CPPIB, PDM Stung as Major European Direct Lending Deal Fails

Canada Pension Plan Investment Board and Permira Debt Managers lead a group of private creditors facing major losses with the unravelling of one of the largest direct lending deals in Europe in recent years.

Last week’s sale of Dutch communications firm Getronics BV to GSH Private Capital saw more than 80% of the company’s debt converted into equity-like instruments or written off. That debt, which was part of the money put in place by CPPIB and PDM in 2018, stood at 350 million euros ($410 million) before the sale, according to people familiar with the matter.

While Europe’s non-bank lenders ...