EBRD backs growth in Türkiye with equity investment

• EBRD invests in Templeton Türkiye Fund II
• Partnership seeks to support growth of medium-sized companies
• Project will deepen equity markets in the country

The European Bank for Reconstruction and Development (EBRD) is committing US$ 40 million (€34.5 million) to Templeton Türkiye Fund II (TTF II) to fund equity investments in mid‑cap companies in Türkiye.

The fund is targeting US$ 300 million (€258.8 million) in total commitments and will invest across a range of sectors, with a focus on companies demonstrating strong growth potential, robust business and technology fundamentals, and scalable models. The partnership aims to support the expansion, competitiveness and long‑term development of mid-cap companies.

Templeton Türkiye is an existing EBRD client with a proven track record of portfolio value creation and exit realisation, operating as an independent team within Franklin Templeton, a global asset manager with over US$ 1.6 trillion (€1.38 trillion) of assets under management and more than 9,000 employees worldwide. Franklin Templeton has been investing in Türkiye since the late 1990s, demonstrating a longstanding commitment and significant expertise in the market.

Elisabetta Falcetti, the EBRD’s Managing Director for Türkiye and the Caucasus, said: “We are delighted to be continuing our partnership with the Templeton Türkiye team. Our investment reflects both our confidence in their proven value‑creation capabilities and our commitment to supporting private equity in Türkiye at a time when fundraising is particularly difficult. Templeton will help dynamic Turkish businesses to grow sustainably, improve their competitiveness and demonstrate the importance of responsible investment practices.”

Erman Kalkandelen, the CEO of Templeton Türkiye, said: “Through TTF II, our aim is to support Türkiye’s mid-market by backing companies poised to become national champions and regional leaders. We strongly believe in the dynamics and long-term prospects of the Turkish economy, which is supported by a large domestic market, value-added manufacturing strength and a rapidly evolving technology ecosystem. With this fund, we are reaffirming our commitment to supporting the next generation of Turkish businesses and contributing to sustainable economic growth in the country. We will also focus on family-owned businesses, supporting their institutionalisation and preparing them for successful exits, especially through IPOs.”

Fundraising conditions in Türkiye have been exceptionally challenging in recent years, and the EBRD’s investment has played a critical role in helping TTF II to achieve its first close.

This project is expected to contribute to the resilience of Türkiye’s financial markets by supporting the use of private equity as an alternative funding source. It will also further the competitiveness of mid‑cap companies by providing strategic capital and operational value‑creation expertise.

Templeton Türkiye’s investment approach incorporates sustainable growth principles and environmental, social and governance (ESG) considerations across its portfolio. Some of TTF II’s capital will be channelled into green financing, while applying a gender-focused approach to support more inclusive outcomes.

The EBRD is one of Türkiye’s key institutional investors, with more than €23 billion committed in the country since 2009, largely in the private sector. The Bank invested a record €2.7 billion in Türkiye in 2025, making it the Bank’s largest country of operation once again in terms of the annual volume of investment.