Daruma Corporate Finance, an Istanbul-based investment adviser, and Madrid-based investment bank and asset manager N+1 International set up a partnership to raise as much as 1 billion euros ($1.25 billion) of private equity funds.
N+1, which has about 3.1 billion euros of assets under management, and Daruma will use the funds to invest in Turkish assets and to provide financing for Turkish and European mid- segment companies, Okan Altug, managing partner at Daruma Corporate, said at a news conference in Istanbul today.
Last year, 46 out of a total of 241 mergers and acquisitions in Turkey were made by private equity firms, Deloitte & Touche LLP said in a report in January. The industry is expanding after Turkey’s economy grew 8.5 percent in 2011, the most after China among the Group of 20 industrialized nations, attracting finance companies and banks including Russia’s OAO Sberbank (SBER) and Mizuho Corporate Bank Ltd. (8411) of Japan to Turkey this year.
“Our main target is to provide financing, including mezzanine finance, for about 1,500 top medium and large companies in Turkey as well as mid-segment companies in Europe,” Altug said. “We will also provide advisory services for mergers and acquisitions valued between 25 million euros and 250 million euros.”
N+1 and Daruma Corporate plan to raise between 250 million euros and 400 million euros for energy investments, according to a statement handed to reporters today. They will also add a mezzanine fund of 200 million euros to 300 million euros this year and a commercial real estate fund of 200 million euros to 300 million euros in 2013, it said. “These will be close end funds,” Altug said.
The partnership, named N+1 Daruma, was created after Daruma Corporate sold a 20 percent stake to N+1 International and bought 5.25 percent of N+1 International in a so-called equity swap, Altug said.
“Mezzanine finance will be booming in Turkey in coming years and there is big appetite for international investors for this,” said Santiago Eguidazu Mayor, board member of the N+1 Daruma and founder of N+1, at the conference.
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