Mediterra Capital marks inaugural exit from second fund with Paycore sale

Erdinc Ergenc
11 August 2023

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Turkish private equity firm Mediterra Capital Partners has sold payment services provider Paycore to fintech platform Param in a deal that was announced last week, marking the first exit from its EUR 166m, 2016-vintage second fund.

Mediterra acquired Paycore in 2021 and held the company for less than three years. The sale of Paycore follows four other tech exits from the GP's first fund, a 2012 vintage that closed on EUR 164m.

The firm has made seven exits in total since its inception.

It sold fleet telemathics firm Mobiliz to GPS Bulgaria in March 2020. Mikro Odeme, a mobile payment processing company was sold to Germany-based Wirecard in 2014; in 2016, it exited Logo in a re-IPO, and Arzum in an IPO in October 2020, according to previous reports.

Its flour manufacturer Soke Un was sold in January 2022 and its insurance brokerage firm ACP was acquired by Howden in April 2018.

Founded in 2001 and formerly known as Cardtek, PayCore provides payment systems infrastructure to financial institutions and payment service providers. It is headquartered in Istanbul.

Previous funds and exits

Across its EUR 164m Mediterra Capital I and EUR 166m Mediterra Capital II funds, the GP has so far invested in a total of 16 companies and has nine left in its portfolio.

The debut fund has only two companies in its portfolio and they are the aquaculture and seafood products maker Lucky Fish; and Tavuk Dunyasi, a casual chicken restaurant chain. Mediterra I was fully deployed as of 2019 and its investment period expired in 2016, as per a previous report.

Mediterra Capital Partners II was announced in September 2015 with a target size of EUR 300m and held a final close in March 2018 on EUR 166m. The fund is also fully deployed.

Mediterra invests between EUR 15m-EUR 60m in Turkey-based companies, operating in the consumer, business services, export manufacturing, capital goods and information technology sectors with enterprise values ranging from EUR 25m-EUR 200m.

There are seven companies left in the second fund: software vendor Glasshouse; elevator control components manufacturer Arkel; restaurant and pizza chains Pidem and Terra Pizza; Durumle, a wrap restaurant chain, Zero Density a virtual graphics and software provider for broadcasting, live events, and e-sports sectors; and Elba Bant, a producer of protective films and adhesive tapes.