Palatine fund hits £50m

MANCHESTER-based Palatine Private Equity’s first impact investment fund has reached first close, TheBusinessDesk has learned.

The mid-market firm, which also has offices in Birmingham and London,  reached first close on the fund at £50m in December – around 10 weeks after starting the fundraising process, a source close to the situation told TheBusinessDesk.

Those to have signed up so far include UK pension funds and existing Palatine investors.

The final target is £75m, with a cap set at £100m, and final close expected in the first half of 2017.

Led by Manchester partner Beth Houghton with support from Zoe Clements, a recent hire to the firm’s London office, the fund will make investments of up to £10m.

Tim Farazmand, former BVCA chairman and LDC adviser, will chair the fund.

In June 2015, Palatine closed its third and biggest-ever fund, having raised £220m in just 11 weeks.

Palatine was founded in 2005 and raised its maiden £100m fund in 2007. Since then it has invested £260m in 23 companies.

Palatine said that it could not comment on the impact investment fund as it is still in the process of fundraising.