EBRD backs Türkiye's mid-cap businesses with $40 million private equity bet

The European Bank for Reconstruction and Development (EBRD) has committed US$40 million to Templeton Türkiye Fund II (TTF II), a private equity fund targeting growth-stage mid-cap companies across Türkiye, as announced in an official statement published by the EBRD. The fund is targeting US$300 million in total commitments and will back companies with strong growth potential, solid technology fundamentals, and scalable business models. The EBRD’s investment came at a critical moment — helping TTF II reach its first close at a time when fundraising conditions in Türkiye have been exceptionally difficult.

Private equity remains an underdeveloped funding channel in Türkiye’s mid-market, and the EBRD’s anchor commitment is designed to demonstrate confidence and unlock additional investor interest in a segment with significant untapped potential.

EBRD Managing Director for Türkiye Elisabetta Falcetti said the investment reflects “confidence in their proven value-creation capabilities” and the Bank’s commitment to supporting private equity “at a time when fundraising is particularly difficult.” Templeton Türkiye CEO Erman Kalkandelen was direct about the fund’s ambition: backing “companies poised to become national champions and regional leaders,” with a particular focus on family-owned businesses, helping them institutionalize, professionalize, and prepare for successful exits — including through IPOs.

TTF II’s approach integrates ESG considerations across its portfolio, with green financing and a gender-focused lens built into its investment strategy. Franklin Templeton, Templeton Türkiye’s parent company, manages over US$1.6 trillion in assets globally and has been investing in Türkiye since the late 1990s.

The EBRD invested a record €2.7 billion in Türkiye in 2025 — making it the Bank’s largest country of operation by annual volume — and this equity commitment builds on that momentum, reinforcing private sector development as the cornerstone of the Bank’s engagement in one of its most important markets.