The “Recap of the 3rd Annual Executive Briefing on Private Equity in Turkey and Environs” event, organized by EMPEA and GlobalTurk Capital at the London Stock Exchange, was held in London on the 7th of February.
During his speech at the event, Deputy Prime Minister Mehmet Şimşek said that Turkey has substantially decreased the tax burden on companies and that it attracts international investors thanks to its competitive labor costs. “Turkey is an energy hub connecting the east and the west. Europe is the core market for Turkey, but we should not neglect Asia and Africa,” Şimşek said. He offered the participants insights into Turkey’s economic agenda, supporting his speech with a presentation that focused on the drivers of growth in Turkey, inflation and fiscal policy, the structural reform agenda, and Turkey’s long-term prospects.
ISPAT President Arda Ermut also addressed private equity executives during the event, touching on Turkey’s investment climate and growth prospects. “Thanks to Turkey’s location offering access to markets in Europe, the Middle East, and Africa, export-oriented companies have significantly grown in recent years. With managerial skills, extensive international networks, and equity financing, private equity investors can enable these companies to realize their potential,” Ermut said.
During the last 10 years, private equity driven investments have claimed a 65 percent share in all inbound investments. The London Stock Exchange has a strong private equity track record and is Europe’s leader for number and size of initial public offerings. Turkey is one of the most attractive destinations for private equity as well. Over the past 5 years, private equity deals amounted to more than USD 11 billion. Thanks to top-quartile returns of the first funds raised back in early 2000s, Turkey’s private equity scene has been transformed dramatically with small to large capital investors as well as local, regional, and international players actively pursuing new deals in the country.