Turkey May Enter a New 10-year Cycle That Will Attract Long-Term Foreign Capital
Turkey may enter a new 10-year cycle that will attract long-term foreign capital
Barış Öney, Founding Partner and Managing Director of Globalturk Capital, stated that long-term investment funds are closely monitoring Turkey and added, "These investments won't happen overnight, but when they do come, they are typically for a 10-year period or even longer. Personally, I believe Turkey is entering a new 10-year cycle in terms of attracting this long-term capital."
Öney, speaking to an AA reporter ahead of the "Private Equity and Investment Outlook 2025" conference to be held for the 6th time by Globalturk Capital at the London Stock Exchange (LSE) on February 27, responded to questions about foreign investors' approach to Turkey and expectations from the conference.
Öney mentioned that representatives from long-term funds, including private equity and venture capital funds, will attend the conference. He explained that when these funds invest in companies, they typically stay in the investment for at least 5-7 years and are considered direct foreign investment.
Describing these funds as "patient capital," Öney said, "This is not capital affected by market volatility or daily fluctuations, which makes it very valuable for Turkey because it doesn't just provide financing to companies. These funds also contribute to the strategies of companies with their knowledge and experience, and they can open new markets around the world. Therefore, we are trying to attract these funds to Turkey."
Recalling some challenges faced in the last 5-6 years, Öney pointed out that due to the rational economic policies being implemented in Turkey, these funds have started to move again towards investing in Turkey and have begun observing the country.
Some funds began investing in the final months of last year Öney shared that some funds that had not invested in Turkey for a long time began making investments in the final months of last year.
He mentioned that issues such as currency and inflation reduction are important for these investors and continued, "Long-term fund investors start observing the country when they see rationality in Turkey's medium- and long-term policies and trust the economic management and the market. These investments do not happen overnight, but when they come, they are typically for 10 years or even longer. Personally, I believe Turkey is entering a new 10-year cycle in terms of attracting this long-term capital, and I expect to see investments gradually coming in this area. From the second half of the year, we may see new investments and funds coming to Turkey. It is crucial not to deviate from rational policies."
"Turkish private sector is experienced in operating during turbulent times" Öney pointed out that predictability depends on many macro indicators and mentioned that global policies have changed significantly with the new administration in the US.
He said that investors are trying to understand these developments and are in a "wait-and-see" mode. "The world has become unpredictable, and the long period ahead will not be stable either. On the other hand, the Turkish business world has managed to navigate such turbulent periods and grow its companies, bringing them to very good positions. Therefore, our message is 'Come invest in these companies, trust our experienced businesspeople who know how to operate in turbulent times,'" he commented.
Öney added that the capital in question is mainly flowing into export-oriented industries, technology sectors, companies contributing to green transformation, and high-demand consumer sectors like healthcare.
The conference, organized by Globalturk Capital on February 27, will be attended by representatives of private companies from Turkey, as well as officials from many international institutions.
Resource: Anadolu Ajansı , Dünya Gazetesi, Dik Gazete, Gerçek Fethiye, Canlı Gaste, En Son Dakika