Permira holds first close for debt fund on €400m

The fund has a hard-cap of €800m, though it is likely to deploy more cash over the next few years thanks to an agreement with Bank of Scotland and RBS. Where PCS II lends through senior and subordinated debt structures, the banks can supply up to half of the money on these deals in order to provide an additional turn of leverage.

The fund follows on from PCS I, which was established in 2008 and has invested €1.2bn, predominantly in European leveraged buyouts. The vehicle was funded by Permira's private equity fund, Permira IV.

Investors
The fund has received commitments from pension funds and insurance companies across Europe, the US, Asia and the Middle East.

Investments
PCS II will focus on direct lending to European companies. It will look to invest in companies that are unable to access bank debt, as well as leveraged buyouts. The fund will allocate capital through unitranche financings, senior and second-lien loans, high-yield bonds, mezzanine and PIK notes.

It will leverage Permira's origination platform to secure deals, and due to the flexibility of the fund, where a deal might be initially targeted for a buyout, the GP will be able to offer a debt product if better suited.

People
James Greenwood is CEO of Permira Debt Managers. It recently named previous head of capital markets Thomas Kyriakoudis as chief investment officer. Furthermore, Permira's fund counsel Peter Gibbs has been appointed as chief operating officer of Permira Debt Managers.

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• Topics
• Fundraising
• Mezzanine
• Permira