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Palatine closes Fund II at GBP150m

Palatine Private Equity, the Manchester based regional private equity firm, has held the final close of its second fund at its hard cap of GBP150m, with 55 per cent of commitments coming from overseas investors.

Fund II consists of GBP100m from existing investors and GBP50m from new investors. New investors include GE Pension Trust (US), Nippon Life (Japan), a large German based insurance company and a family office based in London.
Palatine is looking to invest between GBP10m and GBP25m of equity in regional lower mid-market deals. The firm will continue to focus on providing a hands-on partner-led approach.
The firm, which has offices in Manchester, London and Bristol, is led by partners Gary Tipper, Ed Fazakerely and Tony Dickin, who founded the business in 2005, along with partner Andy Lees, who joined earlier this year.
The final close of Fund II follows Palatine’s first fund, which closed at GBP100m in 2007. The firm made nine investments out of the first fund, including the buyout of financial services provider MoneyPlus Group, the secondary buyout of Wealth at Work and the buy-and-build acquisition of boutique hotel chain Hallmark Hotels.
Palatine has realised two investments to date from their first fund. It exited telecommunications provider XLN Telecom in 2010, delivering a 4.5x return to investors, and in 2012 exited Air Energi, a provider of technical expertise to the global oil and gas sector, delivering a 3x return in just over three years.
Gary Tipper, managing partner at Palatine Private Equity, says: “We are delighted to announce the final closing of our second fund at the hard cap of GBP150m. Almost 100 per cent of the investors in our first fund reinvested this time around, which is a clear testament to the performance of the first fund during a difficult time for the industry.
“We are also really pleased to have attracted commitments from several new blue-chip investors which has effectively expanded the geographical reach of our investor base. The new fund will enable us to continue our focus on providing a partner-led approach to deals in the regional lower mid-market.”
Palatine has completed two deals so far from Fund II: the management buyout of Playnation, a UK based supplier of amusement and leisure machines, and the investment into private medical insurance specialist Chase Templeton. Both transactions were completed in February 2013.

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