Abraaj Group secures minority stake in Netlog

The GP confirmed that capital was deployed via its Abraaj Turkey Fund. The transaction details were not disclosed. Founders Sahap and Gokalp Cak will retain a majority stake and continue to manage the company.

Abraaj intends to further consolidate Netlog in the market and expand the logistics firm internationally. The GP evaluated the logistics firm for 18 months before the sale, developing a proprietary relationship with the founders.

The deal marks the third acquisition for the fund. It also invested in online marketplace Hepsiburada in February 2015 and commercial bank Fibabanka in June 2016. According to Abraaj partner Selçuk Yorgancıoğlu, the GP initially intended to invest in 6-10 companies with equity tickets ranging between $30-75m.

One year on from closing, the fund’s strategy remains broadly unchanged, however the GP plans to invest in up to eight companies, narrowing its range from a previous 10 potential companies. Abraaj expects to deploy the fund’s remaining capital in the next few months, managing director Omar Syed told unquote". The GP is looking at opportunities in retail, healthcare, and the food and beverage sectors.

The private equity vehicle is the GP's first fund focused exclusively on Turkey and was launched in September 2014. According to a statement, the Abraaj Group raised a total of $486m with a further $40m committed for co-investment. A final close was held in July last year on $526m, exceeding the initial $500m target.

Company
Founded in 2003, Netlog offers supply chain services such as warehousing and trucking, as well as air and sea freight forwarding. It operates 65 warehouses and 3,200 transport vehicles.

People
Abraaj Group – Omar Syed (managing director).

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• Topics
• Expansion
• CEE
• Support services
• Abraaj Capital
• Turkey
• Minority investing