YIELCO INVESTMENTS, the German specialist in private markets that established an office and local team in Madrid a year and a half ago, has launched its first Spanish private equity fund (FCR) to provide national investors access to top opportunities in the infrastructure sector. The new vehicle, named YIELCO Infrastructure Opportunities FCR, is the first fund from the German manager to be registered with the CNMV and will have a target size of between €20 million and €40 million. The fund is open to non-professional investors with a minimum investment ticket of €100,000 and will co-invest alongside the main fund, domiciled in Luxembourg, which has a target size of €200 million and a hard cap (maximum capital limit) of €300 million.
At a press roundtable in Madrid, YIELCO INVESTMENTS executives, María Sanz (Partner), Julián Álvarez (Country Head for Spain), and Uwe Fleischhauer (Founding Partner), highlighted the novelty of the vehicle being open to retail investors. "The significant global infrastructure investment gap should be partially filled by private investment. This private equity fund will allow a broad base of investors access to the best market opportunities alongside top infrastructure managers," explained María Sanz, Partner at YIELCO INVESTMENTS, who joined the firm's management team in 2018, overseeing private equity programs. “The fund will be invested over a period of five years from the first close, with a total duration of 10 years. This time frame is designed to provide enough time to execute the business plans of the portfolio companies and maximize returns.”
Both Spanish and international investors continue to show strong appetite for the infrastructure market, which is perceived as "a safe haven sector in times of uncertainty and high inflation, driven by the transformation of particularly attractive segments like digitalization, mobility, or energy transition," confirmed Uwe Fleischhauer, Founding Partner of the firm. "The global investment program focuses on transactions with mid-market managers, primarily in Europe and the U.S., selecting the best co-investments in this segment through numerous managers. The goal is to create a diversified portfolio of 12 to 15 investments, selecting the best co-investments in the Core+ and value-add segments, with a high level of diversification."
The YIELCO Infrastructure Opportunities FCR fund in Spain has high return expectations, targeting an annual return of 14%. The fund’s total duration, shorter than usual in the infrastructure market, makes it more adaptable to the new needs of investors. “We will invest in transition themes, both energy and digital, as well as other transition trends such as demographics, focusing on areas with the highest future growth potential. We seek net returns for investors of 1.8x and an average double-digit IRR, a very attractive yield supported by our strategy in the lower mid-market, where deals are less intermediated and valuations are more attractive," added María Sanz.
YIELCO INVESTMENTS has been distributing in Spain since 2018 through its three strategies: value private equity, private debt, and infrastructure. In April 2023, the German alternative investment manager opened its office in Madrid (Calle Lagasca 24), its third European location. "We are seeing strong appetite and interest among Spanish investors for this new fund and the advantages of co-investing alongside top-tier infrastructure managers as part of a global program," noted Julián Álvarez, Country Head and Head of YIELCO in Spain. According to Álvarez, “the vehicle offers a differentiated product focused on complementary niches for investors' portfolios, with limited risk and attractive conditions, highly competitive compared to other funds in its category.”
YIELCO has been investing in Spain since 2015 and has built a solid connection with the national market, both with investors and managers (general partners). Its current portfolio includes Spanish funds within its value private equity, infrastructure, or private debt strategies, such as PHI Industrial, Asterion, or Incus Capital. Additionally, the firm also works with pan-European managers such as Kartesia or Capza, who are very active in Spain, with local teams and offices in the country. Furthermore, it advises Singular Bank on its Global Buyouts 2022 fund for its wealth management clients.
About YIELCO INVESTMENTS
YIELCO INVESTMENTS is a German alternative investment manager that aims to generate attractive and predictable long-term returns with controlled risks. The firm, headquartered in Munich with an office in Zurich, opened its Madrid office a year and a half ago with the aim of offering its products to more local investors and expanding its investor base. It currently manages €10.6 billion in three asset classes: Private Equity, Infrastructure, and Private Debt. Its client base includes more than 80 institutional investors, such as insurance companies, pension funds, and European family offices. For more information: www.yielco.com.
cloud technology axon
Importantly, the significance of IPO markets extends beyond the compan...
