YFM unveils £90m British Smaller Companies VCTs Fund close

The latest fund raise offer from YFM Equity Partners’ managed British Smaller Companies Venture Capital Trusts (VCTs) has closed with £90m of committed funds in place.

Despite a challenging climate in the wider fundraising sector, YFM has fulfilled its original £65m offer for the VCTs fund raise, plus an over-allotment facility of £25m.

This has been an exceptional year for YFM fund raise activity. In December 2023, the firm announced a £95.5m close of its Buyout Fund III, marking the highest amount raised to date by a YFM Buyout Fund.

YFM’s British Smaller Companies VCT plc was first listed on the stock exchange in 1996 and was followed by the British Smaller Companies VCT2 plc in 2000.

The funds are two of the longest running VCTs on the market and have more than 15,000 shareholders in place at present.

YFM’s VCT investment strategy, which seeks to build a broad portfolio of investments in early stage, smaller companies that are focused on growth, has resulted in consistent returns across both VCTs.

With the new funds in place, YFM will seek to capitalise on high quality investment opportunities in the UK regions.

The firm has built a strong regional presence with offices in Manchester, London, Leeds, Reading and Birmingham, enabling its investment team to be active in regional markets and to quickly identify investment promise.

Since January 2022, YFM’s VCTs have invested approximately £70m in a number of young fast-growing UK businesses, across the UK. Included in its portfolio is North West ‘unicorn’, Matillion, a Manchester-based cloud data integration platform.

Eamon Nolan, YFM Managing Partner, said: “Once again, we have proven that there is a strong appetite to invest, where the right opportunity – one that truly resonates with investors – is delivered.

“Undoubtedly, the longevity and strong track record of our BSC VCTs have proven a draw to new and repeat investors alike. All are attracted to the idea of supporting small, ambitious businesses, which are carving out leading positions in their sectors, from their regional bases.”

He added: “Our VCTs continue to bridge a funding gap for smaller, dynamic businesses seeking to accelerate growth and, in doing that, they boost the regional and national economies. We now look forward to helping more businesses fulfil their potential.”