Private equity investor Palatine has launched a new fund to back fast-growth B2B companies in sectors such as AI, SaaS, cyber and FinTech throughout the UK.
The Palatine Growth Credit Fund will be headed by experienced tech fund manager Will Chappel (ex-Barclays, HSBC and Shawbrook), who has joined the business as a partner.
Palatine has also recruited Neil Pitcher, the former CEO of European Venture Partners (now Kreos Capital) and ETV Capital, to be the non-exec chair for the fund.
Pitcher has more than 25 years’ experience in the sector and currently runs LGF Partners – a boutique debt advisory business focusing on growth businesses which and has raised over $1bn for clients.
The Palatine Growth Credit Fund will support maturing, high growth, but not start-up, companies which are seeing double-digit 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.
Gary Tipper, managing partner at Palatine, said: “We are excited to launch our new Growth Credit Fund to support an ever-increasing number of ambitious and innovative tech businesses based outside of London.
“The UK regions are already home to some outstanding tech businesses – in 2022 tech business in Manchester alone raised a record £532m, more than many major European capitals including Rome, Brussels, Warsaw and Lisbon.
“We are confident that founders and executives looking for finance to support their growth plans without having to dilute their equity will welcome this new offer from a team with decades of success in backing high growth enterprises.
“As a business Palatine has never stood still – our early adoption of ESG into our PE funds and the raising of our two Impact Funds is a testament to this. Our Growth Credit strategy adds a third string to our bow and enhances our ability to support an increasingly important part of the economy.”
Chappel said: “I am thrilled to have joined the business to launch a market-unique and compelling offer which will make a significant contribution to levelling-up the Growth Credit market across the regions in the UK.
“The established tech funding landscape is still skewed towards the South, and we feel it’s never been a better time to enter the market, particularly also as the regions have been underserved in this asset class in recent years.
“We already have a strong pipeline of leads across the North and beyond, thanks to our combined relationships with advisors and VCs working with technology businesses. I am looking forward to building a dedicated team at Palatine in the months ahead.”
Founded in 2005 by partners Gary Tipper, Ed Fazakerley and Tony Dickin, Palatine has successfully raised four buyout funds.
Headquartered in Manchester, Palatine also has offices in London and Birmingham.