Alchemy Partners, the UK mid-market buy-out fund, is changing its strategy to focus on larger deals and is to ask for more money from investors as a result.

The shift comes as Alchemy prepares to exit its minority investment in Phoenix IT Group, a UK sub-contractor to IT services companies. Phoenix, advised by UBS, is expected to float by the end of the year on London's main market in a deal worth about £200m (€289.5m).