Palatine has made a significant move in the Northern fintech sector by backing a Manchester-based company with a £2 million loan. This investment comes from Palatine’s innovative Growth Credit Fund and marks its Northern debut.
The funding has been directed at Voly Group, a high-growth fintech business, to support a strategic acquisition. This development signals a notable advancement in the fintech landscape of Manchester and highlights Palatine’s commitment to regional growth.
Strategic Acquisition and Expansion
Voly Group, headquartered in Cheadle, has received a substantial £2 million loan from Palatine’s Growth Credit Fund. This financial backing is aimed at facilitating Voly’s acquisition of Voyonic, a specialist maritime payroll provider. This acquisition will enhance Voly’s Software as a Service (SaaS) offering by integrating multi-jurisdiction payroll capabilities.
Established in 2016 by former professional tennis player Ian Flanagan, Voly has rapidly ascended to become the market leader in financial management for the yachting sector. The company’s software enables superyacht captains, crew, and owners to manage operational expenses and maintenance efficiently. The integration of Voyonic will bolster Voly’s position as a top-tier financial management platform.
Innovation in Financial Management
Voly’s financial management software is renowned for its ability to conduct instant global transactions supported by transparent, real-time reporting. This feature is particularly valuable in the international luxury yacht industry, where precise management of operational expenditure is crucial.
The acquisition of Voyonic not only adds to Voly’s comprehensive suite of services but also underscores its commitment to providing best-in-class solutions. The company is continuously on the lookout for top-tier products that can be integrated into its growing platform.
Palatine’s Role and Vision
The Palatine Growth Credit Fund is designed to support maturing, high-growth companies across the UK. This fund aims to address the imbalance in growth capital availability in UK regions, ensuring that companies like Voly have the financial backing needed to scale effectively.
Ryan Sorby, partner at Palatine Growth Credit, expressed his enthusiasm for the deal, stating, “Voly is a genuine market leader with a unique product, a highly impressive founder, and strong backing from its equity sponsors. Ian and his team have achieved very exciting growth to date, and the acquisition of Voyonic adds yet more value to Voly’s best-in-class proposition.”
This deal is especially significant as it is the first Northern investment by the Palatine Growth Credit team, following their earlier engagement with Bristol’s edge computing company, StorMagic.
Growth and Market Leadership
Voly Group’s growth trajectory has been impressive, with significant milestones achieved since its inception. The company employs around 100 staff across its headquarters in Cheadle and various locations in the UK and Europe.
The 2021 private equity investment from Magenta Partners has further fueled Voly’s expansion efforts, providing additional resources to enhance its platform and services.
Future Prospects and Developments
Voly’s clear strategic direction involves creating the industry standard ERP solution for the yachting sector. This strategy includes both the development of new products and the acquisition of complementary solutions that can be seamlessly integrated into its existing offerings.
The integration of Voyonic is a crucial step in this strategy, enhancing Voly’s multi-asset financial management capabilities and providing added value to its clients.
Ian Flanagan stated, “With the support of the Palatine Growth Credit Fund, the acquisition and integration of Voyonic into Voly Group will create more benefits for superyacht owners, further cementing our position as the leading management platform in the sector.”
Palatine’s Commitment to Sustainable Growth
Palatine is committed to delivering returns through sustainable growth, focusing on building solid foundations with a commitment to the environment and society. This approach aligns with their investment in Voly, supporting both financial growth and responsible business practices.
Headquartered in Manchester, Palatine also has offices in London and Birmingham, positioning itself as a significant player in the UK mid-market private equity landscape.
Industry Impact
This investment by Palatine in Voly is more than a financial transaction; it represents a strategic partnership aimed at fostering innovation and growth in the fintech sector. Voly’s enhanced capabilities post-acquisition will contribute significantly to the financial management needs of the luxury yacht industry.
The £2 million investment by Palatine in Voly Group is a strategic move that underscores the growth potential of the Northern fintech sector. This funding will facilitate Voly’s acquisition and integration of Voyonic, enhancing its position as a market leader.
Palatine’s commitment to supporting high-growth companies through its Growth Credit Fund is evident in this deal, promising further advancements and sustained growth in the fintech landscape.
