Permira, led by managing partner Kurt Bjorklund, started approaching investors about the fund in 2021, Bloomerg News has reported. It’s known for successful bets in areas like retail and technology, with investments in firms including British bootmaker Dr. Martens Plc and German software company TeamViewer AG.
Permira is raising money at a time when private equity fund investors are becoming more selective about the managers they back, as the major buyout firms shorten their fundraising cycles. That’s benefiting some of the larger buyout houses like Clayton Dubilier & Rice and Hellman & Friedman.
In May, Advent International said it had collected $25 billion for the second biggest private equity fund on record after less than six months of fundraising.
“There is still a huge pool of liquidity within the global financial system and with other asset classes contracting and looking uncertain, we can still expect PE fundraising to continue,” said Andrea Guerzoni, EY’s global vice chair of strategy and transactions. “Investors will also look at PE as a longer-term holding in a period of great uncertainty for the economy and capital markets.”
London-based Permira recently passed the pool’s first close and has already exceeded its initial target of 15 billion euros, according to the people. It will continue to raise more funds from investors through the rest of the year, the people said, asking not to be identified because the information is private.
The private equity firm was part of a consortium that agreed in June to buy software maker Zendesk Inc. for about $9.5 billion. Permira raised 11 billion euros for its last flagship fund in 2019. A representative for the firm declined to comment.
The war in Ukraine and market stress have also made investors more skittish about committing capital for areas like growth investments. While dealmaking has become harder for private equity funds, particularly as credit dries up, those firms with plenty of dry powder will be well positioned to take advantage of any market dislocations.