Create Equity Funds in Turkey

Turkey has very flexible regulations related to the establishment of investment funds. Moreover, all the laws provide for the establishment of various types of funds destined to both professional and non-professional investors. During the last few years, equity funds have started to take over the investments market in Turkey. According to statistics, there were around 20 private equity funds in 2015 in Turkey.

Our Turkish company formation consultants can offer more information on the legislation known as communiquees related to equity funds.

What are Turkish equity funds?

Equity funds are mutual funds which are allowed to invest money gathered from the public in different assets and financial instruments, but an equity fund can also invest in the shares of companies. Most of the Turkish equity funds are set up by private investors, which is why they are referred to as private equity funds. Considering they are allowed to invest in companies, most equity funds inject the money into private and public companies in Turkey.

How to establish an equity fund in Turkey

Investors can set up two types of equity funds in Turkey:

• -          type A funds which are required to invest at least 25% of the assets in the shares or equity issued by local companies;
• -          type B funds which don’t have the 25% restriction.

The most employed type of structure used to set up an equity fund in Turkey is the investment company which can have a fixed or a variable capital. Our company registration agents in Turkey can assist foreign investors with the incorporation process of the company.

If you have a company and you want to be up to date with all the procedures and formalities, we recommend you collaborate with our accountants in Turkey. They have experience in various areas of accounting and can offer you payroll services, bookkeeping, audits, tax registration and returns, debt monitoring, and support for the preparation of annual financial statements. Moreover, those interested in other services can benefit from risk assessment and evaluation, or specialized consulting for investors.

Managing equity funds in Turkey

Turkish equity funds must be administered by portfolio manager or intermediary companies which are designed to manage investment funds. The manager of the fund must comply with the internal regulations of the fund which must first receive approval from the Capital Markets Board in the country. An important advantage of equity funds in Turkey is that they offer long-term returns to the investors.

For more information on the advantages of opening an equity fund in Turkey, you can contact our local representatives. You can also rely on our company incorporation agents in Turkey if you want to set up other types of investment funds.