AI Fund Awards 2018

Acquisition International - 2018 International Fund Awards 19 IF180017 Best SME Private Equity Firm 2018 - Turkey Mediterra Capital Established in 2011, Mediterra is now the leading private equity firm focusing on the mid-market and SME sector in Turkey. The firm acts as a trusted partner for mid-market and small companies in Turkey, supporting them to become leaders in their market with global management practices. The firm’s exclusive investment adviser, Mediterra Private Equity Limited, employs a world class team that has global private equity experience as well as Turkish deal making experience. This dedicated and professional team has served more than 30 boards in 11 countries, and invested over $2.0 billion globally and over $900 million of equity capital in Turkey. As such, they have the knowledge and understanding to drive the companies they invest in to success and provide strong return-on- investment for investors. Being based in Turkey and focusing on this market offers the firm a range of opportunities. The country does have a very competent and well capitalized banking system, however Turkish businesses are in general short of equity capital, which they need to finance the economic strong growth of c. 4% p.a. As the country has a young population (with an average age of 31) and a low savings rate (c. 13%) this is vital to its continued success. Due to lack of equity, banks also provide relatively modest levels of credit to SMEs. On the one hand, this creates very attractive investment opportunities for financial investors. On the other, investee companies’ customers and suppliers are in many instances undercapitalized, making customer/ supplier credit risk and cash flow management one of the key challenges for many businesses. The firm faces many challenges in this market, as value creation in portfolio companies require significant changes in strategy, growth management, organizational change, and balance sheet management. Most managers in the country are used to working together with executive shareholders. Investment managers have to be locally present in order to understand well the nuances both in sourcing and execution, and to support management teams with respect to aforementioned topics while running the companies. To support clients and the Turkish economy, Mediterra invests in high growth Turkish companies that have strong competitive advantages versus competitors. The firm diversifies its portfolio across consumer driven businesses, B2B businesses, and export driven manufacturing businesses. It works with these investee companies to boost growth and value creation by assisting them in recruiting best in class management teams, growing market share through acquisitions, entering new markets and bringing to market new products. Key value creation levers for Mediterra investee companies are revenue growth, cash generation and strategic value creation due to stronger market position and competitive power. Mediterra’s portfolio has low leverage and generally does not rely on leverage for value creation. Currently, the company manages c. €320 million AUM across two funds. Ultimately, thanks to its vast market knowledge, which draws on more than 30 years’ experience in in investing in over 11 different countries, Mediterra Capital has the expertise, knowledge and reach to support investors around the world. The firm’s ongoing goal is to remain the leading mid-market private equity investor in Turkey, and all of its future focus will be on achieving this ambitious aim. Mediterra Capital independent private equity firm focused on managing lower mid-market private equity funds investing in Turkey on behalf of institutional investors from around the world. We profile the firm to learn more and explore how it has achieved the incredible success it enjoys today. Company: Mediterra Capital Contact: Ahmet Faralyali Address: Sehit Halil Ibrahim Cad. No: 39, Istinye, Istanbul, Turkey Phone: 0090 533 810 10 91 Web: mediterracapital.com Mediterra Capital