Strong first half brings YIELCO signif­icant growth: Final closing of several funds, opening of the Madrid office, and reaching EUR 10 billion in managed capital commit­ments

Munich/Zurich/Madrid/Luxembourg

Munich/Zurich/Madrid/Luxembourg, August 2nd, 2023 — YIELCO Invest­ments Group (“YIELCO”), a private markets investment specialist, announces the successful closing of two funds and the opening of a new office in Madrid with a dedi­cated country head. The company, which is approaching the signif­icant EUR 10 billion mark for assets under service, announces the final closings of two programs in the first half of 2023 and its new strategies and activ­ities for the second-year half.

YIELCO, a financial services company special­izing in infra­structure, private debt and private equity investment solu­tions, announces the final closings of two differ­en­tiated programs – YIELCO Specialty Lending and YIELCO Defensive Invest­ments. The private debt multi-manager program YIELCO Specialty Lending, a program focused on the primary orig­i­nation of senior secured loans that are backed by hard or financial assets (“asset-based lending”), success­fully had its final closing at the end of April well above EUR 200 million. “YIELCO Specialty Lending has already executed nine fund commit­ments. And the port­folio already shows a very successful start in terms of perfor­mance, driven by a high cash yield and by the first successful refi­nancings with addi­tional upside partic­i­pation,” comments Börge Grauel, Private Debt Co-Head at YIELCO.

YIELCO’s first dedi­cated value-focused private equity co-investment fund, YIELCO Defensive Invest­ments, also held its final closing at the end of April – over­sub­scribed at EUR 159 million. The fund focuses on attractive small and mid-market co-invest­ments with a value orien­tation. The trans­ac­tions feature defensive elements such as low entry multiples, moderate leverage ratios, and a high degree of asset protection. Manuel Deimel, Head Co-Invest­ments at YIELCO, elab­o­rates, “Since the fund’s inception, YIELCO Defensive Invest­ments has partic­i­pated in eight trans­ac­tions and is already seeing strong valu­ation uplifts, driven primarily by the positive oper­ating devel­opment of the under­lying companies”.

In line with the growth of the firm, YIELCO has expanded its European presence by opening a new office in Madrid in the first half of the year. Former Mutua Madrileña profes­sional, Julián Álvarez, has been hired as a director to head the office and the activ­ities in Spain. Situated in the heart of the Madrilenian business neigh­borhood “Sala­manca”, the office and its dedi­cated team is set to drive YIELCO’s growth and foster mean­ingful rela­tion­ships in Spain. “I’m happy to strengthen our rela­tion­ships in Spain with our esteemed fund managers and provide even closer support to our valued local clients” expressed Julián Álvarez.

“We firmly believe that the current market condi­tions present a vast array of attractive investment oppor­tu­nities in the areas we cover. At YIELCO, our value-focused investment strategies enable us to capi­talize on these favorable condi­tions, ulti­mately creating substantial value and deliv­ering outstanding returns for our investors” comments María Sanz, Private Equity Co-Head at YIELCO.

In the segment of private debt, YIELCO was recently co-mandated by a renowned German pension fund to build up its private debt port­folio over the coming years. Dr. Matthias Unser, Private Debt Co-Head at YIELCO, explains: “Over the recent years, private debt has shown that it can with­stand market turmoil offering investors stable and reliable yields. The current market condi­tions are considered by many to be the most attractive in at least the last ten years. Investors are increas­ingly real­izing this and are beginning to invest (again) in private debt.”

YIELCO Infra­struktur III and YIELCO Special Situ­a­tions Europe II are still open for new investors, offering high visi­bility and already attractive valu­a­tions. Both programs have shown strong perfor­mance despite still being in their early phase. “YIELCO Infra­struktur III continues the success of its two prede­cessors: with a call rate of 45%, seven commit­ments, and a MOIC of 1.3x it is an appealing late primary oppor­tunity for investors in the infra­structure sector, which continues to gain rele­vance” mentions Uwe Fleis­chhauer, Infra­structure Co-Head at YIELCO. YIELCO Special Situ­a­tions Europe II, with ten executed fund commit­ments, offers excellent visi­bility and already first distri­b­u­tions to investors.

YIELCO Special Situ­a­tions III, YIELCO’s sixth value-focused private equity program, focuses on investment oppor­tu­nities in the USA and continues the successful value investing strategy of the firm. The port­folio provides access to funds special­izing in complex buyout and turn­around trans­ac­tions in the North American middle market. With four commit­ments completed and one in final due dili­gence, the port­folio is already in the build-up phase. The fund remains open for investors until mid-2024, allowing them to capture this favorable moment for value investing strategies. YIELCO’s product pipeline for 2023/24 further entails a senior debt and a specialty lending product as well as an infra­structure and an impact co-investment fund.

In the first half of 2023, YIELCO has continued to follow its successful path approaching the signif­icant mile­stone of EUR 10 billion in assets under service. “The company’s growth and progress during this period is remarkable. YIELCO will remain committed to its vision: to offer excellent investment oppor­tu­nities to its loyal client base and to cultivate a nurturing and pleasant working envi­ronment for its talented and moti­vated team”, says Dr. Peter Laib, Chairman of the Super­visory Board of YIELCO Invest­ments AG.

 

About YIELCO

YIELCO is an inde­pendent, global private markets invest­ments specialist based in Germany, Switzerland, Spain and Luxem­bourg. The Group currently manages around EUR 10 billion in capital commit­ments from insti­tu­tional investors and family offices and invests in infra­structure, private debt and private equity.

 

Contact

YIELCO Invest­ments Group
www.yielco.com

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