EBRD invests in Turkish private equity fund Mediterra

ISTANBUL

The European Bank for Reconstruction and Development (EBRD) has committed up to 25 million euros to Turkish private equity fund Mediterra Capital Partners III (Mediterra III).

The International Finance Corporation (IFC) and the Dutch Entrepreneurial Development Bank (FMO) are also cornerstone investors in the fund.

Mediterra III seeks to generate long-term capital growth from equity and equity-related investments in lower-mid-market companies in Türkiye.

The EBRD said in a statement that through this investment, it aims to help improve the resilience of the Turkish economy by supporting the development of equity as an alternative funding source.

Mediterra III will invest in numerous sectors, with a particular focus on companies that are technology-, export- or consumer-driven, according to the statement.

Mediterra was one of the first fund managers that the EBRD supported in the Turkish private equity market.

Fundraising in Türkiye has not been easy in recent years, said Anne Fossemalle, EBRD director for Private Equity Funds,

“This transaction is another example of good and increasingly important cooperation between development finance institutions (DFIs) in assisting an established private equity fund manager in achieving a first closing,” she added.

Fund III is set to deliver a best-in-class performance in emerging-market private equity, thanks to its proven track record and the positive outlook for Türkiye, with its stabilizing macroeconomy and increasing strategic importance for trading partners, said Murat Erkurt, co-founder of Mediterra Capital Management.

The EBRD is one of Türkiye’s key investors, with 19.9 billion euros invested through 447 projects and trade finance limits since 2009, the majority of it in the private sector.