Yielco Investments AG, a financial services provider specialising in investment solutions in infrastructure, private debt and private equity, has reached the final closing of its US-focused private equity multi-manager program “YIELCO Special Situations II” at the hard cap of $455m. Yielco also reports the successful launch of new private equity, private debt and infrastructure products with capital commitments totalling approximately $526m.
The program invests in private equity funds with a focus on complex buyouts, turnarounds and distressed debt for control acquisitions. The investment focus thereby lies on small and mid-sized transactions in North America. To date, over 60% of the fund’s capital has already been committed to 11 funds.
Yielco has also held first closings for its “YIELCO Special Situations Europe II” private equity fund as well as for its co-investment fund “YIELCO Defensive Investments”. The “YIELCO Special Situations Europe II” fund will set forth YIELCO’s successful fund of funds series in value investing, in this case with a focus on Europe. The fund has a target capitalisation of $363m and already closed on around $255m. In addition, YIELCO launched its first dedicated co-investment fund, “YIELCO Defensive Investments”.
This fund has a target capitalisation of around $181m and focuses on attractive small and medium-sized co-investments. The transactions are characterised by comparatively low entry multiples, moderate debt levels and a high level of asset protection, thus exhibiting a strong defensive profile with high-risk protection. These investments are made alongside fund managers from Yielco’s network. Since the fund’s launch at the end of 2020, “YIELCO Defensive Investments” has already participated in three transactions.
“We are very happy to see our investors’ continued trust in Yielco’s various private equity programs, especially in these times,” said Maria Sanz, Partner and Co-Head of private equity at Yielco “The current market turmoil offers a multitude of attractive opportunities and will continue to do so for investors with the necessary skills for the repositioning of companies facing operational and financial trouble. We have more than 15 years of experience in this specific segment and have built a broad network of relationships in Europe and North America.”
Within the private debt asset class, Yielco recently held a first close for the multi-manager program “YIELCO Specialty Lending” with commitments totalling around $152m. The fund is targeting $363m in commitments and will invest globally in funds that provide companies with asset-backed specialty financing. “YIELCO Specialty Lending” is the second product-strategy of the firm in the private debt space. The first “YIELCO Private Debt” fund of funds closed last year and focuses on senior direct lending and running yields. Yielco plans to launch the successor fund for this conservative investment strategy in the second half of 2021.
Dr. Matthias Unser, Partner and Co-Head of private debt at Yielco, adds: “Our program for Specialty Lending invests in funds whose managers provide capital to companies that would otherwise not have access to debt financing based on their earnings. The highly specialised industry experience characterises our selected managers, which clearly differentiates them from traditional banks or direct lending managers. Despite the high asset protection, the expected returns are well into the double-digit range.”