The National Pension Service (NPS) is expected to reap considerable profits from shares of European no-contact companies – those with limited face-to-face dealings – that it bought through private equity firm Permira, as they are soaring in value.
Funds advised by Permira and two other European private equity firms Cinven and Mid Europa, acquired Polish company Allegro from Naspers Limited, a multinational consumer internet company based in South Africa, for $3.253 billion in January 2017. Permira participated in the acquisition through its sixth flagship fund Permira VI and is still holding a 32.8% stake in Allegro after its initial public offering (IPO) last month.
Permira VI has earned more than seven times its original investment due to Allegro’s recent listing and soaring share prices, giving hefty profits to NPS, according to Yonhap Infomax, the financial news arm of Yonhap News Agency. NPS is known to have invested $100 million in the buyout fund.
The shares of Allegro, Poland’s top e-commerce platform, leapt more than 90% after its debut on September 29.T he IPO price was 43 zloty per share, but it was trading at 81.45 zloty on October 19, or a value of 83.6 billion zloty ($21.7 billion).
Korea Teachers’ Credit Union also reportedly invested $50 million in the Permira VI. Allegro, which was founded in 1999, is one of the leading technology-driven trading companies in Poland and in Europe.
NPS is also believed to have benefitted from the rapid growth of German software company TeamViewer, Infomax said.
Permira’s return on investment is more than 16 times due to TeamViewer’s recent listing and rising share price. TeamViewer priced its IPO at €26.25 per share last September, thus valuing the firm at €5.25 billion, but now its shares are trading at around €45.60. Permira acquired TeamViewer in 2014 through its buyout fund Permira V and NPS reportedly invested more than $100 million in the fund.
Permira is a global investment firm founded in 1985, with more than 250 people in 14 offices globally spanning Europe, North America and Asia. The firm advises funds with a total committed capital of $44 billion. (Reporting by Jinwon Lee)