Invest AD, SBI to launch $100m Turkish fund

The Abu Dhabi-based private equity firm and the Japanese conglomerate have once again partnered on an emerging market-focused fund.

Japan’s SBI Holdings has teamed up with Abu Dhabi financial services company Invest AD to set up a $100 million private equity fund investing in Turkey. 

According to a statement, the joint venture will provide growth capital to Turkish companies in sectors including consumer goods, food, retail, services and pharmaceuticals and healthcare. SBI and Invest AD are committing $50 million each.

“I have a strong belief in Turkey’s economy, and believe that our partnership with Invest AD can add significant value to ambitious Turkish companies,” Yoshitaka Kitao, representative director and CEO of SBI Holdings, said in the statement.

The partnership follows a similar agreement between the two parties in late last year to invest up to $100 million in Africa.  According to the statement, the two will raise third-party money for similar funds.

Established in 1977, government-owned Invest AD has already made one investment in Turkey by way of a significant minority stake purchase in EKOL Logistics in late 2009. The firm has also invested in the Middle East and Africa.

On the other hand, the Japanese conglomerate has been setting up joint ventures to tap into different markets. In October last year, SBI agreed to set up two venture capital funds of undisclosed amount with Shanghai’s Fudan University, following the joint ventures in 2008 with Beijing University and Tsinghua University with sizes of $100 million and $30 million respectively.

Another partnership was struck with Jefferies Group, a New York-headquartered securities and investment banking firm. SBI and Jefferies agreed to establish two private equity funds totaling $200 million to invest in Asia and the US.