Palatine Private Equity, a Manchester-based GP, has held a final close on its second fund, reaching its £150 million hard-cap.
The firm had a re-up rate of nearly 100 percent, according to a statement. Its first fund raised £100 million in 2007.
Palatine collected £100 million from existing investors, while £50 million came from new LPs including the GE Pension Trust in the US, Nippon Life Insurance in Japan, a German insurance company and a family office from London.
Palatine’s latest vehicle will invest in companies with enterprise values of up to £50 million in the UK’s regional lower mid-market. It typically invests between £10 million and £25 million of equity per deal.
Originally established as Zeus Private Equity in 2005, Palatine has offices in Manchester, London and Bristol. It was rebranded as Palatine in 2011 and is led by Gary Tipper, Ed Fazakerely and Tony Dickin, along with Andy Lees, who joined earlier this year.
Prior to coming to the market, Palatine divested two businesses from the nine investments in its debut fund. Last year, it divested Air Energi, a provider of technical expertise to the global oil and gas sector, delivering a 3x return. In 2010, Palatine sold telecommunications provider XLN Telecom, which netted a 4.5x return.
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
Tipper, managing partner, said in the statement the firm was “delighted” to reach its hard-cap. The fact that almost all investors re-upped “is a clear testament to the performance of the first fund during a difficult time for the industry”, he said. “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,” he added.
So far, Palatine has made two investments from its latest fund. In February, the firm acquired Playnation, a UK supplier of amusement and leisure machines. It also invested in private medical insurance specialist Chase Templeton.
Some LPs in Fund II include: Greater Manchester Pension Fund, New York State Common Retirement Fund, South Yorkshire Pension Fund Authority and West Yorkshire Pension Fund, according to PEI’s Research & Analytics team. LPs in the firm’s first fund included: Access Capital Partners, Co-Operative Insurance Society, Greater Manchester Pension Fund, Hermes GPE, South Yorkshire Pension Fund Authority and West Yorkshire Pension Fund Authority.