Permira Debt Managers has closed its Sigma V structured credit fund, the latest vehicle in a strategy it has run since 2010.
The fund manager declined to disclose the amount of capital it has raised for the fund but said it had deployed more than $1.4 billion since it began investing in CLOs in 2010.
Sigma V will continue the strategy of the previous four vehicles, investing long-term capital in European CLOs in both primary and secondary markets. Permira said it has already made several investments from the fund, predominantly in the secondary market.
The firm said family offices were particularly attracted to the fundraising due to its relatively high rate of return and made up 50 percent of fund commitments. Existing and new investors committed to Sigma V with the majority of LPs from Europe and some from the Middle East.
Jihan Saeed, investment director at PDM, said: “CLO equity can give their best returns when there is volatility and we’re seeing a lot of that right now. As we’ve got a locked up structure we can be better placed to take advantage of short-term volatility and can think about the long-term value of our investments.”
The first three funds in the Sigma strategy have been fully realised, returning an aggregate of 1.8x net multiple and 19 percent IRR to investors. Sigma IV is fully invested and expected to be fully realised between 2021 and 2022. It has already returned more than 30 percent to investors. Sigma V is expected to be fully deployed by the end of 2020.