Mediterra Capital Partners III LP (FMO-63082)

Countries
  • Turkiye
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 18, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Mediterra Capital Partners III LP
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 21.48 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 20
Converted using 2024-06-18 exchange rate.
Project Cost (USD)
$ 177.19 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 165
Converted using 2024-06-18 exchange rate.
Primary Source

Original disclosure @ FMO website

Updated in EWS Sep 12, 2024

Disclosed by Bank Jan 24, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, Mediterra Capital Partners III LP will pursue the same investment strategy as its predecessors, taking mostly majority stakes in high-growth companies in Turkey's lower mid-market. The Fund will invest in businesses across three themes: technology driven (B2B), consumer driven (B2C) and export driven (B2E) firms. The funding objective is to support the Fund in reaching its target size of EUR 165mln.

FMO is supporting a well-established and experienced fund manager in Turkey. The Fund will contribute to enabling access to equity financing, especially in the lower mid-market. Beyond the Istanbul area, the Fund also focuses on the wider Anatolia region, which is relatively underserved. By participating in the Fund's first close, FMO will send a positive signal to other potential Limited Partners. FMO will thus play a catalysing role in helping the Fund attract other investors (DFIs and private investors) and reach its target size and objectives.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

MCP III is categorised as a B+ fund. The risk categorisation is based on their current pipeline, which is expected to include around 4-5 B+ opportunities following a review and further clarifications from the Fund Manager. Higher risk opportunities lie in the sectors of manufacturing with potentially hazardous materials, agriculture and energy. Meanwhile, other opportunities have the ambition to construct new production facilities. These investments trigger risks related to IFC Performance Standards (PS) 1-4, with in some cases key risks in the supply chain. Although unlikely given information at this stage, PS 5 and 6 risks due to land acquisition and land use change could be present. PS 7 and 8 are currently not anticipated to be triggered.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Total FMO financing: EUR 20.00 MLN
Target size: EUR 165 MLN
Funding: FMO NV

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Mediterra Capital Partners III LP (the “Fund”, “MCP III”) is a Turkey-focused private equity fund and the third fund managed by Mediterra Capital Partners (the “Fund Manager”, “Mediterra”), an established private equity firm investing in Turkey since 2011. FMO has an existing relationship with Mediterra, having invested in both predecessor funds established to date, Mediterra Capital Partners I LP (“MCP I”) and Mediterra Capital Partners II LP (“MCP II”). FMO invested EUR 20mln at MCP III’s first close.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Mediterra Capital Parent Company -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

Website customer/investment: https://www.mediterracapital.com/

ACCESS TO INFORMATION

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

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How it works