YFM holds £45m final close for maiden buyout fund

The GP also stated that it is preparing to launch its second buyout fund, which is scheduled to be announced in the coming year.

The final close comes 11 months after the GP held a first close for the vehicle on £22m. At the time of the first close, YFM was understood to have marketed the fund without the help of a placement agent.

According to a statement issued by YFM, the fund could be deployed at 30-35% by the end of Q3 2017.

YFM raised YFMEP 2016 shortly after UK regulatory changes were introduced in November 2015, limiting the types of deals permissible to VCT funds. In particular, the regulations mean VCT funds can no longer take ownership stakes, are limited to investing a maximum of £12m per asset – £20m where the business is judged to be "knowledge-intensive" – and can only invest in companies under a certain age.

Investors
The vehicle attracted an average commitment of £2.5m from institutions, family offices and high-net-worth individuals. Its LP pool consists entirely of UK-based investors.

According to unquote" data, investors in the fund include City of London Pension Fund and Kent County Council Superannuation Fund (click here to view the complete fund profile).

Investments
YFMEP 2016 makes investments of up to £10m in profitable businesses in the UK. In order to offer greater liquidity and less cash-drag to investors, the fund has a shortened investment period of two years, during which fees will only be applied upon the draw-down of LPs' capital.

The vehicle has made two investments to date, backing the management buyouts of telecommunications network installation business Indigo Telecom Group and rubber and metal industrial components supplier Ferrabyrne.

People
YFM Equity Partners – David Hall (managing director).

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