During a turbulent year for the Turkish financial markets and economy, the 1.2% increase in NAV per share reported by Is Private Equity (ISGSY), supported by good growth in real terms by investee companies, is a very positive outcome. With some calm returning to Turkish markets, a further moderation in inflation and interest rates would be positive and a pick-up in M&A activity may provide opportunities for the capital recycling that ISGSY targets.
The overall valuation of Is Private Equity’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 pi...
Is Private Equity (ISGSY) makes direct private equity investments in mid-sized Turkish companies with the aim of providing capital gains and attractive dividends. 2016 was a year of considerable uncertainty in Turkey, creating challenging market conditions for ISGSY’s investee companies and for the wider Turkish economy. Despite this, valuations have remained resilient, with a like-for-like fall of 2.5% versus a reduction of c 4% in 2015, which was arguably a less turbulent year. Including a fur...
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