BAKU, Azerbaijan, March 22. The European Bank for Reconstruction and Development (EBRD) has committed $40 million (34.5 million euros) to the Templeton Türkiye Fund II (TTF II) to finance equity investments in mid-sized companies in Türkiye, Trend reports, citing the EBRD.
"The fund plans to raise a total of $300 million (258.8 million euros) and will invest across various sectors of the economy, focusing on companies with high growth potential, strong business and technological metrics, and scalable models. The partnership aims to support the expansion, competitiveness, and long-term development of mid-market companies.
Templeton Türkiye is already an EBRD client with a proven track record of portfolio value creation and successful exits. The fund operates as an independent team within Franklin Templeton, a global asset manager with over $1.6 trillion (1.38 trillion euros) under management and more than 9,000 employees worldwide. "Franklin Templeton has been investing in Türkiye since the late 1990s, demonstrating a long-term commitment and significant experience in the market," the bank said.
Meanwhile, it is noted that fundraising conditions in Türkiye have been exceptionally challenging in recent years, and the EBRD’s investment played a key role in TTF II’s first closing.
"The project is expected to contribute to the stability of Türkiye’s financial markets by supporting the use of private capital as an alternative source of financing. Additionally, it will enhance the competitiveness of mid-market companies by providing strategic capital and expert support in value creation," the EBRD reports.
Furthermore, it is emphasized that Templeton Türkiye’s investment approach incorporates principles of sustainable growth and takes environmental, social, and governance (ESG) aspects into account within the portfolio.
According to the information, part of TTF II’s capital will be directed toward "green" financing, while a gender-focused approach will be applied to ensure more inclusive outcomes.
The EBRD is one of the key institutional investors in Türkiye, having invested more than 23 billion euros in the country since 2009, primarily in the private sector. In 2025, the bank invested a record 2.7 billion euros in Türkiye, once again making it the country with the largest annual investment volume.