Advent to close Turkey office

Although Advent's closing of its Istanbul office, which the investor opened in 2010, does not mean the GP will turn its back on Turkey, it is seen as a signal of doubt among investors about the once promising market.

A spokesperson for Advent commented: "Advent seeks to dynamically allocate capital in an effort to generate attractive investment returns. This mandate requires us to evaluate the deployment of our resources so we are best positioned to source attractive investment opportunities and achieve meaningful operating improvements during our ownership."

Turkey's popularity rose sharply among private equity houses following the $2.1bn sale of Turkish spirits group Mey Icki in 2011. Since then, large international players like Carlyle and TPG have flocked to Turkey, making it the most promising market in the CEE region.

It is now believed that high prices driven up by intense competition is one of the driving factors behind investors having second thoughts about the local market.

However, Advent's spokesperson stressed that the closing, which followed a strategic review, was not the result of a loss of confidence in the market: "The country continues to have great potential, and we wish to continue to source attractive investments there. However, we prefer to cover the market through our Europe-wide sector-focused approach rather than with a dedicated office."

It is speculated that Advent will lead its Turkey activity predominantly from its Frankfurt office. 

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• Topics
• CEE
• Turkey
• Advent International