£95.5m Fund Close for YFM, as Firm Stays Focused on Unearthing Exceptional Opportunities for Investors

YFM Equity Partners (YFM) announced their Buyout Fund III close that has bucked the trend in the wider PE fundraising sector. With £95.5 million of committed funds and a high percentage of new entrepreneurial investors in place, YFM has:

• Exceeded its original £80 million target for Buyout Fund III
• Achieved a first time YFM investor rate of 33%
• Marked the highest amount raised to-date by a YFM Buyout Fund

As well as drawing in a large proportion of first time investors, Buyout Fund III has attracted a high number of repeat investors – 70% – who responded to impressive performances from Buyout Funds I and II. These funds are performing strongly and ahead of plan, with Buyout Fund II on track to make a total of 10 investments by the end of 2023.

Investing in excellence

With funds committed, Buyout Fund III is now set to make typical investments of between £5m and £15m per transaction. It will invest into businesses that demonstrate strong growth potential and which are located across the UK regions, through YFM’s network of offices in London, Leeds, Manchester, Reading and Birmingham. The fund’s investment programme will commence in 2024 and is targeting to invest over a three-to-four-year period.

Capitalising on expertise and regional knowledge

This latest fundraise has come during a significant period of growth for the PE firm. By investing heavily in new talent and bringing in a raft of investment experts and professional support specialists, the firm is exceptionally well-placed to uncover new opportunities. Central to its investment strategy is an emphasis on developing a leading regional presence.

The success of the Buyout III fundraise is testament to YFM’s expertise, regional weight and distinct position within the market, says YFM Managing Partner, Eamon Nolan. He comments: “When the right opportunity is presented, there is still an appetite for investment.

“What has resonated with investors is our strong regional presence and focus on investing in smaller businesses – an end of the market that is less well-served but where a rich seam of growth opportunity exists.”

“The majority of our investors are high net worth entrepreneurs who want to support others like themselves – small business founders with vision and scale-up ambition.

“Thanks to our long-established network of regional offices and teams, we have our ear to the ground in the regions and can identify promising investment opportunities ahead of the market. This supports our funds to perform well and deliver good returns for investors.”

“Our strategy of continued investment into the fund is also paying dividends and helps to engender investor loyalty – evidenced by the high rate of repeat investors in Buyout Fund III.

“What we have proven with Buyout Fund III is that, where the right opportunity is presented, there is still an appetite for investment. We now look forward to supporting fast-growing businesses across the UK through the new fund and to building even stronger relationships with our investors.”