First Closing: Multi-manager programme YIELCO Senior Debt II offers access to attractive asset class with high return stability

• Contin­u­ation of the successful Senior Direct Lending strategy
• High degree of planning security through stable returns, strong risk protection, and early ongoing distri­b­u­tions
• Launch of addi­tional private debt product initia­tives in the area of speciality lending planned for 2024

Munich/Zurich/Madrid/Luxembourg, 2 September, 2024 – YIELCO Invest­ments Group (“YIELCO”), a specialist in private markets, announces the first closing of its fund of funds programme YIELCO Senior Debt II. The fund of funds continues the conser­v­ative strategy of the successful multi-manager programme YIELCO Private Debt (YPD), and partic­u­larly facil­i­tates access to the asset class for risk-averse investors. Focussing on senior secured loans for lower mid-market companies enables a high level of risk protection with attractive risk premiums compared to liquid invest­ments. The port­folio will be built from approx­i­mately 10 fund partic­i­pa­tions, encom­passing over 300 loans, with European trans­ac­tions accounting for more than 80 percent of the port­folio.

Dr Matthias Unser, founding partner and member of the Exec­utive Board of YIELCO Invest­ments AG, comments: “YIELCO’s first gener­ation senior private debt fund of funds programme is already fully invested and is showing a pleasing and stable perfor­mance with a current gross yield of around 11 percent and a loss rate of only 0.5 percent (including unre­alised losses). YIELCO Senior Debt II offers investors an alter­native to liquid fixed-income secu­rities, providing stable returns in the high single-digit range as well as strong risk protection and variable-rate loans. A rapid port­folio build-up with a high investment rate from as early as the fourth quarter of 2024 results in a short start-up period. In combi­nation with the low costs, this leads to a very flat or, at best, non-existent J‑curve. The secondary market offers us an increasing number of oppor­tu­nities for rapid port­folio build-up and early interest distri­b­u­tions. In addition to the distrib­uting share class, there is also an accu­mu­lating share class available, which ensures effi­cient capital deployment by auto­mat­i­cally rein­vesting capital repay­ments.”

YIELCO Specialty Lending II with focus on private debt niche strategies

In addition to YIELCO Senior Debt II, the follow-up product of YIELCO Specialty Lending is currently in the private debt product pipeline with an announced first closing in Q4 2024. The fund of funds focuses on private debt niche strategies with a focus on asset-based loans and thus offers investors thematic diver­si­fi­cation to the direct lending market. The prede­cessor fund is fully allo­cated and has a port­folio of over 200 loans with an attractive double-digit return.

In addition, YIELCO was able to start working with a new client from the eccle­si­as­tical supply sector this year. Over the next few years, a private debt port­folio of over EUR 100 million is to be built up with a focus on direct lending. The first commit­ments have already been success­fully realised.

The YIELCO partners have a successful track record with more than 20 years of expe­rience in private debt, ensuring access to the world’s leading managers with a focus on the attractive small and mid-market segment.

About YIELCO

YIELCO Invest­ments is an inde­pendent global private markets investment specialist head­quar­tered in Germany with offices in Switzerland, Spain and Luxem­bourg. The group manages over EUR 10 billion in capital commit­ments from insti­tu­tional investors and invests in the infra­structure, private debt and private equity asset classes.

Disclaimer
This is a marketing adver­tisement. The YIELCO Specialty Lending II fund described in the commu­ni­cation is currently in pre-marketing in accor­dance with Article 30a of EU Directive 2011/61/EU of 8 June 2011 on Alter­native Investment Fund Managers and is therefore not yet open for subscrip­tions. Alter­Domus Management Company S.A. has been appointed as potential AIFM of the fund. The afore­men­tioned funds are offered only to profes­sional investors as defined in Annex II of Directive 2014/65/EU (MIFID II) and semi-profes­sional investors according to § 330 of the German Investment Code (KAGB). Invest­ments in alter­native investment funds are highly illiquid and entail a high level of risk. The targeted high returns may not be achieved. The value of an investment may both increase and decrease. There is a risk of a total loss of the invested capital.

Contact for press enquiries

YIELCO Invest­ments AG
Susanne Rizzo
Phone +49 89 2323 9297–36
susanne.rizzo@yielco.com