Gulf group banks on Turkey

G Capital, the private equity subsidiary of Gulf Finance House, has acquired Turkey’s Adabank in a deal worth $75m.

If the aggregate target size of $6.5 billion of funds being raised targeting investments in Turkey and beyond isn't sufficient proof, the slew of deals in Turkey underscores the country's increasing allure to private equity investors. The latest deal to be agreed there saw G Capital make a $75 million investment in Adabank.

Dubai-based G Capital, a Dubai based company and a subsidiary of Gulf Finance House, partnered with Turkish conglomerate Gürmen Group to make its first foray into the country’s banking sector, acquiring Istanbul-based Adabank. The bank was put up for sale by the Saving Deposit Insurance Fund.

“We have been working to acquire a bank in Turkey for more than a year. Turkey is a growing market with many good investment opportunities, and this acquisition should create substantial value for our investors and shareholders,” Hisham Alrayes, managing director of G Capital, said in a statement.

Turkey is increasingly gaining the momentum for the country’s compelling fundamentals, such as its youthful population which has considerable spending power.

Recent deals in the emerging market include NBGI Private Equity and Ethemba Capital’s majority acquisition of pharmaceuticals company the Birgi Mefar Group, and Mid Europa Partners’ investment in private hospital operator Kent Hospital Group.

On the fundraising front, Abu Dhabi financial services company Invest AD teamed up with Japan’s SBI Holdings in May to set up a $100 million Turkey-dedicated fund, targeting sectors including consumer goods, food, retail, services and pharmaceuticals and healthcare.