Permira holds €160m first close on CLO fund

Permira Debt Managers is targeting €300m for the final close of its fourth CLO fund, which would make it one of the largest CLO funds raised in Europe.

Permira Debt Managers (PDM), the independent debt investment arm of private equity group Permira, last week held a €160 million first close on its fourth collateralised loan obligations (CLO) fund, market sources have told PDI.

Dubbed ‘Sigma 4’, the fund is expected to reach its €300 million target within the next six months. 

Permira declined to comment on fundraising.

Sigma 4 will focus primarily on European CLO equity, with the majority of the assets senior secured first lien buyout loans. It will invest in both primary and secondary CLOs.

PDM was established in 2007 and raises funds for both direct lending and CLOs. Its prior CLO fund, Sigma 3, raised €40 million in 2012. PDM has, in total, invested €800 million in the CLO market.

In July, PDM also closed its Credit Solutions II direct lending fund on €790 million. The vehicle targets both senior and master funds.

PDM had provided more than €2.8 billion to 85 businesses as of 31 December 2015, according to the firm’s website.