UK buyouts giant Permira is set to raise €11bn for its latest fund Permira IV after raising €10bn at its first closing, making it the largest ever private equity fund raised outside the
The closing comes just three months after the Information Memorandum was US. issued in March, and was heavily subscribed, with allocations still to be finalised. The final figure marks a significant increase on the original target of €8.5bn, and will see the fund continue the investment strategy which has so far proved successful for the firm, namely focusing on large and complex buyouts in Europe – where it will spend at least 70% of its capital – the US and Japan. The fund is expected to focus on the consumer, chemicals, industrial products and services, and TMT sectors.
SVG Capital has committed €2.8bn to the fund and SVG Advisers €1bn, the latter of which will involve the launching of several feeder vehicles for Permira IV, allowing investors an attractive, structured access to Permira IV, typically at a lower minimum investment threshold than the fund itself.
SVG and other publicly listed vehicles are the largest sources of capital for the fund, making up 36% of the amount raised, with institutional fund managers comprising 9%, pension funds 31%, government bodies 10%, insurance companies 6%, charities 4% and banks 4%. European investors committed 55% of the total money raised, with 35% coming from North America, 8% from the Far East and 2% from the Middle East.
Permira IV puts the firm on a par with the US big league; Texas Pacific Group closed on US$14.25bn in April (around €11bn), KKR is expected to close on a slightly higher figure this year, and Blackstone has so far raised US$13.5bn (€10.5bn) with a final figure of around €12bn expected shortly.