Palatine, the Manchester-based, regionally focused, sustainably driven investor, has successfully raised its largest-ever fund, closing Buyout Fund V at £254 million.
The firm, whose recent investments include Manchester fintech Voly Group and digital transformation business 01T, beat its target for the fundraise and achieved a re-up rate of well in excess of 100% based on capital raised from existing investors. Palatine attracted a number of new investors across Europe to complement existing investors from the UK, the Nordics and the USA.
Co-founder and group managing partner Gary Tipper said: “Given a challenging fund-raising environment we are extremely pleased to have raised our largest-ever fund quickly and above target. This success is a testament to the team’s ability to consistently generate strong returns including the recent exits of Anthesis, NRG Riverside and DTM.
“It’s very pleasing to see such a strong re-up rate and, after a difficult period post Brexit for fund-raising in Europe, to welcome several new EU-based LPs to our UK-focused fund. As ever we are extremely grateful to our existing investors for their continued support.”
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Palatine’s Buyout Fund invests up to £50m into established, profitable and predominantly regional companies in the lower mid-market focused primarily in three core sectors: business services, technology and financial services.
Palatine, which is a B-Corp, “believes that private equity investment done the right way is a force for good.” Focused on achieving strong, sustainable returns, the firm’s investment strategy is founded on its regional focus from its Manchester head office and is underpinned by three core elements: ESG; backing businesses with a strong M&A strategy and those with scope for operational improvement.
Tipper added: “Our investment in our internal value enhancement and sustainability teams is another differentiator alongside our regional focus. Our approach for Buyout Fund V will not change, nor will our commitment to investing in our people and building great partnerships with management teams. We look forward to the future with confidence.”
Buyout is the most mature of Palatine’s three current strategies, which also include the pioneering Impact Fund with Palatine currently investing from its second Impact Fund, and most recently its Growth Credit Fund, a venture debt offering supporting the regional tech funding ecosystem.
Recent investments from the Buyout Fund IV include Bluprintx, an internationally focused digital services company and Midlands-based accountancy group BK Plus, which has made 15 acquisitions as part of its buy and build strategy since Palatine invested.
Palatine was supported on the fundraising by the London and New York teams of placement agent Harris Williams with legal advice provided by Fried, Frank, Harris, Shriver & Jacobson (London) LLP.
