Neuberger joins Coller on giant Permira deal – exclusive

Neuberger Berman has emerged as co-lead of a restructuring on Permira‘s 2006-vintage fund.

The New York-headquartered investment manager joins Coller Capital in backing the process, which involves the remaining assets in Permira IV being moved into a continuation vehicle, according to two people with knowledge of the deal. The continuation vehicle is more than 80 percent capitalised, according to one of the sources, with Neuberger underwriting a smaller portion than Coller.

Secondaries Investor first reported in November that a GP-led process was under way advised by Lazard.

A majority of the Permira IV’s NAV is accounted for by Genesys, a California-based customer services-focused software provider that Permira acquired in 2012 in a $1.5 billion carve-out from telecoms equipment company Alcatel-Lucent.

In 2016, Hellman & Friedman acquired an equity stake worth around $900 million in a deal valuing the business at $3.8 billion, according to a statement. Permira maintained a majority stake.

It is not clear which other assets are in the fund.

Permira IV was a €9.64 billion fund with commitments from investors including Alaska Permanent Fund, WK Kellogg Foundation and Teacher Retirement System of Texas, according to PEI data. The California State Teachers’ Retirement System is one of the largest LPs in the fund, having committed $965.4 million.

Permira IV delivered a 7.8 net internal rate of return and a 1.5x investment multiple as of 30 June, according to an investment document from the California Public Employees’ Retirement System.

Neuberger Berman is in market with the 2019-vintage NB Secondary Opportunities Fund V, according to Secondaries Investor data. The target is not clear.

As of October Coller International Partners VIII had raised $4.5 billion of its $9 billion target, Secondaries Investor revealed.

Coller and Permira did not wish to comment on the deal. Lazard and Neuberger Berman did not respond to a request for comment.