Articles

The Private Equity Review - Turkey Fundraising

I. GENERAL OVERVIEW


In line with the government’s goal of establishing a powerful financial and securities
market, Turkey has become increasingly successful in its efforts to secure a future place
among the top players in the financial world and the most powerful economies. In
addition to these efforts, Turkey has attracted a significant amount of foreign capital and
embraced instruments of Western economies, such as private equity (PE), with more
interest. There is real potential in the Turkish PE market.
Following the entry into force of the Capital Markets Law2 (CML), the Capital
Markets Board (CMB) has started the process of issuing new secondary regulations
concerning the implementation principles of various capital markets institutions and
instruments regulated under the law. Within the scope of its ongoing legislative process,
the CMB issued two communiqués: the Communiqué on Venture Capital Investment
Companies (the VCIC Communiqué),3 which concerns the establishment and
operation of venture capital investment companies; and the Communiqué on Venture
Capital Investment Funds (the VCIF Communiqué), which enables the establishment of
venture capital investment funds (VCIFs) in Turkey. Certain foreign PE funds investing
in Turkey prefer to employ structures other than VCICs and VCIFS.

 

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The Private Equity Review
Reproduced with permission from Law Business Research Ltd.
This article was first published in The Private Equity Review – Edition 5
(published in March 2016 – editor Stephen L Ritchie)
For further information please email
nick.barette@lbresearch.com