Japan’s SBI Holdings and Abu Dhabi’s Invest AD to invest $100 million in Turkish private equity

Japan’s SBI Holdings, Inc. and Abu Dhabi financial services firm Invest AD are investing in a new joint private equity fund worth $100 million and focused on acquisitions in Turkey.

The fund, to be jointly managed by the two companies through an office in Istanbul, will supply growth capital and employ its international networks and expertise to help promising companies to improve economies of scale, grow market share and expand overseas.

SBI and Invest AD will invest equally in the fund, which is looking at opportunities in several sectors, including consumer goods, food, retail, services and pharmaceuticals and healthcare. The partners may consider taking on other investors for specific deals.

“We’re looking to expand SBI Group’s asset management activities across the world through partners with on-the-ground expertise,” said Yoshitaka Kitao, Representative Director and Chief Executive Officer of SBI Holdings, Inc..

“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.”

The Turkish economy is forecast to grow an average 3.8 percent annually over the next four years, according to the IMF. The country has a strong consumer sector that is likely to be boosted by a fast growing and youthful population.

“We’re developing a strong long-term interest in Turkey, a strategically important country in the region, which has seen robust economic growth in the last 10 years,” said Nazem Fawwaz Al Kudsi, chief executive officer of Invest AD. 

“Our partnership with SBI -- a highly respected institution with global reach – is testament to the high level of investor interest and confidence in Turkey.”

Invest AD has already made one acquisition in Turkey, buying a significant minority stake in late 2009 in EKOL Logistics, one of the country’s biggest players in Turkish-European trade. The company also has private equity investments in the Middle East and Africa.

The SBI-Invest AD partnership in Turkey follows a similar agreement between the two companies in late 2010 to invest in a joint fund worth up to $100 million for Africa. After deploying capital through the two funds, Invest AD and SBI will look to raise similar funds, which will be open to other investors.