The Palatine Growth Credit Fund has made its first significant move by finalising a loan package for StorMagic, an edge computing company based in Bristol. This early milestone, following the fund’s closing in May, is crucial for StorMagic’s growth trajectory. The Bristol-based firm specialises in helping organisations manage and safeguard their data effectively.
Founded in 2006, StorMagic has established itself as a lower-cost alternative to major players like VMware and Microsoft, with offices in the USA and Canada. Traditionally a mid-market private equity investor, Palatine has broadened its operations to support high-growth companies through debt funding. The fund focuses on sectors such as cyber, fintech, SaaS, healthtech, medtech, AI, and advanced manufacturing, all flourishing in various UK regions.
First Deal by Palatine’s Growth Credit Fund
The Palatine Growth Credit Fund has successfully executed its inaugural deal, finalising a loan package for StorMagic, a rapidly expanding edge computing company situated in Bristol. This milestone comes after the fund’s closing in May and is expected to drive StorMagic’s growth. The Bristol-based enterprise assists organisations in safeguarding and managing their data efficiently.
Founded in 2006, StorMagic offers a cost-effective solution to VMware and Microsoft. The company operates offices in the USA and Canada. Palatine has traditionally been a mid-market private equity investor, but it has expanded its scope to support maturing, high-growth companies through debt funding.
The fund targets sectors like cyber, fintech, SaaS, healthtech, medtech, AI, and advanced manufacturing. These industries are flourishing in various UK regions, including the North, Midlands, South West, and South East. This deal exemplifies Palatine’s commitment to these growing sectors, leveraging its financial resources to foster innovation and competitiveness.
Leadership and Vision
Earlier this year, Palatine Growth Credit added Ryan Sorby, an experienced venture debt professional, as Partner and Head of the North. He joined Will Chappel, Head of Growth Credit, and Neil Pitcher, Non-Exec Chair and former CEO of European Venture Partners. This leadership team brings a wealth of experience and industry knowledge.
Sorby and his team aim to identify and support companies poised for substantial growth. According to Will Chappel, “StorMagic is a fantastic business with a meaningful USP and an impressive international client base.” He highlighted that their investment would amplify StorMagic’s capabilities, especially as secure and fast connectivity becomes crucial for businesses.
StorMagic’s Strategic Position
Dan Beer, CEO of StorMagic, pointed out that customers seek alternatives due to VMware’s price hikes. He noted, “Since Broadcom’s acquisition of VMware, edge and SMB customers have seen massive price increases.” Beer’s insights underscore the urgency for cost-effective solutions like SvHCI which StorMagic provides.
StorMagic’s strategic outlook aims to deliver reliable solutions for on-site applications, helping businesses cut costs by up to 62% over VMware alternatives.
StorMagic’s ability to offer substantial savings and reliability has cemented its position as an attractive option for small and mid-sized businesses. The collaboration with Palatine is poised to further StorMagic’s mission of providing accessible edge computing solutions.
Palatine’s Broader Objectives
Palatine’s strategy extends beyond mere financial support. The organisation seeks to be a pivotal player in the growth of technology ecosystems across the UK, targeting sectors that hold substantial promise.
By focusing on innovative solutions and high-growth companies, Palatine aims to drive advancements in various sectors. This includes fostering developments in cyber technology, financial technology, and artificial intelligence, all crucial for the UK’s economic future.
Future Prospects
The collaboration between Palatine and StorMagic heralds a new phase of growth for both parties. The deal sets a precedent for Palatine’s future investments, highlighting the firm’s dedication to supporting innovative companies.
As StorMagic continues to expand, it is expected to attract more clients globally, further solidifying its market position.
The success of this initial deal will likely encourage Palatine to seek additional opportunities in other promising sectors, fortifying its role as a key player in the UK’s technology landscape.
The partnership between Palatine and StorMagic marks a significant step forward for both entities. StorMagic is set to benefit from Palatine’s financial support, which will enhance its edge computing solutions, making data management easier and more efficient for businesses. Meanwhile, Palatine solidifies its role as a key player in the UK’s burgeoning technology sector. As this initial deal proves fruitful, it paves the way for more investments in high-growth technology sectors across the UK, reinforcing Palatine’s commitment to driving innovation and economic growth.
