Permira exceeds €7.25bn hard-cap on latest buyout fund

Gareth Morgan
08 February 2017

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Pan-European buyout house Permira closed its Permira VI fund in January 2017 on €7.5bn, unquote" has learned.

Permira VI was launched in February 2016, with an initial target of €6.5bn, and held a first close in July of that year on €6.3bn. Having hit its €7.25bn hard-cap, the GP then contributed €250m.

The GP's previous fund, Permira V, raised €5.3bn at final close in 2014 and completed its final investment in September 2016, purchasing Personal & Informatik from HgCapital.

Since 1997, Permira's previous five funds have invested a total of €21.4bn. As of 31 December 2015, these investments had generated a net IRR of 21.5% and a net total value multiple of 1.6x, according to LP reports.

Investors
Around 85% of LPs in Permira VI are backers of Permira's previous vehicles. Notable commitments came from US Pension funds, specifically California Public Employees Retirement System with €440m, the Teachers Retirement System of Texas with €444m, and the Washington State Investment Board with €320m. Additional LPs and commitments can be found on unquote" data's dedicated fund profile for Permira VI.

Investors in the fund are geographically diverse, with 47% from North America, 30% from Europe and 23% from Asia and the rest of the world. Roughly two-thirds of these are pension funds, with other financial institutions making up 30%, and the remaining 7% being investment managers.

Investments
The fund will build on the GP's existing investment strategy, investing in mid-to-large-cap buyouts of European companies across the consumer, financial services, healthcare, industrials and technology sectors.

Permira VI will commit equity tickets of between €250m-1bn in companies with enterprise values between €500m-3bn. The majority of these will be European businesses, but the fund will invest opportunistically in companies outside Europe, helping them build a presence in the European marketplace.

The fund has made three investments to date, buying out Polish online marketplace Allegro along with Cinven and Mid Europa, acquiring German fashion retailer Schustermann & Borenstein in a secondary buyout, and taking a minority stake in fund and corporate services provider Alter Domus.

People
Permira – Tom Lister, Kurt Björklund (co-managing partners).