YFM Equity Partners closes first buy-out fund at £45m

YFM Equity Partners, the specialist private equity fund manager, has closed its first buy-out fund at £45m, 50% above its initial target.

Launched last year, the fund is targeted at the gap left by venture capital trusts, focusing on buy-out and growth investments in the UK requiring equity of up to £10m. All YFMEP 2016’s investors are UK based, drawn from institutions, families and individuals with the average investment around £2.5m.

With only a few funds targeted at this market, YFM is looking to invest the money within two years with a “strong flow of opportunities” identified across its Leeds, Manchester, Birmingham, London and Sheffield offices. Two investments have already been completed with the prospect of 30-35% of funds invested by the end of this summer.

YFM says it is now preparing for its next buy-out fund, scheduled to be announced in the coming year.

Managing director of YFM, David Hall, said: “With YFMEP 2016 we identified a clear gap in the market – targeting UK buy-out and growth investments which require a shorter investment period than average. Whilst this fund was over-subscribed, we felt it was important to close at this stage to ensure that we deliver on this reduced investment time.

“We are thrilled by the appetite for this fund – which was raised in just over nine months. While accommodating the institutional and high net worth investors in one vehicle required additional time, we now have all the infrastructure in place for the next fund and look forward to building upon our track record of using our local networks to invest in successful regional deals.”

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