Palio launches business loan scheme
Palio Capital Partners has announced plans to provide loans to UK-based mid-market businesses.
The investment manager said it is to provide "senior debt and mezzanine loans" to companies worth £10m to £100m following "long established success" in the US.
The business said it has made the move following "a significant credit supply gap created by the banks' failure to lend to SMEs" in the UK.
Palio said it has received backing from European investors and The European Investment Fund (EIF) with the fund said to be a third of the way to its first close of £100m.
Jerry Wilson, chief investment officer of Palio, added: "Our new fund will allow institutional investors unprecedented access to superior risk-adjusted returns from UK backed SMEs.
"There is an imbalance between demand and supply of senior debt for private equity deals and this will result in higher pricing and better overall lending terms, giving the asset class a very favourable risk-return profile."
