The European Bank for Reconstruction and Development has committed $40m to Templeton Türkiye Fund II, supporting the expansion of private equity investment into mid-cap companies.

The fund is targeting $300m in total commitments and will focus on businesses with strong growth potential, scalable models, and robust operational fundamentals.

The investment reinforces private equity’s role in supporting Türkiye’s mid-market segment, particularly at a time when fundraising conditions remain challenging.

Templeton Türkiye, part of Franklin Templeton, brings an established track record of value creation and exit execution in the market, with the new fund aiming to back companies with the potential to scale into national and regional leaders.

“We are delighted to be continuing our partnership with the Templeton Türkiye team. Our investment reflects both our confidence in their proven value-creation capabilities and our commitment to supporting private equity in Türkiye at a time when fundraising is particularly difficult,” said Elisabetta Falcetti, Managing Director for Türkiye and the Caucasus at EBRD.

The capital will support company expansion, operational development, and long-term competitiveness, while also contributing to the development of local equity markets.

“Through TTF II, our aim is to support Türkiye’s mid-market by backing companies poised to become national champions and regional leaders,” said Erman Kalkandelen, CEO of Templeton Türkiye.

The initiative also incorporates ESG considerations and includes elements of green financing, reflecting growing investor focus on sustainable private equity strategies.

The transaction highlights continued institutional support for private equity as a key driver of economic growth and capital formation in emerging markets.

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