation (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 centers and joint use technology service centers. Based in Ankara, KOSGEB operates an extensive network of regional offices and centers.

Industrial Development Bank of Turkey (TSKB)

TSKB provides support for the sustainable development of Turkey, offering corporate loans, project financing, investment banking and consultancy services since the 1950s. Through financial subsidiaries offering real estate and sustainability solutions, TSKB also adds value to its customers’ investments.

From the day it was established, TSKB has been bringing together global funds with the investments of the Turkish business world, within the scope of the long-term business partnerships it has developed with supranational finance corporations. TSKB, which offers private consultancy solutions for the financial, technical and environmental sustainability of investments together with the long-term loans it provides, also creates value for the development and growth of the Turkish economy with its quality investment banking services. TSKB integrates the economic, social and environmental dimensions of its globally accepted sustainability practices in all of its banking processes, and provides support for the transition of the business world to a low carbon and more efficient production level.

TSKB, which has been deemed worthy of the Financial Times and IFC ‘Sustainable Banking of the Year’ award three times in a row, has been awarded at the Corporate Governance Summit thanks to the just, transparent and accountable corporate management it has shown since 2011. TSKB, which is the first Turkish bank to obtain an ISO 14001 Environmental Management System certificate, published the first GRIA+ approved sustainability report in the finance sector in 2013. TSKB also maintains its characteristic of being the first carbon neutral bank in Turkey, by offsetting its carbon footprint, since 2008. Headquarted in Istanbul, TSKB also has branches in Ankara and Izmir. 

Istanbul Venture Capital Initiative (iVCi)

Established in November 2007, Istanbul Venture Capital Initiative (iVCi) is Turkey’s first dedicated Fund of Funds and co-investment programme. Assets under management amount to EUR 160 million from public and private investors such as Small and Medium Enterprises 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 adviser to iVCi.

Press contacts:

EIF: David Yormesor, Communication Officer, Tel. +352 2485 81487, e-mail: d.yormesor@eif.org