Investing in Private Equity

Why invest in Private Equity?

Private equity invest­ments are an estab­lished component of investment port­folios due to their attractive return potential, the diver­si­fi­cation effect in the port­folio and the focus on long-term, sustainable value gener­ation.

The continuous rise in demand has led to a signif­icant expansion of the market over the last 20 years. Careful selection and effective access management will continue to be essential for sustainable success in the future. The past few years, which have been char­ac­terised by crises, have also led to a rethink in terms of value gener­ation. The main focus is no longer solely on financial opti­mi­sation, but on genuine growth based on oper­a­tional added value.

YIELCO focuses on oppor­tu­nities across the various private equity strategies (venture capital, growth capital, buyout, turn­around), partic­u­larly in the buyout area, with a focus on “value investing”. The focus here is on trans­ac­tions that have a higher degree of complexity and can be acquired at low entry valu­a­tions and compa­rably low levels of debt. In its imple­men­tation, YIELCO focuses on managers who have strong oper­a­tional value creation approaches and resources. This approach enables the port­folio to be posi­tioned inde­pen­dently of market cycles and opens up signif­icant return potential while at the same time providing a high level of risk protection. This differ­en­tiated investment strategy has led to an extremely successful port­folio, which YIELCO Private Equity makes available to its investors via broadly diver­sified funds of funds and co-investment funds.

Fund of funds

YIELCO’s Private Equity fund of funds offering comprises two programme series that pursue the same strategy but focus on different regions (Europe and the USA). The differ­en­tiated investment focus is on fund managers that pursue a value investing strategy in the small- and mid-market and that are char­ac­terised by a strong oper­a­tional approach to generate value. The indi­vidual programmes typi­cally comprise around 15 fund invest­ments (primaries and secon­daries), which leads to a broad diver­si­fi­cation containing more than 150 companies.

  • YIELCO Private Equity USA I, 2016
  • YIELCO Private Equity USA II, 2019
  • YIELCO Private Equity USA III, 2022
  • YIELCO Private Equity Europe I, 2017
  • YIELCO Private Equity Europe II, 2021

Co-invest­ments

With the YIELCO Defensive Invest­ments programme series, which carries on with the fund of fund strategy. YIELCO offers access to attractive co-investment oppor­tu­nities in the USA and Europe. The investment focus is on value investing oppor­tu­nities in the small- and mid-market, whereby the port­folio is specif­i­cally defen­sively orien­tated via low entry valu­a­tions and debt ratios. The focus is on complex trans­ac­tions, Corporate Succession Solu­tions, carve-outs, broken auctions and neglected private equity port­folio companies (“orphans”). The port­folio structure typi­cally comprises of around 15 direct company invest­ments.

  • YIELCO Defensive Invest­ments I, 2020
  • YIELCO Defensive Invest­ments II, 2025

Customised mandates

YIELCO Private Equity’s offering incor­po­rates the indi­vidual, customised devel­opment and expansion of a private equity port­folio across the entire strategy spectrum. The investment focus is on value investing, buyout and growth capital, whereby all size segments can be covered (small to large and mega funds/transactions). Investment oppor­tu­nities include primaries, secon­daries and co-invest­­ments.

  • There is no guar­antee that certain return or income targets will actually be achieved or that a positive return or income will be realised at all. The investment may result in a financial loss. Historical perfor­mance is not a reliable indi­cator of future perfor­mance.
  • There is no guar­antee that the funds will find a suffi­cient number of suitable investment prop­erties (blind pool risk). The target funds/investments and financing are only tradable to a limited extent and are very illiquid. The realised value may be lower than the true value of the investment.
  • Equity and equity-like instru­ments are generally subor­di­nated to debt cred­itors and other cred­itors and holders of senior capital instru­ments. Due to the type of investment, they can be subject to high risks, including total loss.
  • It cannot be ruled out that changes in legis­lation may worsen the compen­sation basis or other regu­latory condi­tions, even for existing projects.