Gramercy Targets $1 Billion for Private Credit Bets in Turkey

Gramercy, a global emerging markets alternatives investment manager, is targeting $1 billion for private credit investments in Turkey. The firm, founded in 1998, seeks to provide investors with a better approach to emerging markets, delivering attractive risk-adjusted returns supported by a transparent and robust institutional platform. Gramercy offers alternative and long-only strategies across emerging markets asset classes, including multi-asset, private credit, public credit, and special situations.

Gramercy's interest in Turkey's private credit market is driven by the potential for attractive returns, given the strong collateral protection and covenant packages they aim to secure. The firm is focusing on specific sectors and industries in Turkey, such as real estate, energy and natural resources, manufacturing and export-oriented industries, and financial services. These sectors align with the government's efforts to rebalance the economy and promote sustainable growth.

Gramercy's approach to private credit investments in Turkey differs from its strategies in other emerging markets, such as Latin America and Central & Eastern Europe. The firm's strategy in Turkey is characterized by a more cautious and selective approach, focusing on USD-denominated loans, strong collateral protection, and sectors less sensitive to economic cycles. This is due to the economic and political environment, as well as the specific needs of local borrowers in Turkey.

Investing in private credit in Turkey presents several potential risks and challenges, such as economic slowdown, inflation, geopolitical risks, currency volatility, regulatory and political risks, and default risks. Gramercy acknowledges these risks and employs a multi-channel approach to sourcing, maintains a diversified portfolio, structures loans with strong collateral protection, and adheres to a culture of compliance to mitigate these risks.

Gramercy's target of $1 billion for private credit investments in Turkey reflects the firm's confidence in the potential for attractive returns in the Turkish market, despite the challenges and risks. By focusing on specific sectors and industries, Gramercy aims to capitalize on the opportunities presented by the Turkish economy's rebalancing efforts and the firm's expertise in emerging markets.

In conclusion, Gramercy's $1 billion target for private credit investments in Turkey highlights the firm's commitment to the Turkish market and its potential for attractive returns. By focusing on specific sectors and industries, Gramercy aims to mitigate the risks associated with investing in Turkey and capitalize on the opportunities presented by the country's economic rebalancing efforts.