Palio Capital Partners LLP ("Palio") is an investment manager that has been established to address the substantial funding gap for debt finance in the UK lower mid-market ("LMM") for Private Equity ("PE") deals.

The Palio team has an unrivalled blend of PE and senior debt experience together with strong relationships amongst the predominant LMM PE houses.

Palio aims to provide investors with access to high margin acquisition loans which were previously the monopoly of the UK banking sector. Palio's loans will have unparalleled flexibility lending only to outperforming UK private companies who have succeeded in raising equity funding from their PE backers largely based on the excellence of their management teams and their prospects for growth.

The recent banking turmoil has created a significant 'credit supply gap' in primary PE acquisition finance, especially debt. Palio intends to target this gap specifically in the LMM. Palio estimates the debt funding and refinancing 'need' in the UK LMM between 2011-2015 is approximately £20-25bn of which c.50% represents a 'funding gap'.

Palio is launching the Palio Superflex Fund I LP ("PSF-I"), a senior debt and mezzanine fund. PSF-I will be domiciled in an established regulated jurisdiction. The fund will target private equity ("PE") transactions and in particular management buyouts ("MBO's").