Palatine exits first ever impact investment Trade Skills 4U

Rachel Lewis
04 November 2022

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Private equity firm Palatine has exited its first-ever impact investment Trade Skills 4U, a UK-based adult learning provider, in a trade sale to City & Guilds.

The company specialises in electrician training, with Palatine helping to open two new centres in Leeds and Coventry, introducing more e-learning, and developing the product by adding NVQ and apprenticeships since 2017.

"Over our hold period, the number of students more than doubled," Matthew Coles, Palatine's impact fund investment director, told Unquote.

Buyer City & Guilds said the acquisition strengthens its offer across engineering, construction and transport, following its acquisition of rail training provider Intertrain in November 2019.

Trade Skills 4U was Palatine's first-ever impact investment, made via Palatine Private Equity Impact Investing Fund five years ago. The original buyout saw Palatine acquire a majority stake in the business.

The deal marks the third exit from that fund, following the sale of Estio Training to trade-backed PE and the exit of Veincentre to CBPE.

"Palatine has approached all of our impact investments to ingrain the impact angle of the product or service in the culture and the values," said Coles, adding that City & Guild will continue that impact element.

"If any future owner of our impact investments was to change the impact angle it would fundamentally dilute the business," he said.

Palatine is currently on the road for its second impact fund, Palatine Private Equity Impact Investing Fund II. The GP made its first deal from the fund in October 2022 with Inclusive Employers, a membership-based organisation that aims to create inclusive workplaces.

The impact space is becoming increasingly crowded with fund launches from specialised managers and generalist GPs. UK peer Agilitas recently made a legal filing for its first impact fund, Human Impact Fund.

"More impact investors are coming into the space, at Palatine we're now more than five years into our impact journey. We have a good track record, showing you can combine profit with purpose," said Coles.

Company

Trade Skills 4U is an electrical training provider in the UK, offering a range of courses for those wanting to change career as well as experienced electricians who require specific qualifications.

It operates from training centres including Gatwick, Leeds, Coventry and Warrington and has trained 90,000 individuals since its inception in 2005.

People
Palatine - Matt Coles (impact fund investment director).
Trade Skills 4U - Carl Bennett (founder, CEO).
City & Guilds - Kirstie Donnelly (CEO).