Venture Capital Investment Trusts

According to the Capital Market Board’s Series III, Communique number 48.3, Venture Capital Investment Trusts are companies set up with registered capital and that invest in venture capital investments based on their issued capital.

  • 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 with consultancy services.
  • For the purpose of diversifying their portfolios, they can invest in capital and money market instruments in the secondary 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 form partnerships with consultancy companies established abroad or locally 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.