Following a manager search, the UK’s Environment Agency Pension Fund (EAPF) has allocated £60 million (€72 million; $76 million) to Permira’s Credit Solutions III (PCS III) fund.
In a statement, EAPF said it was “impressed by their [Permira’s] focus on senior loans with moderate leverage, their track record, and their organisational commitment to responsible investment”.
Permira is understood from market sources to be targeting around €1 billion in total for its PCS III fund. The firm itself declined to comment on fundraising activities.
The predecessor fund, PCS II, closed on €800 million in 2014 and, like the latest fund, had a focus on senior debt in Western Europe and Central and Eastern Europe. The firm also closed Sigma 4, a CLO fund, on €275 million earlier this year.
The EAPF is the pension fund of the Environment Agency, the environmental organisation. It has just over £3 billion in assets and a strategic allocation of 5 percent to private debt. Its previous private debt investments have included the Generation Credit Fund and the Bluebay UK direct lending fund.
The manager search which resulted in the commitment to the Permira fund was advised by bfinance, a consultancy providing specialist advisory solutions to institutional investors.