Private equity fund manager YFM Equity Partners has closed its first buy-out fund, YFMEP 2016, at GBP45 million, 50 per cent above its initial target.
Launched last year, the fund is targeted at the gap left by venture capital trusts; focussing on buy-out and growth investments in the UK requiring equity of up to GBP10 million.
All YFMEP 2016’s investors are UK based, drawn from institutions, families and individuals with the average investment around GBP2.5 million.
With only a few funds targeted at this market, YFM is looking to invest the monies within two years; with a strong flow of opportunities identified across its Leeds; Manchester; Birmingham; London and Sheffield offices. Two investments have already been completed with the prospect of 30-35 per cent of funds invested by the end of this summer.
Due to the strong demand for investment into this fund, YFM is now preparing for its next buy-out fund, scheduled to be announced in the coming year.
David Hall, managing director of YFM, says: “With YFMEP 2016 we identified a clear gap in the market – targeting UK buy-out and growth investments which require a shorter investment period than average. Whilst this fund was over-subscribed, we felt it was important to close at this stage to ensure that we deliver on this reduced investment time.
“We are thrilled by the appetite for this fund – which was raised in just over nine months. While accommodating the institutional and high net worth investors in one vehicle required additional time, we now have all the infrastructure in place for the next fund and look forward to building upon our track record of using our local networks to invest in successful regional deals.”
