ADQ and Turkey’s wealth fund form new $300m fund to invest in tech start-ups

Abu Dhabi’s holding company ADQ and Turkiye Wealth Fund formed a new $300 million technology fund that will focus on investing in start-ups across Turkey, further deepening the UAE’s investment ties in the country.

Turkiye Technology Fund (ADQ TWF) will invest in companies developing new technologies or improving existing technology across various sectors that include energy and utilities, healthcare and life sciences, food and agriculture, mobility and logistics, financial services, and education, the Abu Dhabi Government Media Office (ADGMO) said in a statement on Thursday.

“Turkiye is an attractive market with substantial opportunities for investing in vital sectors that align with our areas of expertise,” said Mohamed Alsuwaidi, managing director and chief executive of ADQ.

“By providing access to the national and regional champions in our portfolio, we will help to unlock even greater value for these companies and funds with high-growth potential.”

ADQ TWF’s launch comes as the Abu Dhabi holding company sealed various agreements with several Turkish investment entities to boost the development of priority sectors in both the countries last year. ADQ signed partnership pacts with the Turkey Wealth Fund, Turkey Investment Office and CCN Holding, the ADGMO said at that time.

Abu Dhabi and Ankara have been deepening their trade and investment ties following the visit of Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, to Turkey last year. During the visit, the UAE also announced a $10 billion fund to support strategic investments in Turkey, including in energy, health and food.

“This fund marks the first step taken by the TWF as part of its vision to build a broader $1bn technology platform, to become the reference technology fund accelerating technological growth in Turkiye and driving growth in strategic technological sectors critical to Turkiye’s development,” said Arda Ermut, chief executive and board member at TWF.

The move will also enable ADQ to tap into fast growing Turkish start-ups, the statement added.

Turkish start-ups accounted for 30 per cent of all venture capital transactions closed and more than half of all capital deployed into start-ups across the Middle East and North Africa (MENA), Turkey and Pakistan in 2021, ADQ said.

The Turkish venture capital ecosystem reached its highest ever quarterly, half-yearly and yearly level of capital raised by local start-ups in late 2021, it added.

“The Turkiye Technology Fund will create a unique added value for our country with its volume and international direct investment dimension and the multiplier effect it will provide for other technology investments,” Mr Ermut said.

Referred by : https://www.thenationalnews.com/business/economy/2022/03/24/adq-and-turkeys-wealth-fund-form-new-300m-fund-to-invest-in-tech-start-ups/