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.