Akfen Holding

Industrials | Turkey

Investment: Long
Status: Exited (Q2 2016)

Summary

In February 2015, we announce our engagement in Akfen Holding (“Akfen”), one of Turkey’s largest industrial conglomerates. The company spans infrastructure, project development, operations, and construction. Sectors that depend on capital discipline, long-term contracts, and execution rigor.

Despite the scale of its assets, Akfen’s stock has failed to reflect the company’s potential. Since its IPO in 2010, the shares have underperformed both peers and the broader Turkish market. The market prices Akfen as if its growth pipeline and cash-generating businesses hold little value.

Our thesis is straightforward: Akfen owns strategic infrastructure assets in a country where such assets are scarce and vital, yet it trades as though its capital is misallocated and its operations undisciplined. By enforcing sharper governance and aligning capital priorities with asset strength, we believe the company can be revalued on fundamentals rather than discounted on perception.

The outcome we expect is not cosmetic improvement but a repricing that reflects the true strength and strategic importance of Akfen’s portfolio.

We exited in April 2016, when Akfen was taken private and delisted from the Borsa Istanbul.

(This thesis is archived and reflects our views at the time of publication.)

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