Permira raises £3.6bn for new fund

PRIVATE investment group Permira turned up the heat in the Debenhams bid battle by raising a massive £3.6bn (e5.1bn) for a new fund - enough to buy the store group twice over.

It was the largest ever fundraising in Europe by a private equity group and gives Permira a hefty war chest to raise its Debenhams bid.

The market thinks it will lift its 425p-a-share offer to 475p, costing £1.7bn.

Permira, once called Schroder Ventures, has seen its first offer overtaken both by rivals CVC and Texas Pacific and by Debenhams' share price (down 1p to 469p).

Experts contrasted the speed at which it raised its new fund with the struggle by other private groups such as Doughty Hanson to raise cash in tricky markets. It is also bidding for satellite firm Inmarsat.

Permira partner Charles Sherwood said the new fund would be used to buy European businesses.

Some 18% of all Europe's acquisitions this year have been done by private investment groups.