What Differentiates Globalturk Capital from Others?

Most Turkish companies are not ready to take investment from or partner with foreign direct investors. If we leave apart the top 1000, the remaining 500,000 plus companies have difficulty fulfilling prerequisites needed to receive foreign investments. As Globalturk Capital, we start a long journey with companies who lack such prerequisites at this point to prepare them for this.

In this journey, we analyze the company, its operations, strengths and structure. We then create financial models and identify how much capital is required to grow the company in the next 5 years and where this capital can be secured from. If we believe that the company requires a foreign strategic or a private equity investor to raise this amount, we find an investor for the company. However, we then stay in the company together with the investor and take necessary steps jointly to grow the company. Such model of staying in the company post-investment with the investor does not exist in Turkey. Actively participating in the management of the company after the investor invests is our fundamental philosophy and uniqueness which differentiates Globalturk Capital from other investment houses and advisors.

Based on my observations and over 20 years of experience in the sector, I think Turkish companies require assistance after they form partnerships with foreign strategic and private equity investors. Foreign investors are not familiar with Turkey and their way of doing business which has many cultural subtleties. Naturally Turkish businessmen tend to continue their past business practices because of their habits after the partnership. Expert interventions are required at this point to prevent problems, which might potentially rise from this issue.

We can think of these kinds of partnerships as marriages. The first six months to one year could be seen as sweet honeymoon months for these partnerships just like in normal marriages. Serious complications could arise after this period. To overcome such negative tendencies, our involvement plays a crucial role. Knowing and understanding both the expectations of foreign investors and Turkish business owners, we step in before any potential build-up between them. Therefore staying in the company after the partnership is formed, has significant importance for those reasons and beyond.

Companies, who were established 5-10 years ago and are seeking capital and know-how to expand and grow their businesses, need experts in their fields like us. We stay in companies as board of directors after we find the investors and have them invest. This new model is also favored by foreign investors. For example, after we started working with Tempo Call Center, Japanese Mitsui invested into the company. We are in the Company with Mitsui and we are undergoing a very professional process together. Another example is Sistem 9 Medya, where we are in the board of the company with NBK Capital and the partnership is going smoothly.

We are also trying to raise USD 100 million private equity fund from foreign sources for Turkey. We have partnered with US’s top “Emerging Markets SME Fund’’ for that purpose. We had provided funds to invest in companies in Turkey. Apart from these we are consulting and seeking partners to companies located in China, Peru, Georgia and Poland. Therefore we have operations in and out of Turkey. We are working towards becoming a boutique address for company mergers and acquisitions and private equity investments with post-investment management involvements.