RePie Portfolio/Camlıbel: Alternative Investment Funds to Surpass 500 Billion Lira Barrier by 2025
Forex - Global markets are entering a new era with the Federal Reserve (FED) having cut interest rates three times since September, starting in 2025. In Turkey, the Central Bank is also expected to implement a rate cut for the first time in 22 months on December 26, with further reductions anticipated in 2025. The declining interest rates are expected to positively impact the investment environment, paving the way for a transition from short-term investments to long-term ones.
Expectations are rising that the growth in the alternative investment fund market, a significant avenue for long-term investments that has continued to grow even in a high-interest environment, will accelerate in 2025 under lower interest rates. In Turkey, alternative investment instruments include venture capital and real estate investment funds (REITs and REIFs). Dr. M. Emre Çamlıbel, Chairman of the Board of RePie Portfolio Management, which holds a leading position in the alternative investment sector with approximately 22% market share in terms of both portfolio size and the number of REITs and REIFs issued, emphasized that the growth of alternative investment funds in Turkey is well above the global average.
Global alternative investment market is heading towards $30 trillion Çamlıbel noted, “In the context of high inflation and a volatile market, investors have balanced their portfolios consisting of stocks, bonds, and precious metals with alternative investment instruments. The global alternative investment market is expected to grow by 5% compared to last year, closing this year at around $23.21 trillion. By 2030, this figure is anticipated to reach $30 trillion. We are witnessing a much faster increase in the alternative investment fund market in Turkey. The Turkish alternative investment fund market is expected to grow by 89% in 2024, reaching 388 billion lira. With the interest rate reduction process, we expect this growth to accelerate further, predicting that by 2025, the market size will surpass the 500 billion lira threshold,” he explained.
According to Çamlıbel, by 2024, the total size of REITs is projected to increase by 86% year-on-year to 240.7 billion lira, while the total size of REIFs is expected to rise by 95% to 148.2 billion lira.
After institutions, individual investors also turn to alternatives Dr. Çamlıbel informed that institutional investors hold about 35% of their portfolios in alternative investment instruments. He added, “Among the institutions investing in alternative investment funds in Turkey, private pension systems are leading. Research shows that a portfolio balanced with alternative investment instruments offers higher returns compared to a traditional portfolio. For this reason, individual investors are increasingly turning to alternative investment funds. The number of qualified investors investing in alternative investment funds increased by 26% in 2024.”
RePie Portfolio’s end-2025 target is 150 billion lira RePie Portfolio, Turkey’s first and largest alternative portfolio management company, has maintained its market leadership since its inception. The company achieved a 45% growth in 2024, bringing its total portfolio size to approximately 82 billion lira. It manages a total of 44 REITs, 36 REIFs, 15 securities investment funds, and 2 pension funds.
In 2024, RePie Portfolio fully acquired Modanisa, an international online fashion and shopping platform, and added Doğan Burda, Turkey’s largest magazine publishing group, to its portfolio. The final investment of the year went to Goldtag, which provides investors with easy and secure access to precious metals and agricultural commodities.
Emphasizing their commitment to increasing investor access to high-potential companies and real estate projects, Çamlıbel stated, “We aim to increase our portfolio, which includes investments in Turkey’s strongest unicorn candidates, to 150 billion lira by the end of 2025.”
New funds on the way Speaking about RePie Portfolio’s 2025 targets, Çamlıbel said, “We are entering a year where pre-IPO investments will be intense. REITs offering pre-IPO investment opportunities will provide investors with priority options. We will enrich the investment opportunities we offer our investors through our funds in every category.”
Çamlıbel reminded that a regulation in 2024 paved the way for establishing project real estate investment funds (Project REIF). He anticipated, “We expect the Project REIF regulation to make significant contributions to both the sector and the economy, increasing access to housing. With our experience from the real sector, we will issue Project REIFs in 2025 to offer new options to our investors.”
He also noted that as planned in January, the ban on short selling in the stock market will be lifted, stating, “We believe that lifting the ban will help arbitrage returns reach the same levels as interest rates. Following this ban’s removal, we will announce our arbitrage fund, which we aim to provide with enhanced returns by utilizing leverage.”
Increasing partnerships with industry giants Drawing on its 10 years of experience and expertise in alternative investment funds, RePie Portfolio aims to expand its corporate portfolio in 2025. Emre Çamlıbel stated, “It has been a year of growth not only in alternative investment funds but also in securities investment funds and private wealth management. Additionally, we have long been collaborating with industry giants. Companies benefitting from RePie Portfolio’s experience and sector expertise are focusing on their strategic goals more efficiently by reducing their workload. We will announce new collaborations in this area in 2025.”
Investment in alternative investment funds has become digital In 2024, digitization marked the Turkish alternative investment fund market. With the launch of the Fonmap mobile application in June, accessing alternative investment funds digitally became possible. With Fonmap, the first and only application in Turkey that is unique in its scope globally, investors can purchase participation shares of funds from portfolio management companies partnered with the application. The digitization of access to REITs and REIFs is increasing individual investor interest in alternative investment funds.