Permira V hits €5bn hard-cap

Ellie Pullen
26 February 2014

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Permiraтs latest buyout fund, Permira V, has hit its hard-cap of тЌ5bn and could reach тЌ5.3bn with a GP contribution.

The fund is set to close officially in April. Permira V originally had a target of €6.5bn when it launched in September 2011, but changed this to €4-5bn in March last year.

The fund will include a GP contribution of €200-300m, which could take the total up to €5.3bn.

The vehicle held its first close on €2.2bn in April 2013. At the time, it had received commitments from 30 LPs including previous investor SVG Capital, which contributed €100m to the firm's fifth buyout fund. SVG had originally provided €2.8bn to Permira V's predecessor, Permira IV, before it scaled back its contribution in 2008.

Permira V will focus on the large-cap market, investing in companies with enterprise values of €500m-3bn. The fund's average equity ticket will hover around the €250m mark. Permira V, which has a lifetime of 10 years, will aim to make 15-20 investments, deploying around €1-1.5bn of equity per year.

At the start of this year, Permira fully exited ProSiebenSat.1 alongside co-investor KKR through the sale of their joint 17% stake, which was valued in the €1-1.3bn region.

In November last year, the firm saw its portfolio company Just Retirement float on the London Stock Exchange at £2.25 per share, giving the UK business a market cap of £1.125bn. Permira, with the company and other selling shareholders, raised £394.7m in gross proceeds from the IPO. Permira retained a 62.4% stake in the business.

The firm also picked up 3i portfolio company Bestinvest, a London-based wealth manager, in November last year. Prior to that in October, Permira secured a majority stake in iconic British footwear brand Dr Martens for £300m.