Permira Debt Managers has raised €1.7 billion in commitments for its third direct lending fund, handily beating the €1 billion target.
Including leverage, the new fund expects to have €2.1 billion in investment capacity, according to a statement. It was supported by global pension funds, insurance companies and family offices, and more than half the fund’s investors are new relationships.
The new fund, named Permira Credit Solutions III, will invest predominately in primary, senior secured loans to mid-market companies, both sponsor and non-sponsor backed. It has reportedly deployed €660 million into nine companies since its first close in December 2016.
Permira Debt Managers raised €800 million in 2015 for Fund II and €1.3 billion in 2008 for Fund I, according to Reuters.
“We continue to see a strong opportunity in Europe, where traditional sources of debt capital have tightened, and we have made significant investments in our team to ensure we find attractive businesses to back,” said James Greenwood, CEO of Permira Debt Managers, in the statement. “We are delighted with the support we have received from existing and new investors alike which evidences their continued confidence in our strategy.”
Permira Debt Managers is the debt management affiliate of large private equity firm Permira. The company is a provider of alternative credit solutions and long-term debt capital to successful European businesses, deploying €3.4 billion in capital across 94 businesses in 12 countries since inception in 1997.