YFM closes Buyout Fund III ahead of target at £95.5m

Investment giant, YFM Equity Partners, has announced the final close of its Buyout Fund III, with £95.5m of committed funds and a high percentage of new entrepreneurial investors in place.

Against a challenging backdrop for the wider private equity fundraising sector, YFM has:

• Exceeded its original £80m 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

In addition to attracting a large proportion of investors who are new to YFM, Buyout Fund III has drawn in a high number of repeat investors, 70%, who responded to impressive performances from Buyout Funds I and II.

Both funds are performing strongly and ahead of plan and Buyout Fund II is on track to make a total of 10 investments by the end of 2023.

YFM’s latest fundraise success comes during a significant period of growth for the PE firm. It has invested heavily in new talent, bringing in a raft of investment experts and professional support specialists – with recent appointees including a dedicated direct origination lead.

The firm now manages funds in excess of £630m and a focus on developing a leading regional presence remains central to its investment strategy.

Buyout Fund III will typically invest between £5m and £15m per transaction into businesses with strong growth potential located across the UK regions through YFM’s network of offices in London, Leeds, Manchester, Reading and Birmingham.

The fund is targeting to invest over a three-to-four-year period, with its investment programme commencing in 2024.

Eamon Nolan, YFM managing partner, said: “This is an exceptional result which proves that, even in a tougher fundraising environment, there is an appetite for investment when the right opportunity is presented.

“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.”

He added: “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.”