Annual Review 2017

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Unlocking the global potential of ambitious businesses

Permira

Growing ambitious businesses into global industry leaders is challenging

By partnering with management and providing long-term, flexible support, the Permira funds have helped hundreds of businesses on this journey. We bring thirty years of experience to every new partnership. We listen, we challenge, and we help enterprising people build more efficient, more sustainable and more technologically-advanced businesses.

2017 highlights

2018 highlights

About Permira

The Permira advantage

Global Private Equity

The Permira funds have delivered market-leading returns for our private equity investors for over 30 years by partnering with more than 200 ambitious businesses to support their growth.

European Credit

Over the past decade, Permira Debt Managers (PDM) has also emerged as a leading independent multi-strategy credit platform.

Global reach

Permira has a well established global network of 14 offices across Europe, the US and Asia to help companies realise their global growth ambitions.

Map of North America Locations in North America

Map of Europe Locations in Europe

Map of Asia Locations in Asia

Multi-sector expertise

We help drive growth in portfolio companies by assembling highly relevant sector and operational experts together with specialist external advisers to support, advise and challenge management over the course of the investment.

consumer health tech industry financial services

Bound by tech

Permira’s experience as an early-stage technology investor dates back to the firm’s genesis three decades ago. A focus on backing growth, innovation and capitalising on technology shifts has defined our approach over that time. Today, we think large, profitable companies can still be innovative. We think they can still be disruptive, and can still grow quickly.

Our business: private equity

Permira’s strategy is designed to identify investment opportunities in sectors that enjoy strong secular growth, with minimal dependency on the cycle, such as ageing and growing populations, water shortage and cloud migration.

In a market where prices are high and bargains scarce, having a long-term view is key to buying with conviction. In 2017, our funds invested in six businesses across all five of our key sectors.

2017 investments

Tricor
financial services
Allegro
consumer tech
SB
consumer
LSNE
healthcare
Diversitech
industry

Growth Opportunities Strategy*

* Investment transferred into PGO1 as at June 2018

Klarna
financial services

2017 selected portfolio add-on investments*

* Shown for add-ons where additional Permira funds equity has been invested

Althea
health
Lowell
financial services
alterDomus
financial services

2017 full and partial divestments

TeamViewer
tech
Legal Zoom
tech
Atrium Innovations
consumer
Sushiro
consumer
Netafim
industry
Telepizza
tech
Iglo
consumer
Cortiefiel
consumer
Just
financial services

2018 new investments*

*Subject to new investment closing conditions

Deployment remained active in the first few months of 2018 with the completion of three additional investments and the announcement of five more.

Duff & Phelps
financial services
La Piadineria
consumer
I Med Radiology
healthcare

2018 realisations*

* Subject to closing conditions

Magento
tech
Just
financial services

Our business: credit

Permira Debt Managers is an independent debt management business comprising three strategies: Direct Lending, Structured Credit and CLO Management.

Founded over a decade ago, it is now one of Europe’s leading specialist debt investors, advising investment funds and products which have provided c.€5.2bn of debt capital to over 120 European businesses.

3 distinct strategies

Direct lending

PDM’s direct lending funds provide credit solutions to mid-market European companies across the capital structure. The Permira credit solutions funds have a track record of providing additional funding for organic and external growth, in particular overseas expansion, and buy-and-build strategies.

Structured credit

Our structured credit funds provide long-term capital to CLO managers in both the primary and secondary capital markets. This strategy relies on the excellent risk/reward characteristics inherent in senior secured debt, typically issued by larger leveraged buyouts. Our Sigma funds specialise in the most junior parts of the capital structure especially equity, where our credit-led approach provides the greatest differentiation.

CLO management

Building on 10+ years’ experience as a European credit investor, PDM has relaunched a CLO business with a dedicated investment team. The CLO invests in syndicated loans and bonds that are issued to support portfolio companies of private equity funds. Providus CLO I was priced in March 2018.

Investing responsibly

Responsibility is at the heart of the Permira business model. It helps provide a framework for the companies, in which our funds invest, helping them build better businesses.

  1. 1 Asset selection & origination
  2. 2 Due diligence & deal execution
  3. 3 Value creation
    & monitoring business transformation
  4. 4 Monetisation

1 Asset selection & origination

  • Environment, social and governance (“ESG”) screening and analysis of portfolio investments and teams

2 Due diligence & deal execution

  • ESG forms part of due diligence carried out by investment teams including compliance, liabilities, reputational issues, risks and opportunities. Potential issues and mitigation measures explored with support from ESG specialists
  • External advisers engaged where required
  • Material ESG matters integrated into value creation plans for monitoring over lifetime of investment

3 Value creation & monitoring business transformation

  • Material issues raised in due diligence addressed by portfolio company management teams
  • Engagement with portfolio companies, including through ESG reviews and site visits to identify opportunities for improvement
  • Financial and non-financial data gathered, monitored and addressed where appropriate

4 Monetisation

  • Detailed consideration is given to progress made by portfolio companies on ESG during the life of the investment
  • Consideration given to information for an exit process and sensitivities of likely acquirers

Creating sustainable value

Permira actively contributes to improving standards across the industry through its participation in associations and global initiatives.

Signatory of: Principles of Responsible Investment

Permira reports annually on its approach to integrating ESG