Garanti Securities and Cerberus Capital Management, L.P, signed an agreement on Tuesday to form a $400 million joint initiative to pursue investments.
The partnership agreement, signed in İstanbul between Ferit F. Şahenk, the chairman of the Doğuş Group, and Dan Quayle, the former US vice president and current chairman of Cerberus Global Investments, set out the terms for an investment of $200 million each in a private equity fund aimed at acquisitions and funding of Turkish businesses. Metin Ar, the president and CEO of Garanti Securities, set out the ambition of the fund going forward, which he said was planning to raise a further $600 million in the near future from other investors. This would bring the fund’s equity to $1 billion, which would be leveraged to make available $2 billion in total for investments in the Turkish economy.
Garanti Securities CEO elaborated that this would be used for approximately 10 investments of between $50 million and $250 million each, across all industries and business sectors, wherever — in Mark A. Neoprent, the chief operating officer of Cerberus’s words — “opportunistic” investments presented themselves. Garanti insiders noted that the tobacco and defense industries would not be considered on ethical grounds, while the energy sector was being looked at with particular interest.
On the rationale for the partnership, both sides expressed the virtues of a deal, which draws together the top-performing Turkish investment bank, winners of the “Global Finance” award for best investment bank in Turkey from 2007 onwards, and a US private equity partner with $23 billion under management. Neoprent emphasized Cerberus’ expertise in the operational side of the business, which he said “no other private equity firm has” and would prove invaluable to delivering value from their joint investments, at all stages of the economic cycle.
Former Vice President Quayle and Cerberus’ Chief Operating Officer Neoprent both spoke of Cerberus’ desire to not only enter the fast-growing Turkish market, but to join forces with “the best,” and emphasized the commonalities between the parties in terms of a culture of excellence, “integrity and hard work.” Both sides have been courting each other since meeting at Davos in January, and appeared excited to be working together to seize on opportunities available in an economy which grew faster than any other OECD country in the first half of 2011. When asked whether the fund would invest outside of Turkey, Neoprent was clear that “it will be at least 80 percent focused on Turkey, though other regions in which Turkish enterprises operate may be considered.”
Some in attendance spoke privately of international private equity funds being late to the game in Turkey, missing out on almost a decade of staggering growth. Private equity investment in Turkey has grown from a mere $91 million in 2005 to $10 billion today. Yet, they equally suggested that the deal was likely to be a resounding success, with no sign of gross domestic product (GDP) growth abating in the country, despite turmoil in European markets brought on by the near certainty of sovereign default in Greece, and the precarious sovereign debt position of other eurozone countries such as Spain and Italy.
(Source: Today Zaman). Link a la noticiaGaranti Securities and Cerberus Capital Management, L.P, signed an agreement on Tuesday to form a $400 million joint initiative to pursue investments.
The partnership agreement, signed in İstanbul between Ferit F. Şahenk, the chairman of the Doğuş Group, and Dan Quayle, the former US vice president and current chairman of Cerberus Global Investments, set out the terms for an investment of $200 million each in a private equity fund aimed at acquisitions and funding of Turkish businesses. Metin Ar, the president and CEO of Garanti Securities, set out the ambition of the fund going forward, which he said was planning to raise a further $600 million in the near future from other investors. This would bring the fund’s equity to $1 billion, which would be leveraged to make available $2 billion in total for investments in the Turkish economy.
Garanti Securities CEO elaborated that this would be used for approximately 10 investments of between $50 million and $250 million each, across all industries and business sectors, wherever — in Mark A. Neoprent, the chief operating officer of Cerberus’s words — “opportunistic” investments presented themselves. Garanti insiders noted that the tobacco and defense industries would not be considered on ethical grounds, while the energy sector was being looked at with particular interest.
On the rationale for the partnership, both sides expressed the virtues of a deal, which draws together the top-performing Turkish investment bank, winners of the “Global Finance” award for best investment bank in Turkey from 2007 onwards, and a US private equity partner with $23 billion under management. Neoprent emphasized Cerberus’ expertise in the operational side of the business, which he said “no other private equity firm has” and would prove invaluable to delivering value from their joint investments, at all stages of the economic cycle.
Former Vice President Quayle and Cerberus’ Chief Operating Officer Neoprent both spoke of Cerberus’ desire to not only enter the fast-growing Turkish market, but to join forces with “the best,” and emphasized the commonalities between the parties in terms of a culture of excellence, “integrity and hard work.” Both sides have been courting each other since meeting at Davos in January, and appeared excited to be working together to seize on opportunities available in an economy which grew faster than any other OECD country in the first half of 2011. When asked whether the fund would invest outside of Turkey, Neoprent was clear that “it will be at least 80 percent focused on Turkey, though other regions in which Turkish enterprises operate may be considered.”
Some in attendance spoke privately of international private equity funds being late to the game in Turkey, missing out on almost a decade of staggering growth. Private equity investment in Turkey has grown from a mere $91 million in 2005 to $10 billion today. Yet, they equally suggested that the deal was likely to be a resounding success, with no sign of gross domestic product (GDP) growth abating in the country, despite turmoil in European markets brought on by the near certainty of sovereign default in Greece, and the precarious sovereign debt position of other eurozone countries such as Spain and Italy.
(Source: Today Zaman). Link a la noticiaGaranti Securities and Cerberus Capital Management, L.P, signed an agreement on Tuesday to form a $400 million joint initiative to pursue investments.
The partnership agreement, signed in İstanbul between Ferit F. Şahenk, the chairman of the Doğuş Group, and Dan Quayle, the former US vice president and current chairman of Cerberus Global Investments, set out the terms for an investment of $200 million each in a private equity fund aimed at acquisitions and funding of Turkish businesses. Metin Ar, the president and CEO of Garanti Securities, set out the ambition of the fund going forward, which he said was planning to raise a further $600 million in the near future from other investors. This would bring the fund’s equity to $1 billion, which would be leveraged to make available $2 billion in total for investments in the Turkish economy.
Garanti Securities CEO elaborated that this would be used for approximately 10 investments of between $50 million and $250 million each, across all industries and business sectors, wherever — in Mark A. Neoprent, the chief operating officer of Cerberus’s words — “opportunistic” investments presented themselves. Garanti insiders noted that the tobacco and defense industries would not be considered on ethical grounds, while the energy sector was being looked at with particular interest.
On the rationale for the partnership, both sides expressed the virtues of a deal, which draws together the top-performing Turkish investment bank, winners of the “Global Finance” award for best investment bank in Turkey from 2007 onwards, and a US private equity partner with $23 billion under management. Neoprent emphasized Cerberus’ expertise in the operational side of the business, which he said “no other private equity firm has” and would prove invaluable to delivering value from their joint investments, at all stages of the economic cycle.
Former Vice President Quayle and Cerberus’ Chief Operating Officer Neoprent both spoke of Cerberus’ desire to not only enter the fast-growing Turkish market, but to join forces with “the best,” and emphasized the commonalities between the parties in terms of a culture of excellence, “integrity and hard work.” Both sides have been courting each other since meeting at Davos in January, and appeared excited to be working together to seize on opportunities available in an economy which grew faster than any other OECD country in the first half of 2011. When asked whether the fund would invest outside of Turkey, Neoprent was clear that “it will be at least 80 percent focused on Turkey, though other regions in which Turkish enterprises operate may be considered.”
Some in attendance spoke privately of international private equity funds being late to the game in Turkey, missing out on almost a decade of staggering growth. Private equity investment in Turkey has grown from a mere $91 million in 2005 to $10 billion today. Yet, they equally suggested that the deal was likely to be a resounding success, with no sign of gross domestic product (GDP) growth abating in the country, despite turmoil in European markets brought on by the near certainty of sovereign default in Greece, and the precarious sovereign debt position of other eurozone countries such as Spain and Italy.
(Source: Today Zaman). Link a la noticia