Private equity heavyweight Permira has held a first close on Permira VI. The firm hit the road in February this year to market the fund and has so far raised €6.3 billion against a target fund size of €6.5 billion, according to a letter sent to investors at the beginning of the week.
The fund is understood to be on track to close on its hard cap of €7.25 billion in September.
Permira declined to comment.
The fund’s predecessor, called “P5”, is now 76 percent invested in 16 companies. While raising capital for the sixth fund, Permira has been busy returning cash to investors. The firm has returned around €5.6 billion to investors over the last 12 months. Two recent exits – from technology business Genesys and industrial company Intelligrated – are due to complete in September and will return 4x and 5x invested capital respectively, PEI understands.
As well as returning investors from previous Permira funds, the firm has brought in some new LPs. Among these is Oregon Public Employees' Retirement System, which in June committed $250 million to the vehicle as part of its effort to up its exposure to European investments.
Permira VI 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 public meeting minutes from the Oregon pension.
Permira VI is expected to target 20 investments overall, with no single investment greater than 15 percent of the committed capital of the fund and will invest in technology, consumer, industrials, financial services and healthcare businesses with 60 percent of the fund targeting businesses with 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 of these, according to the meeting minutes.
In late June, Permira’s competitor Cinven closed its sixth fund one €7 billion. BC Partners, another significant player with a similar profile, is currently marketing its 10th fund with a reported target of €7 billion.