Private equity investors ‘bullish’ on Turkey

Turkish companies are drawing in private equity funds that feel the country is ripe for investment, according to an article by the Web site businessneweurope.eu.

In a story on Tuesday, the Web site pointed to Turkey’s large and relatively young workforce, expanding regional trade links, its increasingly open economy and developing capital markets as factors that have attracted investors in recent months.

Some of the recent big private equity purchases were focused particularly on health care. In January, Istanbul-based Rhea Investments acquired a majority stake in SETA Medical Products, valued at $4.6 million. “Healthcare is one of the fastest growing and most vital sectors in Turkey and globally,” the site quoted Onur Takmak of Rhea as saying. Rhea also purchased a 60 percent stake in Netsafe Information Technologies, a software company valued at $1 million.

Carlyle Group of the United States also invested heavily in the Turkish health care sector, buying a 40 percent stake in Medical Park. Since 2005, Medical Park has grown to be Turkey’s second-largest health care services company, running and operating 13 hospitals. Carlyle is reportedly in talks to purchase stakes in two other Turkish companies, according to the Web site.

Abu Dhabi-based Investment firm Invest AD, which manages several funds investing in the Middle East, North Africa and Turkey, invested 50 million euros in Turkish logistics firm Ekol Lojistik in December. According to the Al-Bawaba Web site, Invest AD is currently in talks with Turkish companies in all sectors.

Business new europe quoted Invest AD CEO Nazem Al Kudsi as saying: “Turkey has all the most positive traits for investment found in our region – a youthful and growing population, a deep pool of managerial expertise, expanding trade links, an economy that is opening up and fast-developing capital markets.”

In October, UK private equity firm Bridgepoint Capital bought a 33 percent stake in TuvTurk, a vehicle inspection group. Bridgepoint told business new europe that it expects the sector to grow as a result of growing car ownership and the need for Turkey to comply with European testing standards on its path toward EU membership