Permira Debt Managers is in talks with investors about raising its largest-ever direct lending fund, according to a person familiar with the matter.

The vehicle, which will be the Permira affiliate’s fourth direct-lending fund, is targeting some €2.5bn ($2.83bn) to invest in companies throughout the UK and continental Europe, the person said. Its predecessor, Permira Credit Solutions III, closed with about €1.7bn, above a €1.5bn cap, in June 2017.