EMPEA Insight: Turkey (March 2012)
Turkey’s unique geographic location has long been one of its defining characteristics: a country positioned at the nexus of civilizations and trade routes. While its recent history has been one of macroeconomic volatility, today, Turkey is widely perceived as an island of stability standing between two regions facing immense challenges.
Private equity investors increasingly hold a favorable perception of Turkey. Seeking to capitalize on the country’s growth, macroeconomic stability and compelling demographics, investors have driven deal activity from nine transactions in 2009 to 31 in 2011, with over US$1 billion invested over the three-year period. Nevertheless, as a nascent private equity market, Turkey can present challenges to GPs and LPs. This report explores the dynamics at play within Turkey’s private equity market, and highlights some risks and opportunities for investors.