Four smaller funds founded under Turkish Wealth Fund to focus on financial stability, SMEs, licenses and mining
Neşe Karanfil - ANKARAFour sub-funds have been established under Turkey’s new sovereign wealth fund (TVF) in order to concentrate on financial stability, small and medium sized enterprises (SMEs), licenses and the mining sector, according to top representatives from the TVF.
Turkey transferred government stakes worth billions of dollars in Turkish Airlines, major banks and fixed-line operator Türk Telekom to the wealth fund, in order to help finance big-ticket infrastructure projects.
The fund was set up with an initial capital of just 50 million liras last August, but the government is aiming for it to manage $200 billion in assets as soon as possible.
The TVF’s top management decided to set up four sub-funds in a meeting back in April, according to sources close to the matter.
The new funds were founded under the monitoring of Ziraat Bank and each has its own investment committee and management board.
While TVF President Mehmet Bostan takes part in the investment committees of all sub-funds, Yiğit Bulut, a senior adviser to Turkish President Recep Tayyip Erdoğan, will be on the investment committees of three of the four sub-funds. Banker Mehmet Gündüz will head all the sub-funds.