YFM Equity Partners has closed its latest fund at £95.5 million.

The private equity firm says Buyout Fund III, its largest fund to date, proves that strong investor appetite continues to exist despite the macroeconomic challenges currently being experienced by the technology and wider business sectors.

YFM exceeded its original £80m target with the fund, which achieved a first-time YFM investor rate of 33%.

It says its original two funds are performing strongly and ahead of plan, with Buyout Fund II on track to make a total of 10 investments by the end of 2023.

YFM’s latest fundraise success comes during a significant period of growth for the PE firm. It has invested heavily in new talent, bringing in a raft of investment experts and professional support specialists – with recent appointees including a dedicated direct origination lead.

The firm now manages funds in excess of £630m and a focus on developing a leading regional presence remains central to its investment strategy.

Buyout Fund III will typically invest between £5m and £15m per transaction into businesses with strong growth potential located across the UK regions through YFM’s network of offices in London, Leeds, Manchester, Reading and Birmingham. 

The fund is targeting to invest over a three-to-four-year period, with its investment programme commencing in 2024. 

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“This is an exceptional result which proves that, even in a tougher fundraising environment, there is an appetite for investment when the right opportunity is presented,” said Eamon Nolan, YFM managing partner.

“What has resonated with investors is our strong regional presence and focus on investing in smaller businesses – an end of the market that is less well-served but where a rich seam of growth opportunity exists.

“The majority of our investors are high net worth entrepreneurs who want to support others like themselves – small businesses founders with vision and scale-up ambition.

“Thanks to our long-established network of regional offices and teams, we have our ear to the ground in the regions and can identify promising investment opportunities ahead of the market. This supports our funds to perform well and deliver good returns for investors.

“Our strategy of continued investment into the firm is also paying dividends and helps to engender investor loyalty – evidenced by the high rate of repeat investors in Buyout Fund III. 

“We now look forward to supporting fast-growing businesses across the UK through the new fund and to building even stronger relationships with our investors.”

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