YFM Group Sold
FUND manager YFM Group has been bought by a London-based group.
The deal, for an undisclosed sum, sees the exit of the management team who, led by Clive Leach, Phil Cammerman and Peter Claydon, acquired a stake in the business in 2003 from the West Yorkshire local authorities who owned it.
YFM – which manages funds in excess of £300m as well as two quoted Venture Capital Trusts and manages the Partnership Investment Finance fund and the South Yorkshire Investment Fund – has been acquired by Greater London Enterprise (GLE).
It will become an arm of GLE and will remain headquartered in Leeds.
GLE is London's economic development company – owned by all 33 London boroughs – however it operates commercially and receives no public subsidy.
The GLE group comprises five business areas – Enterprise Development, Consultancy Services, Commercial Finance, Growth Capital and Property.
It manages a £7m loan fund and has provided finance to more than 400 start up and early stage businesses.
The group now supports approximately 6,500 small companies each year and employs more than 200 people.
The combined businesses will now employ over 320 highly qualified staff in the UK and on the Continent, and manage funds of more than £335m.
Martin Large, chief executive, GLE said: “The joining of GLE and YFM will open up new opportunities for both businesses. Both companies share a similar history and a passion for innovative solutions for small businesses. The union will further build on the national presence and strong reputation of YFM. I very much look forward to a very positive future for GLE and YFM”.
During the past 12 months Leeds-based YFM Group – formerly called Yorkshire Fund Managers and the most active investor in the UK small-to-medium enterprise (SME) sector – has seen the number of companies backed by its funds rise by almost 20% while the total size of deals completed rose by around 60% to £237m, more than double the 2006 figure of £110m.
Last year YFM Group completed its single largest deal with the backing of the £21m management buy-out of RMS Group – a port operator and stevedoring business based on the Humber estuary – in which four funds were used to provide £4.5m equity.
Other companies backed during the year include the management buy-in of recruitment group Harris Hill; the MBO of kitchen manufacturer and retailer Harvey Jones; the MBO of Cater Plus, which offers catering services to residential care homes and development capital for Intempo Digital.
YFM managing director David Hall said: “Joining forces makes logical sense for YFM employees, clients, partners and the wider business community. YFM's businesses fit very well alongside GLE's growth capital and business development activities and together both groups will be significantly stronger.”
Roger Esler, corporate finance partner, and Dale Alderson at Deloitte in Leeds advised YFM Group on the sale.
YFM has offices in Leeds, Sheffield, Manchester, Bristol, London and Hull.
Picture shows from left: David Hall, managing director, YFM Private Equity; Peter Garnham, managing director, YFM Venture Finance; Martin Large, chief executive, GLE Group; Ray Lowe, managing director, YFM Business Development; Dale Anderson and Roger Esler from Deloitte, who advised YFM Group.
