UK private equity firm Palamon Capital Partners has defied concerns that deals struck at the height of the buyout boom will struggle to deliver strong returns, by making three times its money from the sale of a 2007 investment in an online clothing company.

Palamon has sold Dress for Less to fashion sales club Spanish Privalia Venta Directa, according to a statement, after buying a majority stake in the business at the private equity market's peak in late 2007.