Palio Capital Partners, the UK debt investor that announced it was looking to raise £150m through an initial public offering last October, will cease to exist after its three founding principals opted to join a credit-focused hedge fund.

The firm's chief executive, former Gresham Private Equity London head Mike Henebery, as well as chief investment officer Jerry Wilson and chief operating officer Darren Gibson have joined Chenavari Investment Managers, according to a statement.