EBRD commits €25 million to Mediterra Capital Partners III

• EBRD commits up to €25 million to Turkish private equity fund Mediterra Capital Partners III
• The fund supports growth-oriented lower-mid-market companies in Türkiye
• IFC and FMO are amongst other cornerstone investors

The European Bank for Reconstruction and Development (EBRD) is committing up to €25 million to Mediterra Capital Partners III (Mediterra III), a fund in which the International Finance Corporation (IFC) and the Dutch Entrepreneurial Development Bank (FMO) are also cornerstone investors.

Mediterra III seeks to generate long-term capital growth from equity and equity-related investments in lower-mid-market companies in Türkiye.

Through this investment, the Bank aims to help improve the resilience of the Turkish economy by supporting the development of equity as an alternative funding source. Mediterra takes a proactive, hands-on approach to implementing sustainable growth strategies and environmental, social and governance (ESG) processes across all of its investments. This enables its portfolio companies to deliver strong growth and become more competitive.

Anne Fossemalle, EBRD Director for Private Equity Funds, said: "We are happy to continue supporting Mediterra Capital, an important partner for the EBRD in Türkiye. Fundraising in Türkiye has not been easy in recent years. This transaction is another example of good and increasingly important cooperation between development finance institutions (DFIs) in assisting an established private equity fund manager in achieving a first closing. Mediterra's new fund aims to help local businesses succeed while promoting responsible development and delivering financial returns."

Mediterra III will invest in numerous sectors, with a particular focus on companies that are technology-, export- or consumer-driven.

Mediterra was one of the first fund managers that the EBRD supported in the Turkish private equity market. The Bank is a cornerstone investor in both of Mediterra's predecessor funds, Mediterra Capital Partners I and Mediterra Capital Partners II.

Murat Erkurt, Co-Founder of Mediterra Capital Management, said: "Mediterra is grateful to the EBRD, the IFC, FMO and the Technology Development Foundation of Turkey (TTGV) as the cornerstone investors of Fund III. They have consistently supported Mediterra as value-added investors in our predecessor funds over the last decade. Mediterra has delivered top-decile cash returns for its investors by executing a consistent strategy of being a catalytic investor in growth-oriented, lower-mid-market Turkish companies. Fund III is set to deliver a best-in-class performance in emerging-market private equity, thanks to its proven track record and the positive outlook for Türkiye, with its stabilising macroeconomy and increasing strategic importance for trading partners."

The EBRD is one of Türkiye's key investors, with €19.9 billion invested through 447 projects and trade finance limits since 2009, the majority of it in the private sector.

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