Yolo Investments has received authorisation from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market to manage Fund III, its third and largest fund, targeting a raise of $250m.
The FSRA granted authorisation on 19 May 2026, following months of work across the firm’s legal, compliance and operations functions. Fund III will target Series A to C rounds across fintech, crypto and gaming, with a global mandate and a stated concentration on MENA.
Abu Dhabi as a deliberate choice
Tim Heath, general partner at Yolo Investments, said the selection of Abu Dhabi Global Market as domicile was driven by regulatory and capital considerations rather than convenience.
Abu Dhabi was a deliberate choice: 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 is now a prerequisite for institutional allocators, and Abu Dhabi clears all three bars.
The move reflects a broader trend of iGaming-adjacent investment firms gravitating toward Gulf financial centres, where institutional LP bases are deepening and regulatory frameworks have matured rapidly. Yolo Group, the operating entity separate from Yolo Investments, secured UAE gaming vendor licences from the GCGRA in late 2025, a signal that the broader Yolo ecosystem has been building UAE-based infrastructure for some time.
Heath frames the three sectors targeted by Fund III as converging rather than parallel, with portfolio companies across fintech, gaming and crypto intended to generate commercial relationships with each other.
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.
Fund II performance underpins the raise
Fund III launches against a reported performance track record from its predecessor. The announcement cites Fund II’s net IRR of 51.6% and TVPI of 1.36x as of 31 December 2025.
Net IRR measures the annualised return generated after fees. TVPI, or total value to paid-in capital, measures the combined realised and unrealised value returned relative to capital invested. A TVPI of 1.36x means investors have seen $1.36 in combined value for every $1 contributed. The figures have not been independently verified.
The firm says it is finalising the LPA, PPM and subscription documents, onboarding committed LPs, with deployment beginning upon first close.
Background and AUM
Yolo Investments was founded in 2017 by Tim Heath, originally operating as Vereeni Investments, and has built a portfolio across fintech, gaming, crypto and blockchain. Heath’s background includes founding Bitcasino.io and Sportsbet.io, a crypto sportsbook that held partnership agreements with Arsenal and Newcastle United.
The firm reports assets under management of more than $750m across its funds and a portfolio of more than 70 businesses. Yolo Group, the operating parent, announced a strategic pivot toward fully regulated markets in late 2023, consolidating its brands under the yolo.com identity.
With FSRA authorisation confirmed, the firm’s LP base and deployment geography are expected to carry a significant MENA weighting. The size of Fund III at $250m represents a step up from its predecessor, and the ADGM domicile positions it to access sovereign and institutional allocators in the Gulf that have so far been underrepresented in iGaming-adjacent venture capital.
Source: Yolo Investments
