Permira Debt Advisors has closed its latest Credit Solutions Fund on €1.7 billion. Permira Credit Solutions III (PCS3) had a target of €1 billion, and previously held a first close on €900 million, according to PDI data.
The fund outraised its predecessor, which collected €800 million. In a company announcement, Permira notes the offering will employ a financing facility, giving it €2.1 billion to invest in total.
The announcement also notes the fund has put to work €660 million of committed capital to-date. This includes investments in Belgium-based medical supply company Duomed and UK-based private members club Soho House. The latter represented the largest private debt deal made from a Permira fund.
Thomas Kyriakoudis, chief investment officer at Permira, told PDI the firm has been able to deploy capital from the fund quickly. “Deployments have been strong,” he said. “Over the past 12 months we’ve deployed over €1 billion of capital in the market.”
Permira has been steadily growing its debt team, Kyriakoudis added, meaning decisions on deals can be taken much quicker. “Roughly one in nine, one in 10 deals we do,” he said.
A spokeswoman for Permira declined to reveal the performance target for the fund as well as performance figures for Permira’s previous direct lending offerings. Market sources told PDI that unlevered investors in offerings like Permira’s can expect between 7 and 10 percent in returns.
According to the firm’s announcement, over half of the investors in the latest fund are new investors.