SVG Capital, the FTSE 250 private equity investor and fund management business, and Permira, an international private equity firm, have agreed to formalize their relationship, with SVG Capital agreeing to be the major investor in the next 2 funds Permira is expected to raise, Permira IV and Permira V. The agreement, which is pending shareholder approval at the AGM, enables SVG Capital to continue its focus on Permira Funds, confirming its position as their largest investor. Permira Funds currently represent approximately 78% of SVG Capital’s net assets. Whilst it is estimated that this figure will not change significantly, the agreement provides SVG Capital with full access to the next two funds to be raised by Permira. In addition, with SVG Capital’s listing on the London Stock Exchange, the agreement gives the Permira Funds a more structured exposure to investors keen to invest in private equity through the public markets. This applies particularly to smaller institutions and private investors, among whom there is a growing demand for alternative investments.
To strengthen further the relationship and align the interests of Permira with SVG Capital’s shareholders and the performance of the Permira Funds, SVG Capital will be issuing 6 million shares at €8.65 to Permira Capital, representing an investment of €51.8 million in SVG Capital. In addition, it is proposed that Damon Buffini, Managing Partner of Permira would join the Board of SVG Capital with effect from SVG Capital’s AGM.
Established in 1996, SVG Capital is a FTSE 250 private equity investor and fund management business, listed on the London Stock Exchange. At the end of 2004, the firm had net assets of €975 million and uncalled commitments of €670 million to a portfolio of private equity funds, the majority of which are advised by Permira.
Permira is an international private equity specialist owned and controlled by its partners. In October 2003, Permira announced the final closing of a third pan-European fund, Permira Europe III, which, together with commitments from Permira, totals over €5 billion. The firm's team of over 90 professionals, based in Frankfurt, London, Madrid, Milan, New York, Paris and Stockholm, advises the Permira Funds with a total committed capital of €11 billion. Since 1985, the Permira Funds have completed over 260 private equity transactions. During the last year, the Permira Funds have committed to 8 transactions with a combined transaction value of over €13 billion.
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