YFM regains independence

Alice Murray
01 October 2013

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YFM Equity Partners has spun out of GLE Group to become an independent entity.

The spin-out comes as YFM launches its newest vehicle, targeting £100m. YFM is also planning to raise £20m for its British Smaller Companies VCTs.

GLE Group, a property investor owned by 33 local authorities in London, acquired Yorkshire-based YFM Group in April 2008 from management. The deal was struck as the UK venture capital industry hit the doldrums following the explosive dotcom bubble in the late-1990s and the removal of major players including 3i and Apax Partners, both of which strengthened their focuses on buyouts rather than early-stage investing.

GLE and YFM were natural bedfellows as both were established by London and Yorkshire local authorities respectively in the early-1980s to support economic development and entrepreneurs.

According to reports at the time, the deal was triggered by succession issues, with some of YFM's management wanting to retire and cash in on their shares.
Following the separation, YFM will continue to invest around £10m into growth businesses through its institutional and VCT funds. YFM believes that being an independent owner-managed company will enable it to become simplified and will allow team members to spend more time on making investments and growing value in portfolio companies.

GLE's main focus going forward will be on providing development needs for smaller and early-stage companies including business services, finance for cash-flow, accommodation and loans.