£22m private equity fund launches in Leeds

PRIVATE equity fund managers YFM Equity Partners have launched a 2016 fund.

The 2016 Fund from the firm, which is based in Leeds and has offices in Sheffield, London, Manchester and Birmingham, will allow investors to participate in investments which do not qualify for venture capital trust investment.

YFM has secured £22m from existing pension funds as well as family office backers. It is looking to raise a further £10-15m of private equity capital over a two-year investment period.

YFM said that VCTs can no longer deploy investment in the private equity buyout market and they had created the fund to address the gap.

David Hall, managing director of YFM said: “Changing UK legislation is likely to reduce the pool of private equity investment opportunities eligible for access through VCTs, thereby creating a potential funding gap for growing SMEs. With YFM’s strong track record of supporting small, ambitious UK businesses looking for private equity investment, we are well-placed to address this shift in the market dynamics and are proud to have successfully launched YFMEP 2016.

“Having already secured these cornerstone commitments, we are looking forward to the next phase of fundraising and providing both our existing and new investors with an attractive private equity alternative alongside our traditional VCT offerings. With our established investment team I am confident YFMEP 2016 will deliver strong returns.”