Munich/Zurich/Luxembourg, January 13th, 2023 — YIELCO Investments Group (“YIELCO”), a private markets investment specialist, announces the first closing of its sixth private equity multi-manager program, YIELCO Special Situations III. Along with the launch of a large private debt mandate, the company surpasses the EUR 9 billion mark for assets under service, announces the upcoming final closings of two additional programs and three high-profile hires for 2023.
YIELCO, a financial services company specializing in infrastructure, private debt and private equity investment solutions, announces the first closing of its sixth private equity program, YIELCO Special Situations III, which, like its predecessors, was again backed by renowned institutional investors. The program is the third private equity fund of funds to focus on investment opportunities in the USA and continues the successful value investing strategy. With a target fund size of USD 450 million, the portfolio provides access to many by-invitation-only funds specializing in complex buyout and turnaround transactions in the North American middle market. The portfolio is already in the build-up phase with four subscriptions completed.
“We are grateful for the continued confidence of our investors, especially in this turbulent and constantly changing market environment. Our managers, whose focus is on value investing (i.e. low entry multiples and leverage) and a highly operational approach to value generation, are enthusiastic about the wide range of attractive investment opportunities that the current environment offers”, explains María Sanz, Co-Head Private Equity at YIELCO.
In the segment of private debt YIELCO was recently mandated by a renowned foundation to build up its global private debt portfolio over the coming years. The aim is to achieve an attractive current yield while limiting risk through a focus on senior loan instruments. Selected mezzanine, specialty lending and credit opportunities strategies complement the investment spectrum. Dr. Matthias Unser, Co-Head Private Debt at YIELCO, explains: “Private debt offers investors a stable anchor in a volatile market environment, as recent developments have shown. In addition, there are very favorable investment opportunities for private debt managers in the foreseeable future, as traditional financing options are currently only available at a significantly reduced extent – if at all.”
With these new initiatives YIELCO has surpassed the EUR 9 billion mark in assets under service. “We are very pleased with the development of YIELCO since its foundation more than 11 years ago. We are also proud of our highly motivated team and grateful for the continuous support of our investors. It has been a great journey so far and we are very much looking forward to the years to come,” commented Dr. Peter Laib, Chairman of the Supervisory Board of YIELCO Investments AG.
YIELCO’s first dedicated private equity co-investment fund, YIELCO Defensive Investments, will hold its final closing in February 2023. 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 six transactions and is already seeing strong valuation uplifts, driven primarily by the positive operating development of the underlying companies. ”
The private debt multi-manager program YIELCO Specialty Lending will reach its final close in March 2023. The fund pursues a thematically diversified approach in the area of specialty finance strategies and invests globally. Risk mitigation is of great importance, which is achieved through the primary origination of senior secured loans that are backed by hard or financial assets (“asset-based lending”). “YIELCO Specialty Lending began its investment period in 2021 and to date has executed commitments to seven target funds. The portfolio has also shown a very successful start in terms of performance, driven by a high cash yield and first successful refinancings with additional profit participation,” comments Börge Grauel, Co-Head Private Debt at YIELCO.
In line with the growth in assets under service, YIELCO expanded its team by three senior professionals at the beginning of the year. Iwan Heiz, an experienced professional, joins YIELCO as Co-CFO from UBS, where he was Head Product Management of Real Estate and Private Markets. Thus, the principle of dual leadership for the management of the investment and operational business areas will also be established for the Finance division. In addition, the YIELCO team will be strengthened by Daniel Höltschl as Director Business Development, formerly with Deutsche Bank, and Michael Stachowski as Investment Director in the Infrastructure division (previously with Wealthcap).
About YIELCO
YIELCO is an independent, global private markets investments specialist based in Germany, Switzerland and Luxembourg. The Group currently manages around EUR 9.1 billion in capital commitments from institutional investors and family offices and invests in infrastructure, private debt and private equity.
Contact
YIELCO Investments AG
Promenadeplatz 12/3 │ 80333 Munich │ Germany
www.yielco.com
