Palatine partner Beth Houghton
Palatine partner Beth Houghton

Palatine Private Equity has raised £50m towards its first impact investment fund, Real Deals has learned.

The firm reached a first close in December after ten weeks on the road. It is targeting £75m, with a hard cap set at £100m. It is understood that Palatine expects to close the fund in H1 2017 and will make equity investments of less than £10m.

The vehicle will be led by partner Beth Houghton with support from fellow partner Zoe Clements. Clements joined the firm’s London office from Epiris (formerly Electra Partners) in November. Tim Farazmand, former BVCA chairman and LDC adviser, will chair the fund.

Palatine partner Zoe Clements
Palatine partner Zoe Clements

Investors who have already committed to the fund are understood to include existing Palatine backers as well as new UK corporate and public pension funds.

Palatine closed its third flagship fund in June 2015, raising £220m. The firm has offices in Manchester, London and Birmingham.

Evercore, which worked on the previous raise, is serving as placement agent.