First closing: Multi-manager program YIELCO Specialty Lending II offers high-yield niche strategy with attractive risk hedging

• Contin­u­ation of successful specialty lending strategy with broad thematic diver­si­fi­cation across niche segments offering enhanced return potential
• Focus on asset-based lending and tailor-made financing solu­tions beyond tradi­tional private equity-oriented strategies
• Conser­v­ative fund of funds program YIELCO Senior Debt II remains open for subscrip­tions

Munich/Zurich/Madrid/Luxembourg, July 23, 2025 – YIELCO Invest­ments Group (“YIELCO”), a private markets specialist, announces the first closing of its fund of funds program YIELCO Specialty Lending II (“YSL II”). Building on the success of its prede­cessor fund, YSL II pursues a cycle-inde­pendent niche strategy with a focus on senior secured asset-based loans, which offer broad diver­si­fi­cation, stable current interest income, and addi­tional return potential via equity kickers.

Attractive return profile with high risk hedging
“Demand for differ­en­tiated private debt strategies is growing noticeably as many investors seek reliable and high-yield alter­na­tives in uncertain market phases. With YIELCO Specialty Lending II, we offer access to estab­lished asset-based lending managers with a proven track record. The focus is on senior secured credit instru­ments with conser­v­ative loan-to-value ratios backed by assets. In addition, invest­ments in potential value appre­ci­ation open up attractive upside potential. This allows stable current income to be combined with addi­tional value appre­ci­ation. Our goal is to build a broadly diver­sified and robust port­folio that combines stable current distri­b­u­tions of 6 to 8 percent per annum with a target net IRR of 11 percent per annum. YIELCO has already demon­strated the potential of this strategy with the success of its prede­cessor fund, YSL I: The port­fo­lio’s real­iza­tions to date show a gross return of 34 percent with a gross multiple of 1.57x,” explains Dr. Matthias Unser, founding partner and member of the Exec­utive Board of YIELCO Invest­ments.

Broad diver­si­fi­cation, access to estab­lished specialists
YIELCO Specialty Lending II is struc­tured as a Luxem­bourg RAIF (SCA) with a target size of EUR 300 million. The program invests in more than 250 indi­vidual loans worldwide, primarily in Europe and North America, through 12 to 15 specialized managers. The port­folio will be built up rapidly through access to care­fully selected funds, including several proven partners from the prede­cessor program.

Thanks to its broad diver­si­fi­cation, strong asset collat­er­al­ization, and focus on complex, often less acces­sible financing situ­a­tions, YSL II provides ideal thematic diver­si­fi­cation to tradi­tional direct lending strategies. Investors thus gain a largely uncor­re­lated building block with a high security profile and above-average return potential.

YIELCO Senior Debt II still open for subscrip­tions
In addition to YIELCO Specialty Lending II, the conser­v­a­tively oriented fund of funds program YIELCO Senior Debt II (“YSD II”) with a target size of EUR 250 million is currently open for further subscrip­tions. The strategy focuses on senior secured loans in the European lower mid-market and offers investors high risk protection combined with attractive risk premiums compared to liquid invest­ments. A port­folio of over 300 loans is to be built up through around 10 fund invest­ments.

“We are very pleased with the positive fundraising momentum of YSD II with two further closings in the first half of this year. With an attractive total return – the target net IRR is 7 to 8 percent p.a. – and a high current interest rate of approx­i­mately 6 percent, the fund is partic­u­larly aimed at risk-averse investors looking for predictable distri­b­u­tions. The port­folio is already well advanced: six fund subscrip­tions with a late primary focus have resulted in 151 loans being added to the port­folio to date. New investors benefit from a rapid capital call profile as they partic­ipate directly in the existing port­folio,” explains Börge Grauel, Partner and Co-Head of Private Debt at YIELCO Invest­ments.

Long-standing expertise in the private debt segment
The YIELCO Partners have a successful track record with more than 20 years of expe­rience, over 220 fund invest­ments and a volume of over EUR 7.2 billion since 2003 in the private debt sector. This ensures access to leading global managers with a focus on the attractive small and mid-market segment.

About YIELCO
YIELCO Invest­ments is an inde­pendent global private markets investment specialist with offices in Germany, Switzerland, Spain and Luxem­bourg. The group services over EUR 11 billion in capital commit­ments from insti­tu­tional investors across the asset classes of private equity, private debt, and infra­structure.

Disclaimer
This is a marketing adver­tisement. The afore­men­tioned funds are only offered to profes­sional investors within the meaning of Annex II of Directive 2014/65/EU (MiFID II) and semi-profes­sional investors in accor­dance with Section 330 of the German Capital Investment Act (KAGB). Invest­ments in alter­native investment funds are highly illiquid and involve a high level of risk. The targeted high returns may not be achieved. The value of an investment can fall as well as rise. There is a risk of a total loss of the invested capital.

Contact for press enquiries
YIELCO Invest­ments
Susanne Rizzo
Phone +49 89 2323 9297–36
susanne.rizzo@yielco.com