Permira’s Strategic Moves in the Tech Industry: A Year of Bold Acquisitions and Leadership Evolution
It’s been a whirlwind year in the private equity world, with major acquisitions making headlines. Notably, the take-private sector has witnessed several high-stake deals, primarily led by private equity giants. Among them, Permira has emerged as a key player, partnering with Blackstone to acquire Adevinta, a European online classifieds group, for a staggering $13 billion. In October, Permira also took Squarespace private in a deal valued at $7.2 billion. But it’s not just these billion-dollar acquisitions that define Permira’s strategy.
- Private Equity Expansion: Permira recently closed a €16.7 billion buyout fund and maintains separate funds for minority and majority stakes in high-growth companies.
- Long-term Investment: Since 2017, Permira has been invested in Klarna, a Swedish fintech powerhouse now eyeing an IPO.
“We’re still invested in Klarna,” confirmed Brian Ruder, Permira’s new co-managing partner and co-CEO to TechCrunch. “With minority growth strategies, you don’t control the exit, so we embrace long-term involvement.”
{Brian Ruder}
As we near the end of 2024, TechCrunch spoke with Ruder about recent deals and Permira’s broader approach to technology, AI, and its leadership model. While co-leadership is gaining traction across various sectors, it’s been a mainstay at Permira since Kurt Björklund began co-managing the firm with Tom Lister in 2008. When Lister stepped down in 2021, Permira found itself with only one leader—an unusual scenario for a company that usually adopts a co-head strategy.
“The co-leadership model addresses leadership loneliness. It’s invaluable to have a co-ideator,” Ruder explained. “It speeds up decision-making processes significantly.”
{Brian Ruder}
On September 1st, Dipan Patel joined Ruder as co-CEO, reinstating normalcy at Permira. The new title wasn’t just for show; it aimed to clarify who truly manages operations amid an industry rife with “title inflation.”
Permira’s focus on tech is not new; they’ve consistently targeted this sector due to its growth potential. Since 2008, they’ve invested $28 billion across 80 technology firms, spanning SaaS, cybersecurity, fintech, and online marketplaces.
“We’re growth-centric,” said Ruder. “Tech is predominant in the market; naturally, we’ve become tech-centric over our 40-year history.”
{Brian Ruder}
Despite separating investment strategies by verticals, Permira believes every company today relies heavily on technology. Take Golden Goose, acquired for $1.3 billion in 2020; although not traditionally tech-focused, its shift to direct-to-consumer strategies highlights the role of digital innovation.
“Even non-tech businesses are embracing online avenues significantly,” Ruder noted.
{Brian Ruder}
Adevinta is another major acquisition showcasing Permira’s strategy. Though it operates digital brands globally, running such consumer brands demands expertise distinct from enterprise tech.
“Adevinta houses leading classifieds assets,” said Ruder. “Our plan focuses on optimizing these businesses geographically and vertically.”
{Brian Ruder}
In the realm of AI and cloud computing—two synergistic areas—Permira sees transformative potential akin to past technological shifts.
“AI will drive another leap like cloud computing did,” claimed Ruder.
{Brian Ruder}
Squarespace was already integrating AI tools when Permira acquired it. Despite advisory resistance due to its strong financial performance, Permira increased their bid to $7.2 billion—a testament to the value they see in quality assets rather than distressed ones.
“Our aim is finding best products in good markets,” Ruder emphasized. “We focus on unit economics over short-term EBITDA maximization.”
{Brian Ruder}
