Yielco launches a private equity co-investment fund in Spain.

Yielco Investments is showing renewed interest in Spain and offering products tailored to alternative asset investors in this market. The Munich, Germany-based asset manager has registered a private equity co-investment fund in the country, with which it aims to raise a potential investment of between €40 and €50 million.

This is Yielco Defensive Investments II FCR , already registered with the National Securities Market Commission ( CNMV ). This vehicle is part of a larger project, which also includes a Luxembourg -based fund that has already raised €250 million. The roadmap calls for the two instruments to operate in parallel , investing simultaneously, albeit with different tickets , in transactions they identify as opportunities in Europe (with Spain among the reference countries) and North America.

The creation of a similar fund in terms of approach, but which adopts the market architecture of Spain, responds to Yielco's aim to provide comfort to local investors, who "usually prefer to invest in vehicles established according to Spanish regulations," notes Julián Álvarez , country head and top executive of the entity in the country.

"Spain is a key market in our growth and internationalization strategy," says Peter Laib , Yielco's founding partner and Chairman of the Supervisory Board. In this endeavor, "Yielco Defensive Investments II FCR represents a new milestone following the opening of the Madrid office in April 2023," he adds.

Yielco's new fund follows a value private equity perspective, that is, it focuses on transactions that involve a higher degree of difficulty ( carve-outs and complex shareholding situations, among others) or that require low entry multiples and leverage. It co-invests in these, taking minority stakes with highly capable operational managers who acquire a majority of the capital.

"Strong demand and strong results support our differentiated private equity strategy based on value investing . In a complex market environment, investors increasingly value strategies focused on value creation through operational improvements and conservative financial structures," highlights María Sanz , partner and co-head of Private Equity at the asset manager.

Yielco has identified that this specific proposal is well-received by investors, who appreciate the diversification it can bring to their portfolio. This is also true in Spain. In fact, thanks to the support it has received from local family offices and institutional investors, Yielco Defensive Investments II FCR is close to closing its first round. The final closing is expected by the end of the year.

The asset manager has also detected a strong appetite among Spanish investors for infrastructure , an investment area led by Uwe Fleischhauer , partner and co-head of the division. In this sector, Yielco launched a €200 million infrastructure fund, the first closing of which in Spain took place last April.

So far, the path followed in both strategies has yielded significant successes for the asset manager. Over the past five years, Yielco has more than doubled its assets under management and the number of professionals on staff. "In 2020, we had 20 employees and €4.5 billion under management; today we have more than 50 employees and a total of €11.3 billion," Laib emphasizes.