Sunday, October 30, 2011

Private Equity Firms Eye Turkish Department Store Chain YKM

Turkish retail sector continues to attract interest from private equity firms. YKM which is Turkey's first department stores brand from 20 years ago has been struggling to compete and fund its domestic expansion. The firms manages 38 owned stores and 24 franchises in Istanbul and Anatolia. 
 
I hear that Carlyle and Turkven a local PE shop are currently bidding for a stake in Istanbul-based department store chain YKM. They are joined by another Turkish private equity group Is Venture Capital and California-based real estate investor Colony Capital in the sale process, the two of which have partnered for the 63% stake.
Carlyle has teamed up with Turkish private equity investor Esas Holding for YFM, which is currently owned and operated by Turkey’s Agrali and Tan families.

Turkey has seen a wave of private equity interest in recent years, as firms seek to capitalise on the emerging opportunities on offer.
Global private equity firm Cerberus Capital Management recently partnered with Turkish bank Garanti Securities to invest up to $1billion in buy-out deals in the country.
 
However, the deal suggests existing players may be having tough time generating propsects for deals given there appears to be at least 5 financial investors involved with a transaction of a small department chain with 62 stores. YKM has been for sale for at least 3 years and this may not close. However, the next deal for dealmaker may take even longer.

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