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Permira to acquire GFKL from Advent

The global private equity firm’s Fund V will buy the German financial services company for an undisclosed amount

A company backed by Permira has agreed to buy Germany-based GFKL Financial Services from Advent International for an undisclosed amount in a transaction subject to antitrust approvals, according to a statement.

The funds will contribute to GFKL's capitalisation strategy for expanding in Germany and worldwide, and come from Permira's fund V, which closed last year on €5.3 billion, beating its €5 billion target. This takes the fund to being just under fifty percent invested and marks its second financial services investment.

“We see a lot of opportunities for GFKL to expand its activities in Germany and internationally and accelerate its growth,” said Philip Muelder, partner Permira's financial services team.

Advent purchased GFKL in 2009 with unleveraged equity from its €6.6 billion 2008 European fund. At that time, GFKL was a broad financial services company involved in leasing, factoring, software and receivables management.

GFKL currently manages €16.6 billion ($18.85 billion; £12.02 billion) in receivables portfolio for clients in industries such as banks, insurance companies, online retailers and telecommunications companies.

Permira, founded in 1985, has €26.34 billion in assets under management and managed 25 funds to date, according to PEI's Research & Analytics division.