UK-headquartered private equity firm Permira is anticipating to hold a €2 billion first close by the end of March for its latest buyout fund Permira V, according to a source.
The firm, which started fundraising in 2011, is targeting €6.5 billion for Permira V.
A Financial Times report had previously suggested the firm had planned to hold a first close by the end of January. However, a source countered that at the end of last year, Permira told investors it wanted to have “an indication” by the end of January which firms might want to commit at the first close. It was unclear at press time how much the firm has raised in soft commitments.
Permira declined to comment on fundraising.
In line with recent fundraising trends, LPs signing up before the first close receive discounted terms, though it was unclear at press time what discounts were being offered.
The expected first close will coincide with the end of the investment period of Permira IV, a €9.6 billion 2006-vintage, which is over 90 percent deployed. During the summer, Permira obtained an investment period extension for this fund until the end of March 2013.
During 2012, the firm realised €3.4 billion of proceeds from a combination of full sales, partial sales and recapitalisations, the firm said in a recent update to LPs. Permira IV currently has a distributed paid-in-ratio of 0.39x (the proportion of cold capital returned to LPs), it said.
In March 2012, Permira and News Corporation sold software company Cisco Systems which is understood to have delivered a 2.3x return and an IRR of 27 percent. In November 2012, the firm also sold its final stake in the Galaxy Entertainment Group.
In addition, the firm used its Fund IV to invest in Anchestry.com, a genealogy website, Akindo Sushiro, a Japanese sushi chain, Intelligrated, a material handling solutions business and Genesys, a software solutions provider.