Private equity firm announces close of £80m fund

YFM Equity Partners (YFM) has announced the final close of its £80m Buyout Fund II.

The private equity firm with offices in Birmingham now has over £300m of funds under management across a portfolio of 40 companies and typically invests around £5m per transaction.

Deals funded from YFM’s Birmingham office include the recent investment in Innovative Safety Systems (ISS), based in Pershore, Worcestershire, which is a supplier and installer of vehicle safety systems into the commercial vehicle market with a focus on waste collection.

Mike White, YFM’s partner responsible for fundraising and investor relations, said: “The majority of Buyout Fund I investors have come into the new fund which is a strong sign of support from our investor base.

“We’re also pleased to have attracted nearly 40 new investors, each typically committing sums of between £500,000 and £5m, which is a great endorsement of our market, approach and performance.”

YFM’s strategy is to raise funds that are invested over three to four years, principally from high net worth, entrepreneurial investors. “This is a different approach to most private equity funds, but it’s delivered flexibility of timing between funds, increased the diversity of investors and works really well for funds of this size,” added White.

Buyout Fund II will continue the strategy of the first fund, typically investing between £3m and £10m per transaction into businesses with strong growth potential located across the UK regions through YFM’s network of offices in London, Leeds, Manchester and Birmingham. The fund is targeting to invest over a three to four year period, extending into 2023.

White continued: “It’s been encouraging that the momentum we have built up has continued to accelerate, resulting in a final close ahead of target. Most of our investors are owner managers who have realised value either partially, or in full, from businesses in the markets and sectors in which we invest. It’s been a real pleasure to meet these successful entrepreneurs who clearly show a strong empathy and understanding of what we do, how we do it, and are comfortable with the types of businesses we invest in.”