Massive investment needs for energy and infrastructure in the target region:
Large-scale demand for energy and infrastructure investments in the target region due to deferred investments, convergence with developed markets, high growth, and demography.
Increasing investments in renewable energy due to improved awareness on climate change, regulatory requirements, tariff support, and increasingly unstable fossil fuel prices in the long run.
Increasing willingness of Governments to introduce private capital to infrastructure finance through PPPs, concessions, and privatisations. Turkey expected to enter a power deficit period in the medium term; large-scale generation and distribution assets being privatised.
Typically large size of equity requirements in energy and infrastructure projects and relatively limited investment capital available locally.
Lack of capital with sector expertise:
Local investors and developers willing to partner with financial investors that could bring in additional equity, expertise, industry network and help raise debt on a limited-recourse basis for projects or acquisitions.
Growing demand by western strategic investors (which have saturated home markets) to invest in fast-growing emerging markets, which in turn generates attractive exit opportunities for financial investors.
Increasing number of local developers and foreign investors seeking credible and sophisticated third-party advisors or minority investors to help create and structure partnerships.
Limited expertise in the target sectors and shortage of world-class standards of advisory and governance in the target region.
A unique opportunity to place large-scale capital and access stable long-term returns:
Relatively limited local sources of equity and long-term debt.
Rapid accumulation of capital in resource-rich economies seeking stable, long-term investments in the target region for portfolio diversification.
Increasing appetite from financial investors for energy and infrastructure assets which have a low correlation to other asset classes, providing both long-term stable cashflows and early exit opportunities following value build-up.