YIELCO reaches over EUR 9 billion in assets under service and announces three senior hires for 2023

Munich/Zurich/Madrid/Luxembourg

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

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