Manchester-based private equity firm Palatine said it has successfully raised its largest-ever fund, closing Buyout Fund V at £254 million.

Palatine attracted a number of new investors across Europe to complement existing investors from the UK, the Nordics and the US.

Palatine’s Buyout Fund invests between £10 million and £50 million into established, profitable and predominantly regional companies in the lower mid-market focused primarily in three core sectors: business services, technology and financial services.

“Palatine, which is a B-Corp, believes that private equity investment done the right way is a force for good,” said the firm.

“Focused on achieving strong, sustainable returns, the firm’s investment strategy is founded on its regional focus from its Manchester head office and is underpinned by three core elements: ESG; backing businesses with a strong M&A strategy and those with scope for operational improvement.”

Palatine co-founder and managing partner Gary Tipper said: “Given a challenging fund-raising environment we are extremely pleased to have raised our largest-ever fund quickly and above target.

“This success is a testament to the team’s ability to consistently generate strong returns including the recent exits of Anthesis, NRG Riversideand DTM.

“It’s very pleasing to see such a strong re-up rate and, after a difficult period post Brexit for fund-raising in Europe, to welcome several new EU-based LPs to our UK-focused fund. As ever we are extremely grateful to our existing investors for their continued support …

“Our investment in our internal value enhancement and sustainability teams is another differentiator alongside our regional focus. Our approach for Buyout Fund V will not change, nor will our commitment to investing in our people and building great partnerships with management teams. We look forward to the future with confidence.”

Palatine said buyout is the most mature of its three strategies, which also include its Impact Fund and a Growth Credit Fund, a venture debt offering for the regional tech funding ecosystem.