YIELCO INVESTMENTS AG, the German private markets manager with €11.6 billion in assets under management and an office in Madrid since 2023, continues to strengthen its European private equity strategy with the launch of its eighth fund, YIELCO Private Equity Europe III—the third focused on Europe—with a target size of €300 million, structured as a fund of funds.
The fund will offer two investment options: a vehicle in Luxembourg and a Sociedad de Capital Riesgo (SCR) domiciled in Spain, YIELCO’s fourth investment vehicle in the country. The Spanish SCR will have a size of €20 million, is currently undergoing registration with the CNMV, and will be open to both institutional and family investors in Spain.
YIELCO Private Equity Europe III will invest in primary and secondary funds targeting small and medium-sized European companies, following a differentiated private equity strategy focused on value-investing opportunities and complex buyouts. Key elements of the strategy include the managers’ ability to create value through operational improvements, enhance company performance, and protect investments against downside risk. The portfolio will consist of approximately 15 underlying funds, primarily located in Western Europe, with a 25% allocation to the United Kingdom and exposure to Germany, France, the Netherlands, Spain, Italy, and the Nordic countries.
María Sanz, Partner in YIELCO’s Private Equity team, explains: “In the current market environment, this new European private equity fund will offer our investors the opportunity to participate in funds led by teams with extensive experience and a proven track record in value creation, while maintaining a consistent and diversified strategy. We continue to provide access to high-quality investment opportunities that are resilient throughout economic cycles and offer strong downside protection, fully aligned with these principles.”
With its new European fund, YIELCO Investments reinforces its proven strategy of combining attractive returns with disciplined risk management. Its transactions are characterized by low entry valuations and conservative financing structures.
YIELCO Private Equity Europe III continues the approach of its predecessor programs, focused on the European mid-market, entering at below-market multiples and maintaining moderate leverage levels. The commitment period is expected to last between two and three years, with capital calls over six to seven years and distributions beginning from the fourth or fifth year.
The announcement follows the successful closing in 2025 of two private equity funds with a combined volume of €550 million: YIELCO Private Equity USA III (YPE USA III) and YIELCO Defensive Investments II (YDI II). The latter, specialized in co-investments in SMEs across Europe and North America, reached its €250 million hard cap in its Luxembourg vehicle due to strong investor demand. YDI II follows the successful model of its predecessor, YDI I, which returned to its investors in just four years an amount significantly above the invested capital after its initial exits.
YIELCO’s previous investment programs have exceeded their return targets, achieving a net annual IRR between 15% and 17%, compared with an initial target of 14%. In Spain, the German private markets manager has an extensive investment track record with local managers such as Sherpa Capital and PHI and is currently assessing new opportunities.
“In the current environment, Europe is gaining notable relevance and offers excellent opportunities for value-oriented investments in the small and mid-cap segment. In this regard, Spain is a key market in our international strategy,” notes Uwe Fleischhauer, Partner in the Infrastructure division.
For his part, Julián Álvarez, Country Head in Spain, concludes:
“With the launch of YIELCO Private Equity Europe III and our new SCR in Spain, we reinforce our commitment to the Spanish market and consolidate our position as one of the leading players in European private equity. With this fund and the new SCR, we take another step in bringing institutional-class private equity vehicles closer to Spanish investors.”
YIELCO INVESTMENTS AG is a German alternative investment firm aiming to generate attractive and predictable long-term returns with controlled risk. Headquartered in Munich with an office in Zurich, the firm opened its Madrid office in April 2023 (its third European office) to expand its investor base in Spain. In 2025, the firm strengthened its Spanish team with the addition of Elsa Van Hulst as Senior Sales, supporting Country Head Julián Álvarez.
YIELCO currently manages €11.6 billion across its three investment pillars: Private Equity, Infrastructure, and Private Debt. More information: www.yielco.com
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