Coller Capital is leading a GP-led secondary transaction for the remaining assets of Permira IV, shifting the four remaining investments into a new $829 million fund.
"Permira wanted to continue to own the remaining assets in the portfolio as they could see further value creation over a longer holding period," said Martin Fleischer, principal at Coller Capital, in a written statement.
The remaining assets in Permira IV, which closed in 2006, are four software and technology companies. The largest is Genesys, a cloud-based customer experience and contact center solutions company.
"With this transaction, LPs who wanted liquidity and an exit were able to do so, while at the same time Permira and the remaining LPs had the opportunity to participate in further value creation of the portfolio," Mr. Fleischer said.
Permira executives declined to provide what percentage of Permira IV's investors cashed out and what percentage opted to remain invested in the assets of the new five-year fund with the terms for which they originally invested.
Original investors in Permira IV include the $382.7 billion California Public Employees' Retirement System, Sacramento; $147.4 billion Washington State Investment Board, Olympia; $109.5 billion New York State Teachers' Retirement System; $100.2 billion Ohio Public Employees Retirement System, Columbus; $56.1 billion Maryland State Retirement & Pension System, Baltimore; and $30.9 billion Pennsylvania State Employees' Retirement System, Harrisburg.
According to CalPERS website, its $286.5 million capital commitment made in 2006 produced a net internal rate of return of 7.8% and a multiple of 1.5 times as of Sept. 30. CalPERS officials declined to say whether CalPERS opted to liquidate its investment in Permira IV or continue investing in the assets in the new fund.