US pair lead as Permira and HgCapital funds raise £4bn

US firms Fried Frank Harris Shriver & Jacobson and Proskauer Rose have advised on a duo of funds amassing close to £4bn that indicate the mixed success of private equity houses’ fundraising efforts.

Nigel van Zyl
Nigel van Zyl

Fried Frank Washington DC funds partner Richard Ansbacher is understood to have led for London-based Permira on the formation of its latest fund targeting a reported €4-5bn (£3.4bn-£4.2bn).

The Permira V fund reached first close this week having reportedly raised €2.2bn (£1.9bn), putting it significantly short of its current target and well off the original €6.5bn (£5.5bn) aim that was revised down earlier this year after it kicked off the roadshow in late 2011.

Meanwhile, Proskauer London funds partner Nigel van Zyl headed a team acting for HgCapital in relation to its over-subscribed HgCapital 7 vehicle, whose final closing was announced earlier this month.

The buyout group raised £2bn earmarked for mid-market investments in TMT, industrials, healthcare and services and will target companies with enterprise values of £80m to £500m, mostly in northern Europe.

Richard Ansbacher
Richard Ansbacher

Van Zyl, who brought over the client from SJ Berwin after joining from the UK firm in early 2012, was joined on the mandate by City partner Kate Simpson, London funds associates Andrew Shore and Jonathan Short, tax associate Catherine Sear, Boston and New York-based global funds co-head David Tegeler, New York tax and employee benefits partner Ira Bogner and Boston tax partner Mary Kuusisto.

HgCapital was also advised on offshore matters by Mourant Ozannes.

Background to this deal:

Fried Frank is a longstanding adviser to Permira in the US on deals and fund formation, recently representing the group in relation to its $1.6bn acquisition of The US firm is understood to share the legal work on Permira’s fundraisings with Clifford Chance, with the UK outfit usually taking a smaller role. Clifford Chance also handles the majority of Permira’s UK deals.

London and Munich-headquartered HgCapital used SJ Berwin in the City until relationship partner van Zyl joined Proskauer over a year ago along with fellow funds partner Oliver Rochman (16 January 2012). SJ Berwin advised the mid-market group most recently on its HgCapital 5 and HgCapital 6 funds.

Proskauer also advised HgCapital on its TMT-focused fund HgCapital Mercury, which held its final close at £400m in January this year.