Business world firstly threw master funds opinion into the pot
in 2011. After two years, this attempt currently came into climax
with government support. The structure of this mechanism has
already determined that will provide 500 million TRY capitals to
Small and Medium Sized Enterprises (SMEs).
An undersecretary of Treasury is willing to support foreign
investment funds for the purpose of developing some promising
sectors in Turkey. Nevertheless, some requirements are stipulated
by government, shall be met by potential private equity
Highlights of Master Funds Project
Founder of the investment fund must play a part in a private
equity which generates more than 25 million TRY annual revenue at
least two years.
Portfolio manager of the private equity in point, shall act a
role of any investment decision at least five companies or other
Portfolio manager also must succeed in one exit decision
subject to any investment on behalf of private equity.
The main target of this project is canalizing foreign
investments into technology oriented areas. Moreover, highly value
added investments will be taken into account primarily.
5 principle funds are projected to appear regarding government
A principle fund will be able to invest in up to five private
equities. Therefore, 25-30 private equities are anticipated to
benefit from this master fund.
New Incentive Model: Financial Free Zone in Istanbul
In line with master fund setup in Turkey, new incentives may
reveal regarding corporate tax exemption and land allocation for
necessary investments in appropriate industries. As is known, a new
by law regulated for angel investments in the early 2013. In the
light of these regulations, angel investors' benefit from
corporate tax reduction in case of they meet requirements which was
drawn by Undersecretaries of Treasury. In parallel with these
amendments for angel investments, a new legislation may be expected
for private equities when they actively commence on operations and
new investments under "Master Funds Scheme" as a
financial free zone player. Mobilization of capital towards to
Turkish market is aimed with all these opportunities and
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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