Palatine’s Growth Credit Fund strikes first deal

Palatine Growth Credit Fund has completed the first deal from its maiden Growth Credit Fund with a loan package for fast-growing, edge computing provider StorMagic.

The deal, which follows the fund’s final close in May, will support growth at the Bristol-headquartered business which enables organisations of all types and sizes to store, protect, and manage their data at and from the edge.

Founded in 2006, StorMagic positions itself as a lower cost alternative to VMware and Microsoft and has offices in the USA and Canada.

Primarily a mid-market private equity investor, the expansion to raise a debt fund for “maturing, high growth companies” in the UK regions. It is interested in opportunities in cyber, fintech, SaaS, healthtech, medtech, AI and advanced manufacturing sectors in the burgeoning technology ecosystems of the North, Midlands, South West, and the South East.

In February 2024, Palatine Growth Credit appointed experienced venture debt professional Ryan Sorby as Partner and Head of the North, joining Head of Growth Credit Will Chappel and Non-Exec Chair Neil Pitcher, the former CEO of European Venture Partners (now Kreos Capital). 

Will Chappel said: “StorMagic is a fantastic business with a meaningful USP and an impressive international client base. Having followed the business’ growth closely for some time, we are excited to welcome a best-in-class edge computing provider to the Fund at a time when innovative, secure and fast connectivity is becoming a business-critical factor for many organisations.”

Dan Beer

Dan Beer, Chief Executive Officer at StorMagic, said: “Since Broadcom’s acquisition of VMware, edge and SMB customers have seen massive price increases and many are looking for alternative solutions to help them run on-site applications reliably while reducing costs. SvHCI is the ideal replacement solution and can save SMBs and edge customers up to 62% over VMware alternatives.”