£75m first close for fund aimed at maturing, high growth companies

Manchester-based Palatine Growth Credit Fund has reached a first close at £75m.

The fund is aimed at backing high-growth technology companies in the UK regions.

Experienced venture debt professional, Ryan Sorby, has been appointed as a Partner.

Partner Will Chappel leads the strategy, with the new fund to begin investing in the next few months, amid strong demand from B2B-focused companies, including fast-growing tech firms.

Among the investors in the new Growth Credit Fund are British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, and a number of local authority pension funds.

The Palatine Growth Credit Fund will support maturing, high growth, but not start-up, companies which are seeing strong year-on-year revenue growth.

The Fund will lend to companies in the 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.

Will Chappel, who has previously launched three successful Growth Credit strategies in the UK and worked for Barclays, Shawbrook and HSBC, said: “In what has been a challenging market for new fund raisings, we are delighted for the fund to have reached a strong first close.

“We are looking forward to a very active 2024 as the Growth Credit Fund makes its first investments and continues to grow the team alongside myself and Ryan, who brings an outstanding track record and long standing relationships in the North West and Yorkshire markets.”

He added: “Despite much documented economic headwinds, we know there is very strong market demand for funding to help established businesses accelerate their growth.”

Ryan Sorby, who has more than 25 years’ experience working with small and medium-sized businesses, first as an adviser and more recently as a lender with Lloyds Banking Group and Boost&Co, said: “I am incredibly excited to join Palatine Growth Credit, which is a unique offering in the regional debt market.

“We see enormous potential and appetite in the North of England and the Midlands, where there are many exciting tech companies coming to the fore, looking to scale at pace.”

Adam Kelly, Managing Director, British Business Investments, said: “At British Business Investments, our mission is to improve access to alternative finance for smaller businesses across the UK. Our commitment to the Growth Credit Fund will help more UK smaller businesses, particularly in the North, Midlands, South West and South East, to access the capital they need to grow and succeed.’’

Palatine Growth Credit, as part of the wider Palatine Group, sits alongside the sustainably-driven established Buyout and Impact funds and private equity funds.