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Palatine picks up strong overseas interest in £150m Fund II final close

11 Jul 2013

pounds3_lrgUK-based regional private equity firm Palatine Private Equity has held a £150m final close for its second fund thanks to strong overseas support.

About 55 per cent of commitments to the vehicle were from non-UK LPs, with £100m coming from existing backers and £50m from new investors.

Those new faces included GE Pension Trust, Nippon Life, a large German based insurance company and a London-based family office.

Palatine said it plans to invest between £10m and £25m of equity in regional lower mid-market deals.

The final close of Fund II follows the success of Palatine’s first fund, which closed on £100m in 2007.

It 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’s successful fundraise will have been boosted by two exits in particular, having gained a 4.5 times return selling XLN Telecom in 2010 and three times return selling Air Energi in 2012.

The firm has completed two deals so far from Fund II – the management buyout of amusement and leisure machines supplier Playnation and an investment into private medical insurance specialist Chase Templeton.

Both transactions were completed in February 2013.

Palatine managing partner Gary Tipper said, “We are delighted to announce the final closing of our second fund at the hard cap of £150m.

“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.”

In April the firm hired Andy Lees as a partner from UK banking group Barclays, where most recently he led the large corporate team across the North West of England.

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