Brief Guide 

Venture capital investment trusts are a form of collective investment institutions, directing issued capital toward venture capital investments which are defined as long-term fund transfers, through investing in capital market instruments issued in primary markets by the entrepreneur companies already established or to be established, with the aim of obtaining capital or interest gains


As in investment trusts, they are established in the form of joint-stock corporations and they have a legal personality. Their capital is registered and they issue shares. Their shares have to be issued in return for cash and quoted, traded and priced at a stock exchange.


As in investment trusts, There is no restriction on the founders accept for certifying that they have not been subjected to any legal prosecution due to bankruptcy or another disgraceful offence. Legal persons as well as real persons can be founders of a VCIT.


Venture capital investment trusts may;
·       Purchase stocks and borrowing instruments issued by the entrepreneur
·       Company.
·       Issue borrowing instruments.
·       Participate in the active management of the entrepreneur company.
·       Invest in other venture capital investment trusts.


Some of the portfolio restrictions for VCITs are about;
·       Investing in the companies in which major shareholders or directors of the VCIT has a share of at least 10%.
·       Investing in securities of non-entrepreneur companies in the second market.
·       Investing in other VCITs.


As in the case of investment trusts, investors buy shares of a VCIT in the stock exchange. In return they are paid dividends at the end of the years. They may also sell their shares in the exchange and receive capital gains anytime they want.


After being approved by the CMB the article of incorporation of the VCIT is announced in the Turkish Commercial Registry Journal. As well as that; they have to prepare prospectus in the case of issuance and public offering of the shares. Besides, important developments about the VCITs and their monthly portfolio tables including their assets and net asset value per share are announced to the investors in the bulletin of the stock exchange. Finally their annual and semiannual financial statements have to be audited by a certified external auditor.


The disclosure liabilities, portfolio restrictions and the listing requirement for the VCITs ensure the protection of the investors.


VCITs are exempt from the Corporation Tax.