Dubai's Abraaj raises more than $500m to invest in Turkey

Private equity firm announces the closure of dedicated Turkey fund which has made its first two investments
Dubai's Abraaj raises more than $500m to invest in Turkey
Arif Naqvi is the Founder and Group Chief Executive of The Abraaj Group.
By Staff writer
Tue 26 Jul 2016 01:33 PM

Dubai-based private equity firm Abraaj Group has announced the closure of its first dedicated Turkey fund which has made its first two investments.

The Abraaj Turkey Fund I had been launched in 2014 and Abraaj said in a statement that it has raised a total of $486 million with a further $40 million to go towards co-investments, compared with an original target of $500 million.

Abraaj said ATF I will leverage the group’s on-the ground investment experience in Turkey to capture opportunities presented by strong mid-market growth. The fund targets well-managed, mid-sized businesses operating primarily in sectors poised to benefit from growing domestic consumption such as consumer goods and services, healthcare, financial services, logistics and retail. 

To date, ATF I has made two investments - in Hepsiburada, a Turkish e-commerce firm and in Fibabanka, one of Turkey’s most prominent banks.

Arif Naqvi, founder and group chief executive of The Abraaj Group said: “The successful closing of our first dedicated Turkey Fund reflects our strong conviction on the Turkish economy and the attractive investment opportunities available.

"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. We have long recognized the Turkish consumer as a reliable source of investment returns, having generated over US$ 800 million in exit proceeds to date.”

A coup attempt in Turkey earlier this month killed more than 200 people and damaged financial markets there.

Abraaj has been a leading investor in the private equity industry in Turkey, where it has deployed more than $900 million across 11 investments.

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