Permira Debt Managers hits €600m milestone

PDM has invested around 60 percent of its second direct lending fund, with its latest backing of the purchase of CLEAN Linen by MML Capital.

Permira Debt Managers (PDM) has deployed 60 percent of its second direct lending fund, Permira Credit Solutions II (PCS II).

The fund has invested €600 million across 18 separate European transactions out of €1 billion of available capital, the firm said.

The lending arm of advisory and private equity firm, Permira, recently acted as sole lender in financing the acquisition of Stevens Hatherley Holdings Limited by CLEAN Linen, a leading linen and laundry service provider in the UK founded in 1886. Terms were undisclosed and PDM declined to comment on the size of the loan.

The transaction will double the size of CLEAN Linen, which is backed by private equity firm MML Capital, and create one of the UK’s largest independent linen and garment rental providers. Stevens Hatherley Holdings originally traded as Paragon Laundry and the newly merged group also holds a stake in the Brilliant Laundry Group.

PCS II has extended long-term debt and an acquisition / capex facility is also available to support future growth.

Thomas Kyriakoudis, chief investment officer at PDM, said: “We are delighted to back CLEAN Linen, a long-established and successful family business that really stands-out in its sector. We see a great opportunity for the business to flourish in a competitive but attractive UK hospitality sector. The capital that our funds provide will be used to facilitate the acquisition of Paragon and bring to fruition exciting capex projects that should drive growth over the next few years.”

Livingstone Partners acted as advisors to CLEAN Linen and MML Capital while Freshfields provided legal advice to PDM. PCS II held a final close in July 2015.

PDM has recently gauged investor appetite for a listed direct lending vehicle to invest alongside its second direct lending fund, PDI understands.