Great Circle Fund Invests in Balnak Logistics Group
22 Oct 2007
Moscow, October 22, 2007 – Alfa Capital Partners announces The Great Circle Fund’s significant investment in Balnak Logistics Group (“Balnak”), one of the leading companies in the Turkish third-party logistics (3PL) sector. The Great Circle Fund LP is a private equity fund investing in companies in the transportation
infrastructure and logistics sectors in Russia, Ukraine, Eastern Europe and the former Soviet Union. The Fund is backed by the United States Overseas Private Investment Corporation (“OPIC”). Alfa Capital Partners (“ACP”) is the Regional Manager of the Fund. Since its founding in 1986 as a freight forwarding company, Balnak has grown to become on the leading Turkish logistics companies providing a broad range of transportation, forwarding and contract logistics services to both Turkish and international clients. The Great Circle Fund’s investment will serve as the cornerstone of a major expansion of Balnak’s business.
“With Great Circle, we will double the size of our company, servicing existing and new customers with a full ‘one stop service’,” said Lütfi Aygüler, founder and Chairman of Balnak. “We will make substantial investments in additional warehouse space in Turkey, as well as in our modern truck fleet for international and domestic
transportation. We will expand our network of offices in and outside Turkey, and will also consider acquisitions in the market,” added Mr. Aygüler.
Richard Sobel, CEO of Alfa Capital Partners, commented: “The Great Circle Fund’s investment in Balnak further confirms our commitment to the transport infrastructure sector. Well managed logistics companies such as Balnak, with an impressive client roster and commitment to customer satisfaction, are ideally placed to do well in an environment of increasing retail sales, developing infrastructure and increasing outsourcing of logistics services. We look forward to working with Balnak towards the realization of their potential”.
“The logistics market in Turkey is growing quickly in both size and sophistication, and we believe Balnak can be the preeminent company in the sector,” said Hew Crooks, a Partner with Great Circle Capital. “Balnak’s team has rightfully earned a reputation for excellence, and we are excited to support them as they implement their aggressive growth plan.”
“We are delighted to have Great Circle Capital as a partner and investor,” declared Mr. Aygüler. “They understand our business, and we have already developed a strong and positive relationship that will carry us forward as we pursue our expansion.”
About The Great Circle Fund LP
The Great Circle Fund LP is a US $180 million emerging markets private equity fund specializing in the transportation, logistics and infrastructure sectors in the emerging markets. The primary geographic focus for the Fund is the countries of the former Soviet Union, Southeast Europe and Turkey. The Fund is sponsored by the United States Overseas Private Investment Corporation and managed by Great Circle Capital LLC, based in Stamford, Connecticut, USA. Moscow-based Alfa Capital Partners is the Regional Manager of the Fund. Probel Capital Management, based in Brussels and having an office in Turkey, is an Investment Advisor to the Investment Manager of the Fund. Great Circle Capital LLC and affiliates based in Stamford, Connecticut act as the General Partner and Investment Manager of the Fund. Please visit our website: http://www.greatcirclecapital.com/
About Balnak Logistics Group
Balnak Logistics Group is a full service 3PL company providing freight forwarding (land, air, sea, rail),
warehouse operations, international and domestic transportation and distribution, customs clearance
and value-added services. The customer portfolio includes well-known Turkish as well as
multinational companies in sectors such as textile, ready-to-wear, electronics, automotive, FMCG,
retail and industrial equipment. The company has revenue of about US $80 million and employs over 450 employees in its offices in Turkey, Egypt and Uzbekistan. With over 50,000 m2 of warehouse
space under operation and a fleet of over 100 new trucks, Balnak is one of the few companies in
Turkey that controls all aspects of the 3PL business, allowing it to offer a full package of logistics
services. Through a network of partnerships and agency agreements, Balnak provides worldwide
coverage for all of its logistics and freight forwarding operations.
Please visit our website: http://www.balnak.com.tr/
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