Private equity firm holds first close of £125m on second Impact Fund

Beth Houghton, Palatine

Mid-market private equity firm Palatine has held a first close of £125m on its second Impact Fund, it has been reported.

According to market sources several investors are believed to be in final due diligence which could take the amount raised to over £150m.

That would represent a 50% uplift on Palatine’s first Impact Fund, which closed at £100m in 2017.

The Fund is headed by partner Beth Houghton and invests £5m to £10m in companies that are tackling issues such as ‘inequalities in education and jobs across UK regions, access to healthcare and climate change.’

Palatine is understood to be targeting a £200m final close by the end of 2022.

The Impact Fund supports management teams not only in their ‘growth ambitions, but also in their impact strategies as well.’

The first Fund has backed firms including Cura Terrae, a Sheffield-based environmental services group employing about 240 staff.

It has also backed Manchester-based Back2Work Group which specialises in delivering intensive training courses to help the long-term unemployed return to work, retrain or re-skill as well as global sustainability specialist, Anthesis Group.

Palatine declined to comment.