European Bank for Reconstruction and Development (EBRD) has committed US$ 40 million (€34.5 million) to the Templeton Türkiye Fund II (TTF II) to support equity investments in mid-cap companies across Türkiye. This investment will help strengthen mid-sized businesses that show strong growth potential, solid business fundamentals, and scalable operating models.

TTF II is targeting total commitments of US$ 300 million (€258.8 million). The fund will invest across various sectors and aims to boost the competitiveness, expansion, and long-term development of mid-cap companies in the country.

Templeton Türkiye, an existing EBRD client, operates as an independent team within Franklin Templeton. Franklin Templeton manages over US$ 1.6 trillion (€1.38 trillion) in assets and employs more than 9,000 people worldwide. The group has been active in Türkiye since the late 1990s, demonstrating deep experience and a longstanding commitment to the local market. Templeton Türkiye also has a strong history of creating value and achieving successful exits in its portfolio.

Elisabetta Falcetti, the EBRD’s Managing Director for Türkiye and the Caucasus, said the partnership builds on a well-established relationship. She emphasized that the investment shows confidence in Templeton Türkiye’s ability to create long-term value and reflects the EBRD’s support for private equity in a challenging fundraising environment. She also noted that the fund will help dynamic Turkish companies grow sustainably, strengthen their competitiveness, and follow responsible investment practices.

Erman Kalkandelen, CEO of Templeton Türkiye, said that TTF II aims to support the country’s mid-market by backing companies with the potential to become national champions and regional leaders. He highlighted Türkiye’s strong economic foundations, including its large domestic market, competitive manufacturing base, and rapidly advancing technology ecosystem.

According to him, the fund will also focus on helping family-owned businesses professionalize and prepare for successful exits, particularly through IPOs. In recent years, fundraising conditions in Türkiye have been especially difficult, making the EBRD’s participation crucial in enabling TTF II to reach its first close. The project is expected to strengthen the resilience of the country’s financial markets by positioning private equity as an important alternative source of funding.

The fund’s strategy integrates sustainable growth principles and applies environmental, social, and governance (ESG) standards across its investments. A portion of TTF II’s capital will support green finance initiatives, while a gender-focused approach will be used to encourage more inclusive outcomes.

The EBRD remains one of Türkiye’s most significant institutional investors. Since 2009, it has committed more than €23 billion in the country, mainly in the private sector. In 2025 alone, the Bank invested a record €2.7 billion in Türkiye, making it the EBRD’s largest country of operation once again in terms of annual investment volume.