RHEA Investments Buys Istanbul VC Trust

RHEA Investments, an Istanbul-based private investment firm, has agreed to buy the controlling shares of Vakif Risk Sermayesi Yatirim Ortakligi AS (ISE: VKFRS), a venture capital trust with a market cap of approximately $6.5 million.


Istanbul based RHEA Investments, a private investment office and asset management platform with interests in real estate, healthcare, renewable energy and agriculture announced today that it had signed a definite agreement to purchase all of the controlling shares of of Vakif Risk Sermayesi Yatirim Ortakligi A.S. (Vakif Venture Capital Investment Trust), an Istanbul Stock Exhange listed joint stock company (ISE stock code: “VKFRS”). The share sale agreement has been approved by the Boards of Directors of both RHEA and Vakıfbank.

Vakif Venture Capital Investment Trust (“VVCIT”) has been established in June 1996, and listed on Istanbul Stock Exchange in July 2000. VVCIT has been the first venture capital investment trust established in the country and led the formation of regulation on private equity / venture capital investing in the country. VVCIT has a market value of around TL10mn (US$6.5mn) and assets of the company are in fully liquid instruments at this time.

Onur Takmak reflected “As a company aspiring to become a leading regional alternative investment management platform in the EMEA region, RHEA is proud to inherit such prestigious history, and carry the flag to further successes. Going forward, we are aiming to dramatically expand VVCIT’s capital base and provide local and international retail and institutional investors the opportunity to co-invest and access attractive Turkish and Regional investment opportunities together with us.”

RHEA expects the transaction will be closed in the 4th Quarter of 2009 following approval from the Capital Markets Board of Turkey.

About RHEA Investments

RHEA is a private investment office established as an institutional quality and independent asset management platform with interests within and outside Turkey. RHEA platform has been launched by mid-2006, with extensive global investment management experience of its management.

RHEA is under the management of Mr. Onur Takmak who has gained international recognition in global asset management industry in London as a portfolio manager of a global opportunistic investment fund. Currently, Mr. Takmak is also an independent investment committee member of EUR 160mn IVCI Fund (Istanbul Venture Capital Initiative) managed by European Investment Fund (EIF) out of Luxembourg.

RHEA’s management team encompasses senior directors having vast local and international experience in Private Equity and Real Estate Development. Recently, RHEA added the Venture Capital and Private Equity fund management team of Stowbridge Partners and named Mr. Memet M. Yazici as its Head of Asset management.

RHEA has offices and presence in 2 locations in Turkey (Izmir and Istanbul); Dubai, UAE; Bucharest, Romania; London, UK. More information is available at www.rhea.com.tr.