He was born Baha-ud-Din Osman and later given the nickname Qara Iluk or Qara Yuluk meaning The Black Leech. According to Byzantine and Aq Qoyunlu sources, he was married to a princess, a daughter of Alexios III of Trebizond and his consort Theodora Kantakouzene.
He was afraid of the intentions of his brothers, Ahmed and Pir Ali, when they joined Kadi Burhan al-Din of Sivas. He eventually killed his opponents and took over their territories in 1398 but retreated from Erzinjan on arrival of the Ottomans under Süleyman Çelebi.