Palantine Private Equity LLP has closed its third fund at a hard cap of 220 million pounds. Fund III’s limited partners include UK, European, North American and Asian public and private pension plans, insurance companies, funds of funds, family offices and high-net worth individuals. Evercore Private Funds Group served as the placement agent.
Manchester — June 24, 2015. UK regional lower middle market private equity firm, Palatine Private Equity LLP, has announced the First and Final Close of Palatine Private Equity Fund III LP at its hard-cap of £220 million, exceeding the size of Palatine’s second fund, which raised £150 million in 2013. Evercore Private Funds Group acted as the exclusive global placement agent for the fundraise.
Fund III launched and closed in just eleven weeks and was significantly oversubscribed, attracting commitments from a globally diverse group of investors including UK, European, N. American and Asian public and private pension plans, insurance companies, funds of funds, family offices and high net worth individuals.
The final close of Fund III follows the success of Palatine Private Equity Fund II LP, which is fully invested having completed ten platform investments including the buyout of John Charcol and Towergate Financial Planning, now rebranded as Wren Sterling; the secondary buyout of Character World, the UK’s leading licensed bedding specialist; and the buyout of WHP, a service provider to the mobile telecoms sector.
Palatine was founded in 2005 and raised its maiden £100m fund in 2007, which has generated market-leading returns, including XLN Telecom (4.5x return), Air Energi (3x return) and Hallmark Hotels (2x return).
Gary Tipper, managing partner of Palatine Private Equity, said: “We appreciate the continued support from our existing investors and the vote of confidence from our new partners. Almost 100% of existing investors re-committed with nearly all increasing their commitment size. We are similarly delighted to have attracted five new LPs to join our high calibre and geographically diverse investor base.
“We are very excited about the potential for Fund III and look forward to continuing our focus on providing a Partner led approach to deals in the UK regional lower mid-market. We could have raised a significantly larger fund given the level of interest from investors, but we resisted that temptation, so we can continue to focus on our existing market space where we believe there is significantly less competition.”
Richard Anthony, CEO of Evercore’s Private Funds Group, added: “We are thrilled with how this fundraise has played out. The sheer level of investor interest and moreover, their willingness to move quickly to secure an allocation is undoubtedly a testament to the strength and quality of the Palatine team and track record.”
Fund III will continue Palatine’s investment strategy of providing a partner led approach to deals in the UK regional lower middle market.
Richard Anthony, Alexander Rayden, Meredith Bourne, Anisa Javeri and Christopher Mockford of Evercore Private Funds Group acted as Global Placement Agent. Kate Downey, Mateja Maher, Suzannah Hacking and Sarah Dillon of Kirkland & Ellis International acted as Legal Advisor to Palatine Private Equity.
About Palatine Private Equity: Palatine Private Equity is an entrepreneurial, Partner led private equity business with a focus on backing like-minded people in the UK regional lower middle market. The Partners have over 60 years’ experience working with entrepreneurs and management teams in private equity backed businesses. Founded in 2005, Palatine raised its maiden £100m fund in 2007. This is now fully invested and has generated market-leading returns, including XLN Telecom (4.5x return), Air Energi (3x return) and Hallmark Hotels (2x return). The firm raised its second generation fund in 2013 achieving its target size of £150m. Fund II, which is now fully invested, comprises portfolio companies including Chase Templeton, Playnation, Gusto Restaurants, Wren Sterling/ John Charcol and most recently
The Alchemist bar/restaurant chain. Palatine’s portfolio also includes MJ Quinn, Electranet, MoneyPlus Group, Wealth at Work, Selection Services, EPI Group, icelolly.com and Forrest.
About Evercore: Evercore is a leading independent investment banking advisory firm. Evercore’s Investment Banking business advises its clients on mergers, acquisitions, divestitures, restructurings, financings, public offerings, private placements and other strategic transactions and also provides institutional investors with high quality equity research, sales and trading execution that is free of the conflicts created by proprietary activities. Evercore’s Investment Management business comprises wealth management, institutional asset management and private equity investing. Evercore serves a diverse set of clients around the world from 20 offices in North America, Europe, South America and Asia. More information about Evercore can be found on the Company’s website at www.evercore.com.