Ünlü secures $110m mandate for Turkey

The investment partnership with a large foundation covers a number of asset classes including infrastructure.

Ünlü & Co, a Turkey-based investment banking services and asset management group, has secured an evergreen multi-asset investment partnership with one of the largest foundations worldwide to invest in Turkey, PEI has learnt.

The partnership, which has initial committed capital of $110 million, will invest in a variety of asset classes, including private equity, public equity, infrastructure, non-performing loans, real estate and structured debt including mezzanine-type structures, Utku Ozay, a principal at Ünlü Alternative Asset Management, told Private Equity International.

The majority of the capital has been provided by the foundation, whose name could not be disclosed, while Ünlü & Co also committed some of the capital. “The foundation sees Turkey as a great place to invest and they choose us as an advisor for the new partnership,” Ozay added.

The “partnership”, which is “somewhere between a private equity fund and a managed account”, is expected to be invested in the next two to three years. The partnership could be co-investing alongside other investors.

The firm hasn’t made any investments from the vehicle yet, but it has identified a number of potential opportunities, he added. “We may do one investment in 2014, but we will wait for the right time to invest.”

The vehicle will be Ünlü & Co’s second investment vehicle. The firm’s $100 million debut fund, which focuses largely on consumer-related sectors, is fully invested.

The partnership comes as Ünlü & Co is currently in the market raising its third fund, which will focus on small to mid-cap private companies in Turkey. That vehicle, which will target between $200 million and $250 million, is expected to hold a first close in early 2015.

Ünlü & Co, which was founded in 1996, provides a broad service portfolio including corporate finance advisory, debt finance & advisory, equity capital markets, global markets and asset management.

Ünlü Alternative Asset Management was founded in 2006 to provide advisory services to institutional investors searching for private equity investments in Turkey.