Venture Capital Investment Trust

The CMB defines Venture Capital Investment Trusts as a form of collective investment institutions, directing issued capital toward venture capital investments which are defined as long-term fund transfers, by investing in capital market instruments issued in primary markets by the entrepreneur companies already established or to be established, with the aim of obtaining capital or interest gains

What is the scope of field of activity of venture capital investment partnerships.

  • They are allowed to invest in venture companies under the provisions indicated in the Communiqué of the CMB.

  • They can participate in the management of venture companies and provide them consultancy services.

  • For the purpose of diversifying their portfolios, they can invest in capital market instruments and money market instruments which are trading on the market.

  • They can incur debt provided that the debt incurred does not exceed half their equity for periods less than a year and twice their equity size for periods longer than one year.

  • They can invest in venture capital funds which have ben established abroad for the purpose of investing in venture companies established in Turkey. The risk sourced from this investment should be limited with the principal amount directed to the investment.

  • They can become partners with consultancy companies established abroad so as to provide consultancy service for venture capital activities in Turkey.

  • They can establish partnerships with portfolio management companies established within the country and with those established abroad but whose field of activity is limited by only the venture companies established within the country.

You can reach CMB Venture Capital legislation here.