YFM Equity Partners has launched its new YFM Equity Partners 2016 Fund (YFMEP 2016), which will provide investors with the opportunity to participate in YFM’s future private equity investments which no longer qualify for VCT investment.
YFM has already secured GBP22 million from existing pension funds and new family office backers in the last three months and following this early success are now focussing on the next stage of fundraising. The team is looking to raise an additional GBP10-15m of private equity capital to be invested over YFMEP 2016’s two-year investment period. YFMEP 2016 complements YFM’s established VCT funds, increasing the firm’s combined investment capacity to GBP100m.
Following recent changes to VCT legislation, VCTs can no longer deploy investment in the private equity buyout market. YFMEP 2016 has been created to address the gap this has left in the market, capitalising on YFM’s successful long-term track record of SME investment and allowing both retail and institutional investors continued access to later stage smaller private equity opportunities.
YFMEP 2016 aims to invest across a range of established, growing profitable businesses. Investors will benefit from a shortened cash-drag as fees will only be applied upon drawdown of their capital stake.
David Hall, Managing Director of YFM, says: “Changing UK legislation is likely to reduce the pool of private equity investment opportunities eligible for access through VCTs, thereby creating a potential funding gap for growing SMEs. With YFM’s strong track record of supporting small, ambitious UK businesses looking for private equity investment, we are well-placed to address this shift in the market dynamics and are proud to have successfully launched YFMEP 2016.
“Having already secured these cornerstone commitments, we are looking forward to the next phase of fundraising and providing both our existing and new investors with an attractive private equity alternative alongside our traditional VCT offerings. With our established investment team I am confident YFMEP 2016 will deliver strong returns.”
