Yolo Investments launches $250 million Fund III in Abu Dhabi

Yolo Investments has launched Fund III, a $250 million investment vehicle authorized by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), with plans to back Series A to C companies in fintech, crypto, and gaming.

The fund carries a global investment mandate while concentrating on the Middle East and North Africa (MENA) region. Fund III is Yolo Investments’ third flagship fund and continues its strategy of investing in companies operating across payments, digital assets, and gaming.

The authorization from the FSRA allows the company to complete offering documents, including the limited partnership agreement and private placement memorandum, while preparing for capital deployment following the first close.

Yolo Investments said its decision to domicile Fund III in Abu Dhabi was tied to institutional investor demand for legal and regulatory systems based on English common law.

Chief Executive Tim Heath said the company’s move to Abu Dhabi was influenced by the jurisdiction’s legal framework, the FSRA’s regulatory approach, and access to 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 ADGM under a principles-based regulatory framework modeled closely on the British system. The regulator evaluates firms based on their activities and risk profile rather than strict compliance with detailed prescriptive rules.

Yolo Investments said this structure is suited to venture capital firms investing in sectors where business models and technologies continue to evolve. The company opened an office in Abu Dhabi in 2025 and relocated most of its investment team to the emirate as part of its UAE expansion plans.

The launch of Fund III follows Yolo Group’s move toward regulated gaming markets. The group previously announced a shift away from unregulated crypto activities and toward regulated iGaming operations.

“This isn’t about walking away from the past,” Yolo said in a statement at the time of the shift. “It’s about taking everything we’ve learned, everything we’ve pioneered, and applying it in environments where operators, regulators, and players can work together, creating a stronger and more sustainable ecosystem for everyone.”

Heath described the fund’s investment thesis as centered on “the movement of money.” 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.

Fund III follows the performance of Fund II, which, as of December 31, 2025, reported a net internal rate of return of 51.6% and a total value-to-paid-in capital multiple of 1.36x.

Fund II was structured as a Guernsey-registered limited partnership with a total size of €100 million (US $116 million). The fund included €50 million (US $58 million) from 23 external investors and a matching €50 million commitment from Yolo Group.

Portfolio companies backed through Fund II 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).

Alongside the launch of Fund III, Yolo Group expanded its UAE gaming operations late last year after receiving two gaming vendor licenses from the UAE’s General Commercial Gaming Regulatory Authority. The licenses permit Yolo to supply iGaming content to the regulated market in the UAE.

“Obtaining these licences in the UAE is more than a regulatory achievement,” Heath said. “It is a statement of intent. Yolo Group is committed to building the future of gaming on trust, transparency and world-class innovation.”