Abraaj said in a July 26 statement it had raised $ 486 million as well as a further $ 40 million for co-investments, having initially targeted $ 500 million.
The fund received capital commitments from a range of new and existing investors, with European and North American investors accounting for 70% of the amount raised.
The fundraising took place against a backdrop of political and economic turbulence in Turkey, which has seen an attempted coup in July, two general elections in 2015 and multiple terror attacks over the past 12 months.
Despite the chaos, which has seen President Erdogan declare a three-month state of emergency and the value of the lira plummet, Abraaj’s head of Turkey and central Asia Selçuk Yorgancıoğlu remains optimistic about investment.
In the statement, he said: “The Turkish market remains under-served by private equity, offering clear opportunities to provide smart capital to drive expansion among well-managed companies with the capability to become market leaders.”
Though the fund is Abraaj’s first Turkey-focused vehicle, the firm is no stranger to doing deals in the country.
A track record of investing in the country may explain why Western investors have retained their appetite despite the less-than-straightforward investment climate.
Abraaj has made 11 investments and has deployed more than $ 900 million in capital in Turkey from other funds.
The firm’s ability to source deals has been shown by the speed with which it has put capital from its latest fund to work. So far, the firm has completed two deals from its latest fund – in e-commerce company Hepsiburada and Turkish bank Fibabbanka.