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