YFMEP 2016, the first buy-out fund from specialist private equity fund manager YFM Equity Partners, has closed at £45m, 50% above its initial target.
The fund was launched last year and is targeted at what the management believes is the gap left by venture capital trusts. The focus is on buy-out and growth investments in the UK requiring equity of up to £10m.
All YFMEP 2016’s investors are UK based institutions, families and individuals. The average investment is around £2.5m.
YFM intends to invest the monies within two years. The management have identified a strong flow of opportunities across its Leeds, Manchester, Birmingham, London and Sheffield offices.
YFM says that 30-35% of funds will be invested by the end of this summer and two investments have already been completed.
It looks likely that YFM will prepare another buyout fund later in the year.
Managing Director of YFM David Hall said: “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.”
