The principles regarding the establishment and activities of these funds were regulated in detail with the ‘Communiqué on Principles Regarding Venture Capital Investment Funds’ published by the Capital Markets Board (CMB) in 2014.

It may be established by portfolio management companies authorized by the Capital Markets Board.

There are two types of funds: "fixed-term" and "open-ended". Fixed-term funds are liquidated at the end of a specified period. Open-ended funds are perpetual; however, they may be terminated upon the joint request of investors.

Only qualified investors may invest in the fund.

Individuals and legal entities that hold Turkish and/or foreign currency and capital market instruments amounting to at least TRY 1 million meet these criteria.

The fund’s investments are managed by an “Investment Committee”, and each fund has its own Investment Committee.

According to the Communiqué, the investment committee must consist of at least three members: a board member experienced in venture capital, the general manager, and personnel with at least five years of experience in the venture capital sector.

This varies depending on the fund’s strategy. A specific limit may be set, or funds may be established without any restriction on the investment amount. Information regarding the investment amount is provided in the issuance document.

Investments may be made in all companies established, or to be established, as joint-stock companies or limited liability companies. The fundamental principle is that these companies are developed or have development potential.

At least 80% of the total fund portfolio must consist of venture capital investments. A maximum of 20% of the total fund portfolio may be allocated to participation-based money and capital market instruments.

Before the fund is issued, the founder makes a cash or in-kind resource commitment to reach the total amount within one year. According to the Communiqué, a VCIF must fulfill a resource commitment of at least TRY 75,000,000 within one year from the first sale of participation units.

The fund may distribute profit shares to unitholders within the framework of the provisions set out in the issuance document and the fund issuance agreement.

At least 80% of the total fund value must consist of venture capital investments.

The value of the assets in the fund portfolio is determined by valuation companies licensed by the CMB.

Each fund has its own investor admission periods. While some VCIFs accept investors until a certain period, there are also funds that accept investors throughout the fund term. Investors may purchase units during the entry periods specified in the issuance document and the fund issuance agreement.

Investors may exit the fund during the exit periods specified in the issuance document and the fund issuance agreement. However, an investor may exit the fund at any time by transferring their participation units to a third party.

Yes. Investors may exit the fund at any time by transferring their participation units to a third party.

They operate under CMB supervision and in accordance with applicable legal regulations. Funds are reliable and transparent investment instruments.

Independent audit, risk management, and inspection are among the main units that form the fund’s audit mechanism.

The fund participation units held by investors are monitored by the Central Securities Depository of Türkiye. The fund’s assets are held by licensed custody service providers (banks) in accordance with CMB regulations.

The fund’s assets are held by custodian institutions, and transactions to be carried out at the land registry on behalf of the fund are conducted under the supervision of the custodian institution (bank). In addition, expenditures from the fund are made with the approval of the custodian institution.

Portfolio management companies may not hold client assets under their own custody or in their own accounts at other institutions. These transactions must be carried out by portfolio custody institutions licensed by the CMB and contracted by the portfolio management company (banks that meet the conditions set out in the Communiqué). Institutions providing this service are referred to as custodian institutions.

The fund assets are separate from the assets of the portfolio management company and the custodian institution. Even if the portfolio management company or the custodian institution goes bankrupt, or their management and supervision are transferred to public authorities, the fund assets cannot be seized, cannot be subject to injunctions, and cannot be included in the bankruptcy estate.