Palatine Growth Backs Bristol-Headquartered International Edge Computing Provider

Palatine Growth Credit Fund has completed the first transaction from its maiden Growth Credit Fund with a significant investment to back fast-growing, edge computing provider StorMagic.

The deal, which follows the fund’s final close in May, will support growth at the Bristol-headquartered business which enables organisations of all types and sizes to store, protect, and manage their data at and from the edge. StorMagic recently introduced SvHCI, a full-stack software solution that can save customers significant costs over VMware and Microsoft.

Palatine believes StorMagic is well-suited to capitalise on new market conditions and the fund has invested in StorMagic aiming to accelerate its growth.

Founded in 2006, StorMagic has thousands of clients around the world and has offices in the USA and Canada.

The Palatine Growth Credit Fund has been raised to support maturing, high growth companies in the UK regions which are seeing strong year-on-year revenue growth.

The Fund lends to companies in the cyber, fintech, SaaS, healthtech, medtech, AI and advanced manufacturing sectors in the burgeoning technology ecosystems of the North, Midlands, South West, and the South East.

In February 2024, Palatine Growth Credit appointed experienced venture debt professional Ryan Sorby as Partner and Head of the North, joining Head of Growth Credit Will Chappel and Non-Exec Chair Neil Pitcher, the former CEO of European Venture Partners (now Kreos Capital).

Will Chappel said “We are thrilled to have reached the successful final close of the Growth Credit Fund and to now be supporting those UK regions which have been historically underserved in this asset class.

“StorMagic is a fantastic business with a meaningful USP and an impressive international client base. Having followed the business’ growth closely for some time, we are excited to welcome a best-in-class edge computing provider to the Fund at a time when innovative, secure and fast connectivity is becoming a business-critical factor for many organisations.”

Dan Beer, Chief Executive Officer at StorMagic, said: “StorMagic is thrilled to have Palatine’s support as the company recently entered a new market segment with the introduction of SvHCI. Since Broadcom’s acquisition of VMware, edge and SMB customers have seen massive price increases and many are looking for alternative solutions to help them run on-site applications reliably while reducing costs. SvHCI is the ideal replacement solution and can save SMBs and edge customers up to 62% over VMware alternatives.”

Palatine Growth Credit sits alongside sustainably-driven investor Palatine’s established Buyout and Impact private equity funds.

Important Notice: The fund mentioned within is only available to Professional Investors within the United Kingdom and Retail Investors may not rely on the information within. This is not an offer to sell, or an invitation for an offer to acquire, an interest in the Fund, nor is it an invitation to apply to participate in the Fund. This is not an offering or placement of interests in the Fund in any jurisdiction and should not be construed as such. No information in this document will form the basis of any contract.