Bloomberg News

Permira Said to Delay Initial Close for Europe Buyout Fund

July 18, 2012

Permira Advisers LLP, the private- equity firm that controls Hugo Boss, has postponed a planned initial close for its latest buyout fund by several months, according to two people familiar with the situation.

The firm expects a first close in September, pushed back from June, for Permira V, which is seeking 6.5 billion euros ($7.99 billion), these people said. London-based Permira sent marketing materials to investors in September.

Noemie de Andia, a spokeswoman for Permira, declined to comment.

Permira is gathering money in a competitive fundraising market, prompting it to join other firms in offering discounted management fees to investors who participate in a first close. The prior fund, Permira Europe IV, was producing a 0.5 net internal rate of return and a one times multiple as of Dec. 31, according to the California Public Employees’ Retirement System. Permira’s biggest investor, SVG Capital Plc (SVI), cut its commitment to the firm by more than half after the September 2008 collapse of Lehman Brothers Holdings Inc.

A number of large buyout firms have waited with their first close until they had gathered significant commitments. Apax Partners held a first close for its latest buyout fund with 4.3 billion euros after 10 months of fundraising, a person familiar with the matter said in March. Cinven Ltd. collected more than 3 billion euros for its latest fund six months after it came to market.

As it seeks to win new investors, Permira can point to the pending exit of Italian luxury brand Valentino Fashion Group SpA. The firm this month agreed to sell Valentino to Mayhoola for Investments SPC, a company backed by unidentified Qatari investors. Another planned exit, of Iglo Foods Group Ltd., was called off after the firm received bids that it deemed too low.

To contact the reporter on this story: Sabrina Willmer in New York at swillmer2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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