Palatine, which has backed the bar group since 2015 when it funded a £13m management buyout from Living Ventures, is in talks to sell the business, Sky News reports.
The Alchemist has 23 sites in the UK including Birmingham, London, Manchester and Newcastle, as well one in Berlin.
Last year it announced its ambitions to open 10 new sites over the next three years having secured a £15m loan from lender OakNorth.
CEO Simon Potts said at the time: “Despite the well-known challenges facing the hospitality sector, we take pride in our unwavering commitment of growing our brand across the UK.
“Looking ahead we have ambitions to roll out 10 new sites over the next three years with the funding from OakNorth being a key catalyst for this.”
Earlier this month, the business reported group sales of £57.9m for the year ended 31 March 2025 (FY25), a slight reduction against £60.3m the previous year.