Carlyle closes second Turkish deal

The Carlyle Group has done its second deal in Turkey’s burgeoning private equity market, having purchased 40 percent of hospital chain Medical Park.

No financial details were disclosed regarding the all-equity investment, which marks the second deal from Carlyle’s $500 million MENA growth fund closed earlier this year. It is also the second deal Carlyle has done in Turkey; in July 2008, it purchased a 50 percent stake in shipbuilder TVK Shipyard.

While Carlyle had been examining Turkey’s healthcare sector for the last year, the Medical Park deal took only four months to execute, Can Deldag, head of Carlyle’s Turkey team, told PEO. Founding shareholders the Sancak and Usta groups will each retain a 30 percent stake in the company, which will be jointly controlled by all three parties.

Carlyle’s investment will be used to help Medical Park pay down debt, as well as continue its expansion. Since 2005, the company has grown from owning two hospitals in Istanbul to 13 throughout the country.

“The Turkish healthcare services sector shows great promise as patient demand for services has been high and is expected to grow steadily,” Deldag said in a statement.

Giving Turkish companies the growth capital and expertise to become regional players is a key aspect of Carlyle’s approach to the country. Other sectors it may pursue would be those positioned to benefit from the company’s growing middle class, including energy, services and niche manufacturing.

Kohlberg Kravis Roberts, TPG, Bridgepoint and BC Partners are among the other large, established private equity firms that have agreed deals in Turkey.