Permira Proposes LP Commitment Cuts

LONDON (Reuters) – European buyout firm Permira has proposed a 60 pct cap on commitments to its fourth fund for investors struggling to meet their planned allocations.

Permira said the proposals will allow current investors to cap their commitments to the fund at 60 percent, against a current called amount of 52 pct, in return for a 25 percent reduction in their entitlement to distributions from the fund. Investors will continue to pay management fees based on their original commitments into the fund.

Those investors who do not elect to cap their commitments will continue to participate in all the fund’s new investments, it said.

SVG Capital Plc SVI.L is Permira’s largest investor, accounting for over one third of the fund’s commitments.

(Reporting by Simon Meads; Editing by Mike Nesbit)