Japanese partner for Abu Dhabi's investment bank's Turkey trot

Invest AD is partnering with a Japanese buyout firm to launch a $100 million fund targeting Turkey, riding the country's fast economic growth in hopes of healthy returns.

Invest AD is partnering with a Japanese buyout firm to launch a $100 million fund targeting Turkey, riding the country's fast economic growth in hopes of healthy returns. Sammy Dallal / The National.

Invest AD, an investment bank owned by the Abu Dhabi Government, is teaming up with a Japanese company to launch a $100 million buyout fund focused on Turkey.

More Business news: Editor's pick of today's headlines

Last Updated: May 24, 2011

Torch buyers upset at changes A group of buyers in the world's tallest residential tower are in a dispute with the developer. Read article

Economics hold up greenhouse gas project between Adnoc and Masdar Abu Dhabi wants to move ahead with the Gulf's first carbon capture network but has yet to get the green light nearly three years into the project. Read article

Industry Insights // Dubai's Swiss Cheese 0-14 building proves to be eco-friendly The 0-14 tower in Dubai's Business Bay was designed to stand out, but it's surprised its own architects by proving to be an energy-saving phenomenon. Read article

LinkedIn sparkles but may flatter to deceive LinkedIn debuted on the New York Stock exchange last week, but is it worth the share price? Read article

The joint venture between Invest AD and Japan's SBI Holdings will be the second for the two companies after they set up a $100m Africa fund last year. Each of the two parties will contribute $50m to the new Turkey fund, according to a statement.

"We're developing a strong long-term interest in Turkey, a strategically important country in the region which has seen robust economic growth in the last 10 years," said Nazem Fawwaz al Kudsi, the chief executive of Invest AD.

Invest AD already has an interest in Turkey through its existing private equity funds. The company in 2009 bought part of EKOL Logistics, which handles shipments of goods between Turkey and Europe.

Buyout companies in the Middle East have been enamoured of Turkish investments for some years, thanks to its steady economic growth and close trade ties with Europe. Abraaj Capital, the region's biggest private equity firm, has investments there, as do a number of other regional investors.

Economic growth in Turkey last year hit 8.2 per cent, according to IMF figures. The IMF estimates growth this year at 4.6 per cent.

For SBI, the partnership will yield access to Invest AD's experience in the region, said Yoshitaka Kitao, SBI's chief executive. The companies plan to open an office in Istanbul to run the fund.

"We're looking to expand SBI Group's asset management activities across the world through partners with on-the-ground expertise," Mr Kitao said, adding that he had a "strong belief" in Turkey's economic prospects.

Invest AD and SBI are eyeing investments in the consumer goods, food, retail, services and health care sectors, and may bring in outside investors to participate in selected deals.