Yolo Investments launches $250m Fund III under Abu Dhabi licence
Yolo Investments has announced the launch of Fund III, its third flagship investment vehicle authorised by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi on 19 May 2026. The fund is seeking to raise $250m to support Series A-C start-ups in the fintech, crypto and gaming sectors, and has a global mandate with a strategic focus on the Middle East and North Africa (MENA) region.
Why Abu Dhabi
The choice of jurisdiction reflects the firm’s broader commitment to the UAE. In 2025, Yolo Investments opened an office in Abu Dhabi and relocated most of its investment team there.
Chief executive Tim Heath cited three factors behind the decision: the application of English common law, the FSRA’s business-oriented and principles-based regulatory approach, and direct access to one of the world’s largest pools of institutional capital. “Being regulated in the same jurisdiction as our LPs is now a prerequisite for institutional allocators, and Abu Dhabi clears all the necessary criteria,” Heath said.
The FSRA operates within the Abu Dhabi Global Market (ADGM) international financial centre and follows a regulatory model close to the British approach. Under this framework, the regulator sets objectives and expected standards of conduct, leaving firms to determine how to achieve them, unlike the continental model, where market participants operate under detailed, prescriptive rules.
In practice, the regulator looks at a firm’s actual activities and risk profile rather than whether it has followed specific rules. This is important for venture funds that support new and changing sectors. New business models may not always align with existing regulations, but they may still comply with the spirit of those regulations. The use of English common law also provides a familiar legal framework for institutional investors. This reduces uncertainty in the legal process regarding deal structuring and dispute resolution.
Alongside launching the fund, Yolo Group has further expanded its presence in the UAE: the company has received two gaming vendor licences from the General Commercial Gaming Regulatory Authority (GCGRA), enabling it to supply iGaming content to the UAE’s regulated market.
The founder’s thesis: money in motion
Heath describes the fund’s core concept as ‘the movement of money’. In practice, the fintech companies in the portfolio provide payment infrastructure for gaming projects, and gaming operators act as anchor customers for fintech and crypto companies. ”Built over a decade of active portfolio management, this ecosystem has become a competitive advantage for founders,” said Heath.
Track record
Fund III builds on a strong performance from its predecessor. As of 31 December 2025, Fund II delivered a net internal rate of return (IRR) of 51.6 per cent and a total value to paid-in capital (TVPI) multiple of 1.36x.
Fund II was structured as a Guernsey-registered limited partnership with a total size of €100m: €50m raised from 23 external investors and a matching €50m commitment from Yolo Group itself. Portfolio companies include Dabble (social betting), Boomfi (crypto-fiat payments gateway), CoinMENA (digital assets exchange), Kraken (crypto exchange), Syfe (investment platform) and Mesh (open banking infrastructure for the crypto industry).
The fund recorded its first significant exit in December 2025, when the Turkish platform Paribu acquired CoinMENA in a deal worth up to $240m. Yolo Investments had initially backed CoinMENA in early 2024. At the time of the transaction, the platform had over 1.5 million users in more than 45 countries and offered access to over 50 cryptocurrencies.
What comes next
By the start of 2026, Fund II had been almost fully deployed, with three further deals planned for the first half of the year, after which the company will shift its focus towards portfolio growth and exit opportunities. For Fund III, the firm is finalising subscription documents and beginning the process of onboarding limited partners. Capital deployment is expected to begin immediately after the first close.
This article was first published in Russian on 26 May 2026.
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