Permira Targets Over $15 Billion for New Flagship Fund

(Bloomberg) -- Permira is targeting more than $15 billion for a new private equity fund less than two years after raising its last flagship investment vehicle, according to people familiar with the matter.

The buyout firm is in the early stages of speaking with investors about the euro-denominated global fund, the people said, asking not to be identified discussing confidential information. Permira could begin gathering commitments in the second half of the year, one of the people said.

Preparations for the fund are at an early stage, and the size of the pool could change depending on investor demand, the people said. A representative for Permira declined to comment.

Permira only closed its last flagship buyout fund in October 2019, raising 11 billion euros ($13.4 billion). Private equity firms typically begin raising a new fund when they have deployed about two-thirds of its predecessor.

The quick return to the fundraising trail underscores again that investors’ appetite for private equity remains unsated amid the low-interest rate environment. This is allowing buyout firms to plan fresh mega-funds even as they sit on record amounts on unspent capital from previous fundraising cycles.

Carlyle Group Inc. is chasing $22 billion for its largest ever fund, Bloomberg News reported in April, while Vista Equity Partners has notified investors of its plans to raise new money later this year. Elsewhere, BC Partners has hired Citigroup Inc. banker Alexis Maskell as head of investor relations amid the raising of a record 8.5 billion-euro flagship.

The vast sums of money at their disposal has fueled a fiercely competitive market for assets, in which private equity firms have been spending big to beat out rivals across sectors -- particularly in health care and technology. Such is the strength of competition that many buyers are choosing to bypass traditional auction processes altogether and pre-empt other bidders on deals.

Permira was founded in 1985 and manages 44 billion euros in assets, according to its website. It invests across the consumer, health-care, services and technology sectors. In recent months it has been among the investors to sell shares in the initial public offerings of e-commerce platform Allegro and bootmaker Dr. Martens Plc, which both soared on their market debuts.

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