Canada pension plans launch $200 million fund in Turkey

VANCOUVER, British Columbia, Reuters- Two of Canada's biggest pension funds said on Tuesday they have teamed up to launch what they say is the largest private equity fund in Turkey.

The Canada Pension Plan Investment Board and a unit of the Ontario Teachers' Pension Plan, have each shelled out 75 million euros ($97 million) to set up the fund, which they have called Actera Partners.

Actera will hunt for buyout and growth equity investments in Turkey across a range of industries and will also partner with Turkish companies wanting to expand abroad.

The fund expects to have raised 250 million euros by the middle of the year.

"Turkey is an attractive private equity market, with a large and growing population, a high number of quality mid-market businesses, and a developing economy which is expected to benefit from becoming increasingly harmonized with Europe," said Jim Leech, senior vice-president of Teachers' Private Capital.

Teachers' Private Capital is the private investment arm of the Ontario Teachers' Pension Plan, a C$100 billion ($85 million) fund managing the pensions of 264,000 working and retired teachers in Ontario. It has more than C$13 billion in assets.

The Canada Pension Plan Investment Board is the money manager of the C$103 billion Canada Pension Plan.

Actera Partners will be led by Isak Antika and Murat Cavusoglu, who both have investment banking experience.