EBRD mulls commitment to Turkish debutant

Eurasia Capital Partners, a nascent private equity firm based in Istanbul, is targeting €60 million for a first-time fund to invest in small- to medium-sized Turkish companies. The European Bank for Reconstruction and Development is close to committing €10 million to the fund, according to documents published on the development bank’s website.
 
Eurasia Capital Partners was established by two managing partners Ogeday Karahan and Eren Kuraner. Between them the two founders have extensive experience in the corporate, banking and consulting realms, but this is their first foray into private equity.
 
The target size for the fund has been scaled down considerably since it began marketing before the onset of the financial crisis. When the IFC, the private investment arm of the World Bank, originally considered the fund for investment in October 2007, Eurasia had been targeting as much as €150 million, according to the IFC website.
 
The reduction in size will not, argue the founders, have a significant impact on the overall strategy, because the limited partners will be available for co-investment on a deal-by-deal basis. The fund is likely to complete its first deal by early 2010, which includes LP co-investment. The firm declined to comment further on the fundraising process.
 
The fund is targeting Turkish companies in a variety of sectors, including consumer goods, logistics, telecoms, technology and healthcare.
 
Earlier this week it emerged that European buy-out firm Bridgepoint was close to completing its first deal in Turkey: the acquisition of a joint controlling stake in vehicle inspection company Tüvturk.