YIELCO Investments AG, a specialist in alternative investments, is proud to announce the final close of its second generation private equity multi-manager program for special situations investments in North America with commitments at the hard cap of USD 455 million. YIELCO also reports the successful launch of new private equity, private debt and infrastructure products with capital commitments totaling approximately EUR 435 million.
YIELCO Investments AG, a financial services provider specializing 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 USD 455 million. 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 capitalization of EUR 300 million and already closed on EUR 211 million. In addition, YIELCO launched its first dedicated co-investment fund, “YIELCO Defensive Investments”. This fund has a target capitalization of EUR 150 million and focuses on attractive small and medium-sized co-investments. The transactions are characterized 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 totaling EUR 126 million. The fund is targeting EUR 300 million 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 specialized industry experience characterizes 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.”
Furthermore, the beginning of the year marked the launch of the third generation of the globally oriented multi-manager program “YIELCO Infrastructure III” with a target capitalization of EUR 400 million, continuing the successful strategy of its two predecessor funds. The fund invests in managers who focus on small and mid-market infrastructure investments with a core+ approach. In addition, very high standards are applied to the fulfillment of ESG (environmental, social, governance) criteria when selecting partners. The fund has already made its first capital commitments.
Uwe Fleischhauer, Partner and Co-Head of infrastructure at YIELCO noted: “We are very pleased to continue our successful infrastructure strategy with “YIELCO Infrastructure III”. The high value stability of our infrastructure investments has shown that as an asset class, it represents a very stable base for the portfolios of our investors even in times of extreme volatility.”
Dr. Peter Laib, Chairman of YIELCO’s Supervisory Board, commented: “We are very grateful that a large number of experienced institutional investors and family offices have once again placed their trust in us, especially in this time of great uncertainty. The capital commitments we have received, enabled us to significantly expand our network, particularly in Spain and the German-speaking region. Our programs in infrastructure and private debt offer investors a stable anchor in a volatile market environment. The special situations strategies in private equity are also very well positioned to take advantage of the numerous attractive opportunities arising from the market turmoil after COVID-19.”
About YIELCO Investments AG
YIELCO is an independent, globally active specialist in alternative investments operating from offices in Germany and Switzerland. The company currently manages around EUR 6.3 billion in capital commitments from institutional investors and family offices and invests in infrastructure, private debt and private equity.
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