EIF launches Turkish fund of funds

In a bid to stimulate growth and innovation in Turkey, the European Investment Fund (EIF) has backed a new fund of funds which will allocate to growth capital and early stage vehicles in the country.

The European Investment Fund has joined forces with the Small and Medium Enterprises Development Organisation of Turkey (KOSGEB) for the launch of a Turkish fund of funds. 

Both institutions have committed up to €60 million each, according to a statement. The fund’s target is €250 million and a final close is expected in July. 

EIF will act as advisor to the fund, which will be used to back growth capital funds, whilst also tapping into other early stage funds. 

“This new fund of funds builds on the experiences that we have gained during the past six years of pioneering work under iVCi in the private equity sector in Turkey,” Richard Pelly, chief executive of the 
European Investment Fund, said in a statement. 

The partnership between EIF and KOSGEB “will ensure the continuation of a long-term investment scheme that we expect to deliver a significant stimulus to equity investments into growth-focussed enterprises,” he added. 

“The new initiative will focus on growth and innovation, both key challenges for our institution and for Turkey. We are convinced that other public and private partners will join this initiative and confident that with their support we will reach our target fund size,” Mustafa Kaplan, president of KOSGEB, said. 

The Turkish Growth and Innovation Fund succeeds the Istanbul Venture Capital Initiative (iVCi), a 2007 vintage vehicle, which was Turkey’s first fund of funds and which is now fully deployed.  Overall, €134 million has been committed to date to funds managed outside Istanbul.