2025 YELDO Performance report

We are glad to share our 2025 Performance Report, highlighting our dedication to transparency and celebrating another year of growth for YELDO.

EXECUTIVE SUMMARY

2025 reflects an expansion in the number of executed transactions, alongside a steady increase in repaid investments and a broader diversification of the portfolio.

• YELDO continued to scale its platform, reaching approximately EUR 1.8bn in total transacted value across around 70 deals. During the year, the Group expanded its investment footprint across asset classes while evaluating deals to entry into new European markets.
• Portfolio rotation remained strong, with 14 exits completed in 2025 and 18 new investments executed. As a result, total completed investments since inception reached 30, supporting disciplined capital recycling and deployment.
• Investors received EUR 62.2m in 2025, with realized returns averaging a gross IRR of 12.9%. Distributions reflected exits, early repayments, and coupon payments across the portfolio.
• Capital allocation shifted toward a more conservative profile, with 58% of deployed capital allocated to senior positions. This evolution increased exposure to senior, asset-backed structures and stable geographies, reinforcing the portfolio’s risk-return balance.
• YELDO expanded its product offering with the launch of two short-term investment solutions featuring quarterly coupons. The introduction of STEP 1 and STEP 2 enhanced portfolio diversification for investors while increasing flexibility in capital allocation.

KEY HIGHLIGHTS 2025

In 2025 we realized 14 exits, repaid EUR 62.2m and delivered a gross realized IRR of 12.9%.

We have built a resilient track record demonstrating solid performance. To date, despite some non-structural delays affecting a minimal portion of our portfolio, we have recorded a 0% default rate.

THE MACROECONOMIC LANDSCAPE IN 2025

Macroeconomic and Monetary Environment

In 2025, the euro area experienced stabilizing inflation and a steady monetary policy stance. Following the tightening cycle of previous years, the ECB kept policy rates broadly unchanged, as headline inflation approached the 2 % target. Energy and wage pressures moderated, allowing the Bank to focus on balancing price stability with moderate economic growth.

Impact on Market Predictability

The stable policy environment improved visibility on funding costs and credit conditions. Yield curves and credit spreads remained relatively steady, supporting more predictable financing and refinancing for borrowers and investors. This greater predictability enabled better planning across the real estate sector and reduced uncertainty for investment strategies.

Implications for Alternative Lenders

For European alternative lenders, the combination of stable rates and still-elevated yields supported solid portfolio performance and attractive risk-adjusted returns. The environment encouraged selective origination, disciplined underwriting, and active portfolio management, while lower refinancing risk improved cash flow predictability. Overall, 2025 provided a backdrop for measured growth and strong performance, reinforcing the strategic role of private credit in real estate finance.

YELDO TRACK RECORD

Our track record across geographies and asset classes

Since inception, we have invested in multiple geographies across different asset classes. 

Residential assets represent the core of our track record, accounting for 77% of capital deployed across exited and active transactions. The focus has been primarily on luxury residential projects (61%), which have historically proven to be among the most resilient asset classes across market cycles. Capital has also been selectively deployed into adjacent asset classes—such as hospitality and student housing/co-living—as well as logistics and commercial assets.

From a geographic standpoint, Italy represents the core of our track record, accounting for 58% of total capital deployed across executed transactions. The remaining activity reflects a diversified footprint across core European markets, including Switzerland—where deployed capital increased by approximately 30% since last year—as well as Spain, Principality of Monaco and Portugal.

Our exits and portfolio turnover

In 2025, we completed 14 exits, bringing total exits since inception to 30 and confirming our ability to actively manage and successfully conclude transactions. Over the same period, we executed 18 new deals, resulting in net growth of activity over the last 12 months. Overall, since inception we have executed 69 transactions in total, exited 30, and are currently managing 39 active deals diversified across geographies and asset classes.

Distributions and realized performance

In 2025, distributions to investors amounted to EUR 62.2m, generating a realized gross IRR of 12.9%, in line with performance delivered since inception. Overall, since inception, we have returned approximately EUR 122m to investors, maintaining a consistent gross IRR of 13.1% across market conditions.

From 2021 to 2025, distributions display an upward trajectory, reflecting the growing maturity and scale of the portfolio over time. Similarly, the realized gross IRR per year remains broadly consistent with the overall performance, indicating stable returns across years. The only exceptions are 2021 and 2022, early stages of the business which were not representative of the portfolio’s average performance.

Capital allocation and risk management

Prior to 2025, our investment activity was primarily focused on mezzanine positions, targeting attractive risk-adjusted returns for investors. While remaining committed to double-digit return targets, we have progressively expanded our positioning across the capital structure of new transactions, with an increasing allocation to senior tranches.

This strategic evolution has strengthened downside protection while limiting return compression. In 2025, senior positions accounted for approximately 58% of capital deployed, contributing to a reduction in mezzanine exposure from 54.2% at year-end 2024 to 47.3% at year-end 2025.

Despite the higher senior allocation, the expected weighted average gross IRR of 2025 investments is approximately 12.7%. Overall, the investment portfolio at year-end 2025 is expected to deliver a gross IRR of approximately 13.5%.

Product launch and portfolio flexibility

Our ambition is to offer investors a broad and flexible range of investment solutions. This is rooted in our deal-by-deal investment model, which allows investors to select individual opportunities based on geography, asset class, and the characteristics of the underlying asset.

To meet the needs of investors seeking broader diversification, we also provide access to a diversified private debt fund (EUR 29.2m of NAV as of 30/06/2025). In addition, since 2025 we have further expanded our offering with the launch of a short-term product (STEP), designed to balance diversification and duration. STEP provides exposure to a diversified real estate private debt portfolio with maturities ranging between 6 and 18 months, predictable cash flows through quarterly coupons, and a high single-digit return profile.

CONCLUSIONS 

Overall, our track record reflects a disciplined and resilient investment approach, combining consistent execution, active risk management, and product flexibility. Since inception, we have delivered stable double-digit gross returns while progressively strengthening downside protection through a more senior-oriented capital structure. The ability to successfully originate, manage, and exit transactions across geographies and asset classes, alongside a diversified product offering—from deal-by-deal investments to more diversified products such as the private debt fund and STEP—positions the platform to address evolving investor needs.

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