UK - SVG makes EUR 2.8bn commitment to Permira IV

The Permira Funds, which represent 75% of SVG Capital’s portfolio, have been the key driver in SVG Capital’s net asset growth to date and this commitment has been made after considerable due diligence into Permira and the market opportunity. Over their 21 year history, the Permira Funds have outperformed industry upper quartile return benchmarks, with the most recent funds, Permira Europe I, II and III, delivering top decile returns.

It is expected that SVG Capital’s commitment to Permira IV will be drawn down during the fund’s six year investment period. Funding will be provided from cash resources, distributions from SVG Capital’s portfolio of investments, a credit facility and an issue of long-term debt.

SVG Capital’s portfolio has been very cash generative and cash balances stand at £277m. In making the commitment to Permira IV, the board has reconfirmed its desired level of gearing for SVG Capital of 15-20% over time. To support its commitment to Permira IV and to maximise potential shareholder returns, SVG Capital is therefore increasing its credit facility from EUR 285m to EUR 600m. In addition, the company intends to issue approximately EUR 200m of bonds through a private placement in the coming months.

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