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Comeback kid Permira hits biggest close yet with €11B mega-fund

Following a rather rocky period of past fundraising, London-based PE firm Permira has closed its seventh fund on €11 billion.

London-based private equity firm Permira has closed its seventh flagship fund (P7) on €11 billion (around $12.2 billion) in less than a year. Launched in January, the vehicle will follow the firm’s traditional investment strategy, focusing on businesses within the technology, consumer, financial services, healthcare and industrial tech and services industries.

P7 marks a return to form for Permira, which had something of a fallow fundraising period following the global financial crisis. In 2006, Permira had raised over €10 billion in commitments for P4, which was, at the time, Europe’s largest buyout fund. After 2008, however, the investor’s vehicles dwindled in size when one of its largest backers, SVG Capital, revised its commitment, capping it at 60% and reducing its uncalled commitments by £796 million (around $1 billion at today’s conversion rate) to £344 million, according to The Times.

Permira is said to have spent nearly three years fundraising for its fifth vehicle, which amassed €5.3 billion in 2014—more than €1 billion less than the original target the firm reportedly scaled back due to issues in its portfolio after the crisis. The firm’s next capital pool faired better as its fund performance improved—returning 8.6% and 14.29% for P4 and P5, respectively, per the PitchBook Platform—with its sixth fund reportedly reaching €7.5 billion in its final close in 2016.

This latest fundraise is once more one of Europe’s biggest buyout funds. Permira has outdone the likes of EQT, the continent’s second-largest PE firm, which raised €10.75 billion in February 2018 for its eighth effort. It also surpasses Cinven‘s latest fundraise in May, which saw the investor collect €10 billion in less than four months. However, P7 is still quite a way off from the €16.4 billion that CVC Capital Partners banked for its most recent flagship buyout fund in 2017.

Permira’s new fund closes at a time when the firm is rumored to be pursuing several massive deals. The investor is said to have expressed interest in classified group Scout24‘s auto unit, AutoScout24, which is worth up to €2.3 billion, per Reuters. The Wall Street Journal has also reported that Permira has shown interest in cybersecurity giant Symantec alongside Advent International in a deal that could amount to around $16.4 billion.

Adding to the fundraise, Permira recently received a massive influx of cash through the listing of German software company TeamViewer when it sold a 42% stake at €26.25 per share, netting the firm €2.2 billion, per Reuters.

Featured image via fergregory/iStock/Getty Images Plus

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    Written by Leah Hodgson
    Leah Hodgson is a London-based senior reporter for PitchBook covering venture capital across Europe and the Middle East. Leah graduated from the University of Surrey with a BA in international politics with French. She has previously been a radio reporter in France. She later turned to financial journalism, covering the wealth management industry. She joined PitchBook in 2018.
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