Permira Hits $16 Billion Milestone for New Flagship Buyout Fund

Jan-Henrik Förster and Aaron Kirchfeld, Bloomberg News

Skyscrapers in the Canary Wharf business, shopping and financial district on the skyline in London, U.K., on Monday, March 21, 2022. The U.K. is expanding the Financial Conduct Authority’s powers in a package of post-Brexit changes to the way it regulates the City of London. Photographer: Chris Ratcliffe/Bloomberg , Bloomberg

(Bloomberg) -- Permira has gathered 16 billion euros ($16 billion) for its new flagship buyout pool after passing the fund’s first close, people with knowledge of the matter said.

The UK alternative asset manager has already beaten its initial target of 15 billion euros, according to the people, who asked not to be identified because the information is private. It will continue to raise more funds from investors through the rest of the year, the people said.

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.

The private equity firm raised 11 billion euros for its last flagship fund in 2019. A representative for Permira declined to comment.

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 benefitting some of the largest buyout houses like Clayton Dubilier & Rice, Hellman & Friedman and Advent International.

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.