Permira runs GP-led process on €9.6bn fund – exclusive

The UK private equity giant wants to move a customer services-focused software provider out of its 2006-vintage Permira IV fund, Secondaries Investor has learned.

Permira, the UK’s third-biggest private equity firm according to the PEI 300, has become the latest blue-chip manager to run a GP-led secondaries process on one of its funds.

The London-headquartered firm wants to move portfolio company Genesys out of its 2006-vintage Permira IV fund into a continuation vehicle, according to three sources familiar with the matter.

It is unclear whether there are other assets involved in the deal.

Permira is working with advisor Lazard on the process, two of the sources said.

Fund IV raised €9.64 billion by final close and attracted 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 7.7 net internal rate of return and a 1.5x investment multiple as of 31 March, according to an investment document from the California Public Employees’ Retirement System.

Genesys is a customer services-focused software provider that Permira acquired in 2012 for $1.5 billion, carving it out of telecommunications equipment company Alcatel-Lucent. Since Permira’s acquisition, Genesys has almost tripled its employees to 4,800 from 1,700.

In 2016 Hellman & Friedman acquired a “substantial equity stake” in Genesys for around $900 million, valuing the software company at around $3.8 billion. Permira continued to own a majority stake in the firm.

Firms that have explored single-asset restructurings this year include Baring Asia Private Equity, Blackstone and Bridgepoint, owner of Secondaries Investor parent company PEI Media.

Permira and Lazard did not return requests for comment.

– This story was updated to note it is unclear whether there are other assets involved in the deal.