Getir backer Re-Pie launches EUR 70m VC fund

Re-Pie Ventures 1 (RV1) was launched in April 2022 and aims to see the first close by the end of the year, according to Ergin.

The fund will have a hard cap of EUR 100m. The soft marketing for the diversified Netherlands-domiciled vehicle will begin by May, Ergin said.

The process is managed by JTC Institutional Services, while Van Campen Liem is providing legal advice.

Re-Pie is one of the largest independent asset managers in Turkey with assets under management of TRY 9bn (c. EUR 550m). It closed 13 deals in 2021, Ergin said.

Through 10 other VC funds, it has made investments in fintech, healthtech, micro mobility, circular economy and gaming startups, he added.

Ergin, Emre Camlibel and Caner Bingol, who are also the co-founders of Re-Pie Asset Management, are the general partners in the new fund. Violetta Vrublevskaya is also an investment committee member alongside them. Three more people will be added to the team in 2022, Ergin said.

Investors
The minimum subscription for RV1 will be EUR 150,000 and the GP commitment will be between 3.5% and 5%.

The management fee will be 2%, with carry set at 20%. The hurdle is based on harmonised indices of consumer prices (HICP), Ergin noted.

The GP is aiming to raise 40% of the fund frominternational financial institutions, 30% from funds-of-funds, 20% from insurance companies and pension funds, and 5% from high net worth individuals. The balance of 5% will be made by the GP, Ergin said.

According to Ergin, 90% of the fund is expected to come from new investors and the balance from older ones.

Investments
The new vehicle will deploy 75% of its capital in Turkey, with the remainder to be deployed across Eastern Europe, particularly in Romania, Greece, Bulgaria, Estonia, Lithuania and Latvia.

The fund’s investment period will be 10 years, Ergin said, adding that it will have two years for portfolio construction, an expected holding period of four years per company, and two more years for exit.

The fund will target startups and scaleups that are ready for the next phase of their growth, having already received seed and early-stage financing from business angels and VCs. It particularly seeks established companies that are pursuing substantial scaling or international expansion, whose innovative products address global markets, Ergin said.

The fund expects to deploy 70% of its capital via funding rounds at Series A stage or later, he added.

The fund will deploy equity tickets of EUR 2.5m-7.5m, with an average ticket of EUR 5m. The fund will invest in situations in which the GP sees a striking equity finance gap in Turkey and a significant return opportunity that it wants to leverage.

RV1 aims to lead the investment rounds in which it participates, but will co-invest with others, Ergin noted. The firm’s parent Re-Pie will co-invest on a one-to-one basis with its own fund through other vehicles. The total investment size available from both funds will be around EUR 10m with a potential range of EUR 5m-15m, he added. The GP will invest for stakes of up to 15% in the targets.

Mainly fintech, games, e-commerce, healthtech, edutech and logitech will be on the radar of the new fund. It plans to make six to seven investments every year.

There are at least five potential investments in the pipeline in the next 12 months, he added.

Re-Pie partially exited its investment in the Turkish fast grocery delivery unicorn Getir earlier this year, as reported.

There are 35 companies in Re-Pie’s existing portfolio and it could exit four of them, this year, Ergin said. It also expects to make 10 more investments at Series A level and another 10 more at seed stage, he added.

Significant portfolio companies other than Getir include Switzerland-based decentralised credit scoring and microcredit platform Colendi, Turkey-based telco and internet service provider (ISP) Turk.net, Turkey-based e-scooter startup Binbin, Turkish refurbished electronic goods market EasyCep, and Ikas, a Turkey-based e-commerce platform.

People
Re-Pie Asset Management Mehmet Ali Ergin (general partner).

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