Coller leads $829m GP-led secondary deal for Permira IV

Katharine Hidalgo
28 May 2020

Tweet
Facebook
LinkedIn
Google plus
Send to

Coller Capital has led a GP-led secondary transaction for four assets of Permira IV.

As previously reported by Unquote in March, Neuberger Berman also committed to the deal, which offers existing LPs in the fourth-generation fund the option either to take liquidity at this juncture or to remain invested in the assets on the terms on which they originally invested.

While Coller provided the largest ticket in the vehicle, Unquote understands NB provided a simlar sized ticket, with the two secondaries investors providing roughly half the total sum invested. The remaining capital was provided by a syndicate of diverse secondaries investors through significantly smaller tickets.

Coller drew equity from its eighth-generation secondaries vehicle, which held an interim close on $4.9bn in January 2020.

NB is both a secondaries investor and co-investor. The firm drew equity from its NB Secondary Opportunities Fund V and other ancillary and sidecar vehicles, Unquote understands.

On the transaction's closing, the fund's remaining four assets, together with a co-investment vehicle for the largest of them, Genesys, will transfer into a new investment vehicle with a five-year life.

Martin Fleischer, a principal with Coller Capital said: "Permira wanted to continue to own the remaining assets in the portfolio as they could see further value creation over a longer holding period. With this transaction, LPs who wanted liquidity and an exit were able to do so, while at the same time Permira and the remaining LPs had the opportunity to participate in further value creation for the portfolio."

Permira IV's remaining assets comprise four software and technology companies, including Genesys, eDreams and Asia Broadcast Satellite. Genesys is the most attractive of the three remaining assets, a source familiar with the situation told Unquote in March. Permira invested in 2012, creating a standalone business after a carve-out from Alcatel-Lucent in a transaction valued at €1.5bn. Since then, it has made 10 acquisitions. In 2016, the GP sold a minority stake in the business to fellow private equity house Hellman & Friedman.

Fleischer said of the company: "Genesys is very much in line with our strategic focus on businesses that we believe will do well in an economic downturn. It is deemed to be fairly unaffected by the current crisis due to the long‐term and contractual nature of the company's revenues and mission critical products. The company is poised to benefit from the work-from-home trend."

The new investment vehicle is expected to provide fresh capital to support value creation in the companies.

When asked about the effects of the coronavirus crisis on the execution of this deal, Fleischer said: "We feel very comfortable with the robustness and resilience of the portfolio, and, despite the Covid-19 crisis, our original investment thesis remains fully intact."

Permira IV was raised in 2006 and is now coming to the end of its lifespan. Further opportunities for growth have been identified, but no uncalled capital is left, prompting the GP-led process in order to tap a new pool of investors, as previously reported by Unquote.

Permira IV held a final close on its agreed cap of €11bn in September 2006. The fund originally set out to raise €8.5bn, according to Unquote Data. The fund had attracted 180 investors from around the world at the time of the final close. SVG Capital notably committed €2.8bn to Permira IV.

People
Coller Capital – Jeremy Coller (chief investment officer).

Advisers
Equity - Lazard (corporate finance)