UK’s Digital Bank OakNorth Provides Subscription Line to Palamon, a Mid-Market Private Equity Firm

OakNorth, the digital bank for entrepreneurs, by entrepreneurs, has provided a subscription line to Palamon, a UK-based European mid-market private equity firm.

Palamon has deployed more than €2.5bn in mid-cap companies “since its inception in 1999, with a focus on financial services, business services, consumer and healthcare.”

Pursuing equity investments of €30m to €100m, the business has “made 44 investments across 12 countries over the last 25 years, with current investments including: MyDentist, Happy Socks, Redpin and The Rug Company.”

Authorized and regulated by the Financial Conduct Authority, Palamon uses its thematic investment strategy “to identify long-term growth trends and the most attractive market segments across Europe in which to capture.”

It then looks for quality business owners and entrepreneurial managers interested in partnering “with patient capital to capitalize on those trends, giving them unfettered professional support to accelerate their growth safely.”

Gary Pritchard, CFO of Palamon Capital Partners, commented:

“Since our inception, we have sought businesses from the primary market as we believe these companies present the most attractive opportunity to drive value creation through operational improvements and growth strategies. Over the last 25 years, we have demonstrated the effectiveness of our “top-down” thesis-led sourcing model, generating strong returns across dozens of investments. In a market dominated by financiers focused on £100m+ loans, it is refreshing to work with a lender that like us, has an appreciation and deep understanding of the lower mid-market. The team at OakNorth were pragmatic, entrepreneurial, and have in-depth knowledge of the fund finance space, which made the entire experience remarkably transparent and straightforward.”

Mohith Sondhi, Senior Director of Debt Finance at OakNorth, continued:

“Over the last several years, OakNorth has carved itself a niche in the fund finance market, providing optionality for funds seeking lower debt quantum from £3m up to £75m. We’re not a volume player – we want to find the right deals and structure them accordingly, working in partnership with the fund. Palamon has an established track record spanning 25 years, an experienced management team, and incredibly strong underlying investors. The business has always been disciplined in targeting chosen investments with quality management capable of taking advantage of clear open water ahead with favourable winds at their backs.”

Launched in September 2015, OakNorth says it is “the digital bank for entrepreneurs, by entrepreneurs, empowering scale-up businesses (£1m-£100m turnover) to support growth, prosperity, and innovation for the benefit of all.”

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