YFM closes new £80m buyout fund

Mike White

YFM Equity Partners (YFM) has successfully closed its Buyout Fund II, ahead of target, with £80 million of committed funds and a wave of new high net worth and entrepreneurial investors.

The partner-led private equity firm with offices in Leeds, Manchester, Birmingham and London, now has over £300 million of funds under management across a portfolio of 40 companies and typically invests around £5 million per transaction.

Deals funded from the Leeds office include the investment in fast-growing passive fire protection company Checkmate Fire and Brighouse-based TEV Ltd which manufactures cooling, heating and refrigeration equipment.

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

“We’re also pleased to have attracted nearly 40 new investors, each typically committing sums of between £500,000 and £5 million, 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 Mr White.

Buyout Fund II will continue the strategy of the first fund, typically investing between £3 million and £10 million 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.