Edison Investment Research - Is Girisim Sermayesi Yatirim Ortakligi A.S. (ISGSY) Is Private Equity - Valuation yet to reflect improving conditions

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Edison Investment Research

Martyn King

Is Private Equity - Valuation yet to reflect improving conditions

The overall valuation of Is Private Equityâ€™s (ISGSY) private equity investments remained resilient in 2017, with gross asset exposure to these investments increasing (and liquid assets reduced) as ISGSY invested further, for larger stakes in existing assets. With economic recovery taking hold, investee companies saw total revenue growth of c 35% in 2017, and the increased investment may prove to be well timed, especially if inflation and interest rates decline as the Central Bank expects. A pick-up in M&A activity may also provide additional opportunity for capital recycling from mature assets into new opportunities. The significant 52% discount to NAV provides scope for a re-rating.

16/03/2018 13 EN

Underlying

Is Girisim Sermayesi Yatirim Ortakligi A.S.

Is Girisim Sermayesi Yatirim Ort. A.S.. Is Girisim Sermayesi Yatirim Ortakligi AS is a Turkey-based venture capital company. The Company invests in, and provides financing to emerging small to medium-sized enterprises. Its investment portfolio comprises Aras Kargo, engaged in the parcel delivery; Havas, a ground handling services company; Frik Ilac, active within the pharmaceuticals sector; Turkmed, offering dialysis services, Ortopro, active within the orthopedic surgery sector; ODE, engaged in the insulation and construction materials sector; Beyaz Filo Kiralama, engaged in the fleet rental; Tuyap, offering fair and exhibition services; Step - Stepevi, a carpet and home accessories retailer; Nevotek, a technology company; Cinemars - Mars the cinema professionals, responsible for the operation of movie theaters; IDT, a voice automation and technology company, and Probil, a system integrator company.

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TREIGSY00019 Istanbul Stock Exchange Turkey

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Martyn King

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Is Private Equity - Valuation yet to reflect improving conditions

Is Private Equity - Continuing to weather the storm

Weathering a storm

Metro Bank - Profitability achieved and targets reiterated

Pan African Resources - Tennant Creek acquisition

Datatec - Operational focus drives H125 profit growth

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