Permira closes direct lending fund at €4.2bn

Permira Credit has held a final close for its fifth direct lending fund with a total of €4.2 billion of investible capital.

The fund, Permira Credit Solutions Fund V, will follow the same strategy as its predecessors and provide long-term, flexible financing for mid-market companies across Europe.

Sources close to the firm said it raised capital from LPs including pension funds, sovereign wealth funds, endowments, foundations and family offices.

It is thought the fund will make typical loans of between €50 million and €250 million and target firms with an EBITDA between €20 million and €100 million. It expects to provide investors with a gross yield of between 11-12 percent.

The fund is already investing and recently supported EQT’s take private of pharmaceuticals firm Dechra. It is thought to be approximately 37 percent invested.

Permira said, as a result of the fundraise, it has tripled its AUM over the past five years and grown its investment team to 78 professionals.

James Greenwood, CEO of Permira Credit, said: “The Permira Credit platform has experienced tremendous growth in recent years, with our Direct Lending, CLO Management and Structured Credit strategies seeing continued demand from investors. Last year’s appointment of Ian Jackson to launch Permira Credit’s Strategic Opportunities strategy was another significant step forward, and today, with a large and growing team, we look forward to continuing to serve our investors and act as a trusted partner to companies and sponsors across Europe.”