Yolo Investments aims to raise US$250 million with the Abu Dhabi-based fund
Yolo Investments has launched its third fund to invest in fintech, crypto and gaming businesses after securing approval in Abu Dhabi.
Yolo Investments Fund III is authorised and regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi and aims to raise US$250 million to invest in Series A–C rounds.
The fund will have a global mandate and a focus on the Middle East and North Africa (MENA) region, backing entrepreneurs in the fintech, crypto and gaming sectors.
“What ties them together is the movement of money itself,” said Yolo Investments chief executive Tim Heath. “Our fintechs power payment rails for our gaming portfolio; our gaming operators become anchor customers for our fintech and crypto companies. That kernel, built across a decade of active portfolio management, is the edge we offer founders.”
Heath added that Abu Dhabi in the United Arab Emirates was selected as the jurisdiction for the new fund due to its use of English common law, a principles-based regulator in the FSRA, and a direct seat within one of the deepest pools of institutional capital in the world.
“Being regulated in the same jurisdiction as our LPs [limited partners] is now a prerequisite for institutional allocators, and Abu Dhabi clears all three bars,” Heath continued.
Yolo Investments Fund III builds on the success of Fund II, which has delivered a 51.6 per cent net internal rate of return and 1.36x total value to paid-in capital.
Yolo is currently finalising the subscription documents for the new fund and onboarding partners, with deployment set to begin upon first close.