Permira holds $7.2b final close global Fund V

The fund - which also includes a GP contribution of EUR200-300 million - had been in the market for just under three years. UK-headquartered Permira had originally set a EUR6.5 billion target for the fund but scaled back its ambitions to EUR4-5 billion a year later.

The vehicle held its first close of EUR2.2 billion in April 2013. At the time, it had received commitments from 30 LPs including previous investor SVG Capital, which contributed EUR100 million. SVG had originally provided EUR2.8 billion to the funds predecessor, Permira IV, before it scaled back its contribution in 2008. AVCJ Research also shows that Canadian Pension Plan Investment Board (CPPIB) contributed around $477 million to Fund V.

In total, around 72% of the fund consists of commitments from existing LPs, with rest made up of new investors. Approximately 40% of total commitments come from North America, with around 30% coming from Europe and 25% from Asia.

The new fund will follow Permira's long-term investment strategy of backing market-leading businesses with the potential to expand overseas. It will target companies with an enterprise value of $500 million to $4 billion. The fund's average equity ticket size is around $330 million. Permira V, which has a lifetime of 10 years, will aim to make 15-20 investments, deploying around EUR1 billion to EUR 1.5 billion a year.

Deal origination will be led by the firm's five global sector teams covering consumer, financial services, healthcare, industrials and TMT.

Permira has already made six investments from the fund but so far none of them are in Asia. The investments include UK shoe brand Dr. Martens, UK wealth management specialist Bestinvest, Canadian nutrition specialist Atrium Innovations, US online legal services provider LegalZoom, German speciality chemicals business CABB and remote access software company TeamViewer. Once of these deals have closed the fund is expected to have called 27% of its committed capital from it investors.

"Permira V has had a strong start and we are excited by the growth prospects of the six companies the fund has already acquired," said Kurt Björklund, co-managing partner at Permira, said in a statement. "The recent pace of investment reflects the outstanding pipeline of attractive opportunities that our five global sector teams have been able to identify, largely on a proprietary basis."

Permira's most recent and most significant Asia investment was its 2012 acquisition of Unison Capital's stake in Akindo Sushiro, a leading Japanese sushi restaurant. The deal - which was made via its Ireland-based vehicle Consumer Equity Investments (CEIL) - valued the company at $1 billion, including debt.

Permira IV - which counts Macau casino and hotel operator Galaxy Entertainment Group among its previous portfolio investments - grew by 30% in value in 2013 and was valued at a net multiple of 1.5x original cost as of March 31. By the end of this month Fund IV is expected to have returned more than three quarters of paid-in capital.

Other recent global fundraises include: Apollo Global Management ($18.4 billion) in January; Warburg Pincus Fund ($11.2 billion), Silver Lake ($10.3 billion), Apax Partners (EUR5.8 billion, $7.5 billion), CVC Capital Partners (EUR10.5 billion) and the Carlyle Group ($13 billion). While Apollo, Silver Lake, CVC and Carlyle exceeded their initial targets, Warburg Pincus and Apax fell short.

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