Turkven’s Türkiye-focused private equity fund TPEF V is targeting $400 million in commitments, as the firm looks to back mid-market companies exposed to digital growth and hard-currency revenues.
Dutch development bank FMO is considering a commitment to the fund at first close, according to disclosure documents. The size of FMO’s proposed investment was not disclosed.
TPEF V will continue the strategy of Turkven’s predecessor fund, investing in high-growth companies in Türkiye’s mid-market.
The fund will focus on businesses benefiting from digital adoption, as well as companies with hard-currency revenues, a key consideration in a market exposed to currency volatility and inflationary pressures.
For development finance institutions, the transaction reflects a broader strategy of using private equity funds to channel long-term risk capital into emerging-market companies that may struggle to access institutional funding directly.
FMO said its proposed commitment is aimed at supporting private-sector-led growth and job creation by expanding the availability of equity capital for mid-sized companies in Türkiye.
The investment will qualify under FMO’s Reducing Inequalities label, which covers transactions intended to improve access to capital and economic opportunity in underserved markets.
The Dutch DFI has had a relationship with Turkven since 2002 and has invested in three of its predecessor funds.
Its participation at first close is also intended to send a positive signal to other potential limited partners and help the fund attract additional institutional and commercial capital.
The first-close commitment is significant because DFI participation can help emerging-market fund managers raise capital from other investors, particularly during periods when commercial LP appetite is more selective.
Türkiye’s mid-market remains an important target for private capital investors because of the country’s large domestic market, export base and growing digital economy.
At the same time, macroeconomic volatility has made investor selection more focused, with fund managers prioritising companies that can generate foreign-currency revenues or scale beyond the domestic market.
TPEF V has been classified as Category B+ under FMO’s sustainability framework, reflecting potential environmental and social risks across its underlying investments.
Turkven has existing environmental and social processes based on IFC Performance Standards, according to the disclosure.
FMO said it will support the fund manager in strengthening those systems, managing contextual risks and identifying opportunities for value creation across the portfolio.