Permira Credit is in advanced talks to acquire German tour operator Berge & Meer, in a potential deal that reflects the growing push by private credit lenders to take equity positions in their portfolio companies, according to Bloomberg.

Chief Executive Marcel Mayer said the proposed transaction aims to provide additional growth capital to the business. Permira Credit already holds equity in the company alongside Hamburg-based private equity firm Genui, the firm that acquired Berge & Meer from TUI in 2019. That takeover was financed with a €52m loan from Permira Credit, which acted as the sole senior secured lender.

Private credit firms across Europe are now confronting the first major refinancing cycle since the rise of direct lending. Many lenders, especially those holding sole-lender positions, are opting to convert debt to equity or pursue full takeovers as part of restructuring and growth plans.

Permira Credit notified German merger control authorities on 21 November of its intention to acquire 100% of Berge & Meer Touristik GmbH. The company specialises in packaged round trips and cruises and was formed from two TUI businesses sold to Genui as part of the 2019 transaction.

Berge & Meer was hit hard by pandemic-era travel restrictions and took out loans from KfW and the German Economic Stabilization Fund to manage the downturn. A further €14.1m loan was extended by the acquisition financier to cover accrued interest at a 20% rate, according to 2024 filings. The business has since recovered and is now solidly profitable, Mayer said.

Permira Credit and Genui declined to comment on the potential takeover.

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