Permira in market with €6.5bn Fund VI – Exclusive

The firm’s current vehicle, the 2014 -vintage Permira Fund V, is more than 60 percent invested.     

Permira has officially launched fundraising for its sixth flagship fund and is targeting €6.5 billion, according to investor sources.

London-based Permira declined to comment on the fundraising, but Private Equity International understands it will follow the same “market leaders” global investment strategy across Permira’s five core sector areas as its predecessor, Permira Fund V.

The 2014-vintage Permira V closed on a revised target of €5.3 billion after three years of fund raising, down on the €9.6 billion raised by pre-global financial crisis Fund IV, which closed in 2006.

According to industry sources familiar with the matter, Fund V is currently just over 60 percent invested, having deployed more than €3 billion in 14 investments to date.

In 2015 alone, Fund V is understood to have deployed €1.5 billion in six investments. These were South African data centre operator Teraco; French campsite operator Vacalians Group; US e-commerce business Magento; US healthy snack companies Medora and Ideal Snacks; German debt collector GKFL, followed by UK add-on Lowell, and US software group Informatica. The latter was as part of a $3.5 billion co-investment deal alongside CPPIB, as reported by PEI.

Overall, Permira Fund V is believed to have deployed an additional €2 billion of co-investment capital.

Last year, Permira returned €4.5 billion to investors, according to investor sources. Much of that was made up of exits from Fund IV, as reported by PEI. Luxury clothing retailer Hugo Boss launched an initial public offering, generating a 2.3x return,while fish vaccine business Pharmaq was sold to Zoetis for $765 million, generating a 3.2x multiple.

Other Fund IV proceeds in 2015 came from the $3.5 billion sale of Arysta Life Science for a 1.7x return, and the partial divestment of its stake in semiconductor business Freescale, which was merged with NXP.

In January 2016, Fund IV medtech portfolio company Creganna was sold to TE Connectivity, in an $895 million deal that netted Permira a 3.4x multiple, as reported by PEI.

Over the past year other divestments from earlier funds included Iglo, which was sold to Nomad for $2.8 billion generating a 2.3x return. Permira and Apax Partners also divested their stake in UK retailer New Look to South African group Brait for $1.9 billion, netting the firm a 4.3x multiple.

Permira had a busy 2015 in terms of expanding its global footprint. In January it opened its first mainland China office in Shanghai, after acquiring a team of five from Unitas headed up by Jim Tsao, as reported by PEI.

It also appointed a new head of Japan, Ryo Fujii, a new head of portfolio group, Oliver Steil, and a first head of ESG, Adinah Shackleton.