Palatine Private Equity is exploring a sale of The Alchemist, the UK cocktail bar operator it has owned since 2015, as it looks to exit one of its longest-held consumer assets.

According to Sky News, the Manchester-based private equity firm has appointed Pura Advisory to oversee an auction process for the chain, which operates 23 bars across the UK and one in Germany. The Alchemist employs around 1,000 people and is known for its theatrical cocktails and immersive bar design.

The move comes amid continued strain on the UK hospitality industry, driven by rising input costs, higher taxes, and weaker consumer spending. Despite these challenges, The Alchemist remains focused on selective growth. Last year, it secured a £15m loan from OakNorth Bank to fund up to ten new openings while streamlining its portfolio through the closure of underperforming venues.

CEO Simon Potts said at the time: “Despite the well-known challenges facing the hospitality sector, we take pride in our unwavering commitment to growing our brand across the UK.”

Palatine’s decision to divest aligns with its shift away from consumer-facing investments toward business-to-business opportunities. The firm, which first invested in The Alchemist when it was spun out of Living Ventures, has held the company for nearly ten years, a long hold period in private equity terms.

A spokesperson for Palatine declined to comment on the process.

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