The Oregon State Treasury , managed by the Oregon Public Employees' Retirement System, has approved a commitment of $250 million to Permira Advisers ' Permira VI, according to meeting minutes from the pension fund.
This is the first commitment the pension fund has made to a Permira fund, which launched in February and has a target of €6.5 billion and a hard-cap of €7 billion.
A spokesperson for the council, James Sinks said “Oregon state is looking to expand investment commitments to Europe and this commitment aligns with that strategy.”
The fund will pursue buyouts of medium to large-sized businesses and will seek equity investments of €250 million to €1 billion per transaction, in companies with enterprise values between €500 million and €3 billion, according to the meeting minutes.
Permira VI is expected to target 20 investments overall, with no single investment greater than 15 percent of the committed capital of the fund. It will target investments in technology, consumer, industrials, financial services and healthcare, with 60 percent of the fund targeting businesses that have or tend to have significant activities in Europe. The rest of the fund will focus on investments in North America and Asia, though it may also invest in geographies outside those realms, according to the meeting minutes.
“While a majority of Fund VI's investments are expected to be European businesses, the firm is gradually migrating toward a global investment mandate,” according to the minutes.
Permira IV, held a final close on €9.6 billion in 2006, above its target of €8.5 billion. It had a net internal rate of return of 6.5 percent and 1.3x investment multiple, as of September 2015, according to California Public Employees' Retirement System (CalPERS). Permira Fund V, held a final close on €5.3 billion in 2014, above its €5 billion target. Permira is currently investing out of that fund.
The minutes also mentioned that co-managing partners Tom Lister and Kurt Björklund, who have been in place since 2008, following a transition of the firm leadership, have both pledge to remain in place through the life of Fund VI, according to the minutes.
Oregon State Treasury did not return the request for comment by press time. Permira declined to comment.
In February, Oregon State committed $500 million to Vista Equity Partners VI, reported PEI. Oregon Public Employees' Retirement System has $68 billion assets under management.
London-based Permira Advisers was founded in 1985 and has €26.34 billion assets under management, as of June. In the past 30 years, the firm's funds have made more than 200 private equity investments in consumer, financial services, healthcare, industrials and technology.