DEBT investor Palio Capital Partners, headed by former Gresham Private Equity managing director Michael Henebery, yesterday unveiled plans to float a fund in London aimed at tapping debt-starved small and medium sized enterprises.
Palio UK Mid-Market Debt Fund is seeking to raise more than £150m from investors for the fund, which is set to list on the Specialist Fund Market of the LSE and the Channel Islands Stock Exchange.
The fund will provide senior and mezzanine debt to companies in the UK lower mid market.
Henebery will draw on his private equity background at Gresham, where he worked until 2009, to work alongside private equity houses to select SMEs with enterprise values of between £10m and £100m to invest in.
Henebery said the fund would provide SMEs “greater choice” to access loans.
The company said its portfolio would comprise 50 per cent of senior debt commitments, 40 per cent of mezzanine debts and 10 per cent of junior equity.
The issue is being led by Oriel Securities.