## **THE PERMIRA FOUNDATION** **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** **COMPANY REGISTRATION NUMBER: 10877948** ## **THE PERMIRA FOUNDATION** ## **CONTENTS** ||**Pages**| |---|---| |Reference and Administrative Information|1| |Trustees' Annual Report|2-8| |Independent Auditor's Report|9-12| |Statement of Financial Activities|13| |Statement of Financial Position|14| |Statement of Cash Flows|15| |Notes to the Financial Statements|16-20| |Appendix A|21-22| **THE PERMIRA FOUNDATION** ## **REFERENCE AND ADMINISTRATIVE INFORMATION** Company number: 10877948 - incorporated in the United Kingdom Charity number: 1175061 - registered in England & Wales ## **Trustees** Trustees, who are also Directors under company law, who served during the year and up to the date of this report were as follows: Adinah Ruth Shackleton-Ross Bruce Embley Caroline Elizabeth Carr Olivia Sarah Biggs Paul Richard Armstrong (Chairman) Peter Gerard Flynn ## **Secretary** Peter Gerard Flynn ## **Registered office and operational address** Permira Advisers LLP 80 Pall Mall London United Kingdom SW1Y 5ES ## **Bankers** RBS 250 Bishopsgate London EC2M 4AA RBS International Royal Bank Place 1 Glategny Esplanade St Peter Port Guernsey GY1 4BQ ## **Solicitor** Russell-Cooke LLP 8 Bedford Row London WC1R 4BX ## **Auditor** Sayer Vincent LLP Invicta House 108-114 Golden Lane London EC1Y 0TL 1 **THE PERMIRA FOUNDATION Company Registration Number: 10877948** ## **TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** The Trustees of The Permira Foundation ('' **the Charity** ''), present their Annual Report and Financial Statements (the '' **financial statements** '') on the affairs of the Charity for the year ended 31 December 2020. The Trustees confirm that the financial statements of the Charity complies with the current statutory requirements, the requirements of the Charity's governing document and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing Document** The Charity is a Charitable Company limited by guarantee, incorporated on 21 July 2017 (Company Registration Number: 10877948) and registered as a charity on 10 October 2017 (Registered Number: 1175061). It was established under a Memorandum of Association which established the objects and powers of the Charity and is governed under its Articles of Association. ## **Trustees** The Directors of the Charity are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. The Trustees listed on page 1 served throughout the year unless otherwise stated. The Trustees meet regularly to approve new grants and donations as well as to ensure that previously granted funds have been spent appropriately. Appointment of Trustees is governed by the articles of association of the Charity. The Board of Trustees is authorised to appoint new Trustees. All Trustees have equal voting rights, they do not own shares and have no beneficial interest in the underlying income or assets of the Charity. Induction and training for Trustees is provided through both one-to-one and group sessions with The Foundation Investment Committee, briefings at board meetings and mentoring, as required. Trustees are invited to attend Investment Committee meetings. This allows Trustees to gain a greater operational perspective while increasing their visibility within the wider Foundation Team. ## **Related Parties** As at 31 December 2020 Paul Richard Armstrong was listed as a Trustee of the Charity and Social Business Trust, a charity which received a charitable donation of €179,806 during the year (2019: €256,709), Caroline Elizabeth Carr was also listed as a Trustee of the Charity and Teach First, a charity which received no charitable donation during the current year (2019: €39,600). Conflicted Trustees take no part in decisions to award grants. 2 **THE PERMIRA FOUNDATION Company Registration Number: 10877948** ## **TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Objectives and Activities** The Charity is primarily funded from contributions from Permira partners, employees, alumni and other Permira related parties. The Charity does not currently seek donations from the general public. The Charity's objectives are: - Advance education of young people; - Prevent and relieve poverty; - Advance and preserve good health, and prevent and relieve sickness; - ● Promote social inclusion by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society; and - Relieve those in need by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances. The Charity achieves its objectives through making grants to charitable organisations and social enterprises which work in the above areas. The Trustees have referred to the Charity Commission's general guidance on public benefit when reviewing the Charity's objectives and grant-making policy. Charity Trustees state they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission. ## **Grant making policy** The Charity's Trustees review grant applications received from all charities which meet these criteria and grants are awarded on the basis of the Trustees' evaluation of: the charity's effectiveness in achieving its aims, the number of beneficiaries reached, the sustainability of the charity's programmes, the strength and stability of its management team and internal processes, and the long-term public benefits that would flow from the deployment of a grant from the Charity. ## **ACHIEVEMENTS AND PERFORMANCE** The Charity's main activities and who it tries to help are described below. All its charitable activities focus on supporting the provision of education and training, the advancement of health services and aiming to prevent and relieve poverty. These activities are undertaken to further its charitable purposes for the public benefit. ## **Grants** ## Minds Matter - Granted €54,847 Founded in 1991, Minds Matter is now a network of 14 affiliates across the US, serving more than 750 students a year with over 2,000 volunteers. Minds Matter transforms the lives of accomplished US high school students from low-income families by preparing them for college success. This is achieved by providing access for high achieving students with access to volunteer mentors, writing coaches, SAT tutors and college advisors to navigate the path to college. 3 **THE PERMIRA FOUNDATION Company Registration Number: 10877948** ## **TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31** ## **ACHIEVEMENTS AND PERFORMANCE (continued)** ## **Grants (continued)** ## Social Business Trust - Total granted €179,806 Social Business Trusts' ( **“SBT”** ) mission is to support high growth potential social enterprises to scale-up their impact. This is achieved by investing cash grants and professional support from corporate partners in a carefully selected portfolio of social enterprises. Since 2010 SBT has positively impacted the lives of over 2.4 million people, providing over £20 million worth of cash and in-kind assistance, including 40,000 hours of high-quality business support. ## – RUN Hong Kong Granted €26,276 RUN’s mission is to rehabilitate vulnerable refugees through sport, education and beyond. RUN aims to: rebuild their mental and physical strength, unite them as a community and with the local Hong Kong community and nurture them into a more hopeful future through life skills and education. RUN has served 125 refugees and asylum seekers from 19 countries. ## – New York Opportunity Network Granted €22,476 New York Opportunity Network was founded in the United States in 2003 to create access to college and careers for high- potential students from low-income families and underrepresented communities. It has grown from assisting 10 students from one public high school in NYC, to now supporting 870 in 2018-2019 program year, recruited from over 200 schools and organisations across the city’s five boroughs. Its 'Career Fluency' programme has four pillars: College access and support through the transition to college life; training in professional skills and behaviour; building professional networks; and exposure to over 30 careers, including internships. ## **Liferaft** Covid-19 has continued to have a significant impact on the charities supported by the Charity. The relief fund (project **"Liferaft"** ) has maintained its deployment of grants over the course of the year and built strong partnerships with a number of charities during this time. The individual Permira offices have taken responsibility for proposing charities where they felt the effects of Covid were particularly prevalent in the communities in which they operate. The fund has supported a diverse range of organisations and aimed to broadly ensure that the under-privileged gained access to quality education, housing, nutrition, medical and mental health support. Each office undertook due diligence into many charities before nominating those they felt were most deserving and where we could have the greatest impact. In many cases, we were able to amplify the impact financial grants could have on an organisation, by providing pro-bono and volunteer hours to further support their work. A number of criteria were recommended to the teams, to ensure we were identifying appropriate charities and giving in the most effective way. We have maintained communication with the charities to understand the impact the donations have had and look forward to an on-going relationship and continued partnership with many of them. In total, 150 donations have been made to Liferaft charities totalling €6,470,222. Charities supported by Liferaft are listed in Appendix A. 4 **THE PERMIRA FOUNDATION Company Registration Number: 10877948** ## **TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **FINANCIAL REVIEW** The Charity's principal source of funding is received from Partners of Permira Advisers LLP, Permira Advisors LLC, Permira Advisory Noridic AB, Permira Advisors SAS and Permira Advisers Limited. The Charity does not currently seek donations from the general public. The Charity made commitments of €7,241,156 during the year (note 3), of which €460,866 was payable at the year end. These financial statements reflect the impact of Liferaft, a relief fund temporarily raised to deploy grants to charities which were impacted strongly by Covid-19. Of the total income recognised, €6,695,263 relates to oneoff receipts in relation to Liferaft. Total Liferaft grants of €6,725,005 were made during the year. The remaining donations received and paid, were made in the normal course of the Foundation’s activities. ## **Reserve policy and going concern** The board has reviewed its reserves policy and has adopted a risk-based approach to reserves. The Charity's policy is to hold a level of unrestricted free reserves so that we can: - Manage risk, principally to continuing to support beneficiary charities, should income levels fall; - Manage working capital; - Invest in new activities and develop new initiatives; and - Respond to unplanned events. The Charity's target for unrestricted free reserves is €100k to €200k the higher end of the range included costs for the unlikely event that the organisation was required to close. The actual level as of 31 December 2020 is (€67,469) (31 December 2019: €465,259) per these financial statements. The Charity’s accounting policy described within these financial statements notes that partner donations are recognised as income on a cash received basis, and therefore donations called, but not received, cannot be accrued for as there is no legal obligation for the calls to be paid. The Charity received €189,842 in 2021 (Note 10) in relation to 2020 partner commitments, having made these calls in December 2020. The actual level of funds available to the Charity in relation to 2020 is €122,373. As of 31 December 2020, after taking into account the above, any identified risks, and the allocated funds available, the Trustees are comfortable that the unrestricted free reserves are in line with expectations and will be restored to the minimum requirements in 2021. In addition, the Permira Partners have made a commitment to fund the Charity with a donation of €5m in early 2022. For the same reasons, the Trustees are also comfortable that it is appropriate for the financial statements to be prepared on the going concern basis. As at 31 December 2020, the Charity has committed grants of €203,481 to be paid in 2021. Charitable commitments are entered into based on expected partner donations and actual cash awards will only be made when sufficient cash is available. 5 **THE PERMIRA FOUNDATION Company Registration Number: 10877948** ## **TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## Risk Management The Trustees meet on a regular basis to consider risks facing the Charity. The Trustees ensure that for each risk identified: - Mitigation procedures are developed; - Responsibilities for implementation and review are assigned; and - The status is monitored on a regular and timely basis. The Charity has sufficient expendable funds to meet its foreseeable commitments and the risks associated with governance issues are considered to be low. The Trustees do not award grants before they have the certainty of cash resources available to them. As part of our approach to governance, the Trustees ensure that a monitoring and regular reporting structure is put in place for all major grants awarded. The Trustees consider risks to the business regularly and the board reviews the risk register at least annually. Consistent with our scale and obligations, our aim is to mitigate risk whilst remaining an agile, entrepreneurial, mission and values based organisation. Since inception to 31 December 2020 there were three main areas of work carried out to manage risks to the organisation: ## Embedding the mission, vision and behaviour sets A communications programme was launched across Permira as our principal funder and provider of employee engagement as well as the broader Permira Foundation working group to embed our mission, vision and behaviour sets to help drive mission alignment and high performance. The programme was successful and there has been a marked increase in both the engagement with the Charity and the charities it supports and the level of understanding of the Charity's mission – reflected in the number of charities supported and the time spent by Permira employees on Charity related matters. ## Building a robust governance structure Following incorporation, the Charity has sought to improve its existing governance structures to reflect the increasingly global reach of its operations. Each grant is now supported by a clear agreement with the beneficiary charity as to the purpose of the funding and in some cases performance criteria that need to be met for ongoing funding. The addition of two experienced independent non-executive directors has provided further challenge and oversight to the Charity's activities. In 2019 the Charity provided Permira employees engaged on Permira Foundation matters with one to one training to ensure that good governance and risk procedures were embedded. This training is enforced at regular meetings. ## Protecting the organisation's reputation Given that the Charity receives principally all of its funding from Permira partners, employees, alumni or other Permira related parties, it is key that the Charity does not do anything to adversely impact the reputation of Permira or its portfolio companies. The Trustees remain focussed to ensure that the Charity's operations by a combination of strong diligence, high levels of engagement, good governance policies and Trustee vigilance mitigate this risk. Equally the Charity is independent from Permira and is careful not to have any of its activities associated with supporting Permira or its portfolio companies’ commercial activities – which could adversely impact the charitable status of the Charity. 6 **THE PERMIRA FOUNDATION Company Registration Number: 10877948** ## **TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **FUNDRAISING** The Charity relies almost entirely on the support of Permira partners, employees and alumni for its funding. No external funding is actively sought nor are any professional fundraisers used. There is an annual base level of request that is sent to current participating Permira partners and, accordingly, there is a high level of visibility on funding for that year. ## **FUTURE DEVELOPMENTS** In the year ahead, the Charity will continue to work supporting high-potential charities and social enterprises principally in the youth, health, education and social integration space. The Charity has already made significant contributions to charities across the Permira Funds’ global office network including Asia, a clear focus from 2018. This was achieved through deepening the relationships with the existing Charity portfolio and leveraging of the Permira network to support. Building on our successes to date the Charity will continue to provide non-cash professional support to the portfolio of charities, reflecting the profound engagement with Permira’s partners and employees in the work of the Charity and the underlying portfolio. Given the significant and positive impact that this support is having, and the underlying enthusiasm of Permira partners and employees to continuing this support, the Charity is focused on increasing this form of giving. Accordingly we look forward in 2021 to developing our impact measurement. We anticipate Covid-19 may continue to affect the operating models and growth trajectory of the charities in 2021 and to mitigate against any impact on the existing portfolio there will be a continued focus on Covid-19 related support both financially and through the efforts of Permira partners and employees. ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The Trustees, (who are also Directors of The Permira Foundation for the purposes of Company law) are responsible for preparing the Annual Report and the Financial Statements (the '' **financial statements** '') in accordance with applicable law and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period. In preparing these financial statements, the Trustees are required to: - Select suitable accounting policies and then apply them consistently; - Observe the methods and principles in the Charities SORP; - Make judgements and estimates that are reasonable and prudent; - State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. 7 **THE PERMIRA FOUNDATION Company Registration Number: 10877948** ## **TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES (Continued)** The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at In so far as the Trustees are aware: - There is no relevant audit information of which the Charity's auditor is unaware; - The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. ## **DISCLOSURE OF INFORMATION TO THE AUDITOR** Each of the persons who are Trustees at the time when this Trustee's Report is approved has confirmed that: - so far as they are aware, there is no relevant information of which the Charity's auditor is unaware; and - that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant information and to establish that the Charity's auditor is aware of that information. ## **AUDITOR** The auditor, Sayer Vincent LLP, has indicated its willingness to continue in office. The Trustees will propose a motion to re-appoint the auditor at a meeting of the Trustees. This report was approved by the Trustees on 15th September 2021 and signed on their behalf by: Paul Armstrong Trustee 8 **THE PERMIRA FOUNDATION Company Registration Number: 10877948** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PERMIRA FOUNDATION (CONTINUED)** ## **Opinion** We have audited the Financial Statements of The Permira Foundation (the ‘charitable company’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the Financial Statements: - Give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and - of its incoming resources and application of resources, including its income and expenditure for the year then ended - Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting - ● Practice - Have been prepared in accordance with the requirements of the Companies Act 2006 ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the Financial Statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the Financial Statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the Financial Statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the Financial Statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Foundation's ability to continue as a going concern for a period of at least twelve months from when the Financial Statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. 9 ## **THE PERMIRA FOUNDATION** ## **Company Registration Number: 10877948** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PERMIRA FOUNDATION (CONTINUED)** ## **Other information** The other information comprises the information included in the Trustees’ annual report other than the Financial Statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the Financial Statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the Financial Statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - The information given in the Trustees’ annual report for the financial year for which the Financial - ● Statements are prepared is consistent with the Financial Statements; and - The Trustees’ annual report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - Adequate accounting records have not been kept, or returns adequate for our audit have not been - ● received from branches not visited by us; or - The Financial Statements are not in agreement with the accounting records and returns; or - Certain disclosures of Trustees’ remuneration specified by law are not made; or - We have not received all the information and explanations we require for our audit; or - The directors were not entitled to prepare the Financial Statements in accordance with the small - ● companies regime and take advantage of the small companies’ exemptions in preparing the Trustees’ annual report and from the requirement to prepare a strategic report. 10 **THE PERMIRA FOUNDATION Company Registration Number: 10877948** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PERMIRA FOUNDATION (CONTINUED)** ## **Responsibilities of Trustees** As explained more fully in the statement of Trustees’ responsibilities set out in the Trustees’ annual report, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the Financial Statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the Financial Statements** Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below. ## **Capability of the audit in detecting irregularities** In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following: - We enquired of management and the board of Trustees, which included obtaining and reviewing - ● supporting documentation, concerning the Foundation’s policies and procedures relating to: - Identifying, evaluating, and complying with laws and regulations and whether they were - ● aware of any instances of non-compliance; - Detecting and responding to the risks of fraud and whether they have knowledge of any - ● actual, suspected, or alleged fraud; - The internal controls established to mitigate risks related to fraud or non-compliance with - ● laws and regulations. - We inspected the minutes of meetings of those charged with governance. - We obtained an understanding of the legal and regulatory framework that the Foundation operates in, focusing on those laws and regulations that had a material effect on the Financial Statements or that - ● had a fundamental effect on the operations of the Foundation from our professional and sector experience. - We communicated applicable laws and regulations throughout the audit team and remained alert to - ● any indications of non-compliance throughout the audit. - We reviewed any reports made to regulators. 11 ## **THE PERMIRA FOUNDATION Company Registration Number: 10877948** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PERMIRA FOUNDATION (CONTINUED) Capability of the audit in detecting irregularities (continued)** - We reviewed the financial statement disclosures and tested these to supporting documentation to - ● assess compliance with applicable laws and regulations. - We performed analytical procedures to identify any unusual or unexpected relationships that may - ● indicate risks of material misstatement due to fraud. - In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in - ● making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the Financial Statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the Financial Statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Noelia Serrano (Senior Statutory Auditor) ## 29 September 2021 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL 12 ## **THE PERMIRA FOUNDATION** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020** |**Note**
**Income from:**
Donations
Donations - Liferaft
**Total**
**Expenditure on:**
Charitable activities
3
Charitable activities - Liferaft
3
**Total**
Foreign exchange (losses)/gains
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**
**Net (expenditure)/ income before other recognised gains and**
**losses**|**Year to**
**31 December**
**2020**
**Total funds**
**€**
249,086
6,695,264|**Year to**
**31 December**
**2019**
**Total funds**
**€**
603,192
-| |---|---|---| ||6,944,350|603,192| ||(710,963)
(6,725,006)|(421,572)
-| ||(7,435,969)|(421,572)| ||(491,619)|181,620| ||(41,109)|1,528| ||(532,728)|183,148| ||465,259|282,111| ||(67,469)|465,259| The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure has arisen from continuing activities. All income and expenditure is unrestricted. The notes on pages 16 to 20 form an integral part of these audited financial statements. 13 ## **THE PERMIRA FOUNDATION** ## **STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020** |**Notes**
**Current Assets**
Debtors
7
Cash and cash equivalents
**Creditors**
Amounts falling due within one year
8
**Net (liabilities)/assets**
**Funds**
Unrestricted funds
**Total Funds**|**2020**
**Total funds**
**€**
74,253
386,416|**2019**
**Total funds**
**€**
81,986
401,639| |---|---|---| ||(528,138)|(18,366)| ||(67,469)|465,259| ||(67,469)|465,259| ||(67,469)|465,259| The Trustees have prepared these financial statements in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the financial statements required by the Companies Act 2006 which are for circulation to the Trustees of the Charity. The audited financial statements were authorised for issue by the Trustees on 15 September 2021 and were signed on their behalf by: Peter Flynn **Trustee Company registered number: 10877948** The notes on pages 16 to 20 form an integral part of these audited financial statements. 14 ## **THE PERMIRA FOUNDATION** ## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020** |**Net cash (used in)/provided by operating activities**
Result for the year
**Working capital adjustments**
Increase/(decrease) in debtors
Increase in creditors
**Net cash (used in)/provided by operating activities**
Movement in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**|**Year to**
**31 December**
**2020**
**€**
(532,728)|**Year to**
**31 December**
**2019**
**€**
183,148| |---|---|---| ||7,733
509,772|(48,097)
5,845| ||(15,223)|140,896| ||(15,223)
401,639|140,896
260,743| ||386,416|401,639| The notes on pages 16 to 20 form an integral part of these audited financial statements. 15 **THE PERMIRA FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. General information** The Permira Foundation ('' **the Charity** '') is a charitable company limited by guarantee and is incorporated in England and Wales. The address of its registered office is Permira Advisers LLP, 80 Pall Mall, London, United Kingdom, SW1Y 5ES. The principal activity of the Charity is to act as a charitable foundation focused on the advancement of support and funding to other charities and charitable purposes. ## **2. Basis of preparation** The audited Annual Report and Financial Statements of the Charity (the '' **financial statements** '') have been prepared on a going concern basis and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland ('' **FRS 102** '') and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. In applying the financial reporting framework, the Trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below. ## **(a) Public benefit entity** The Charity meets the definition of a public benefit entity under FRS 102. ## **(b) Going concern** The Trustees believe that preparing the financial statements on a going concern basis is appropriate due to the current financial position of the Charity at the period end, as discussed in the Trustees' Annual Report. The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. ## **(c) Foreign currency** The Charity's functional currency is considered to be Euros ('' **EUR** ''). EUR is considered to be the currency that most accurately reflects the primary economic environment in which the Charity operates. Monetary assets and liabilities denominated in currencies other than EUR are translated at the rates prevailing at the date of the transaction and then converted to the prevailing rate at the Statement of Financial Position date. 16 **THE PERMIRA FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **2. Basis of preparation (continued)** ## **(d) Income recognition policies** - Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. Income received in advance of the provision of a specified service is deferred until the criteria for income recognition is met. ## **(e) Fund accounting** - Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are restricted funds of the Charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Charity's work. ## **(f) Expenditure and irrecoverable VAT** - Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: - Expenditure on charitable activities includes the costs of charitable grants made, in addition to any support and governance costs incurred to further the purposes of the Charity. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. ## **(g) Grants payable** - Grants payable are made to third parties in furtherance of the Charity's objects. Single or multiyear grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the Charity. Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. ## **(h)** ## **Cash and cash equivalents** - Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **(i) Creditors and provisions** Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 17 **THE PERMIRA FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **2. Basis of preparation (continued)** ## **(j) Financial instruments** The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **3. Total expenditure** |**Total expenditure**||||| |---|---|---|---|---| |**Charitable grants**
Minds Matter
Social Business Trust
Run Hong Kong
Centre Saint-Aubain
Liferaft (See Appendix A)
**Support and governance**
Administrative fees
Audit fees
Legal fees
Bank charges
Other professional fees
Interest expense
New York Opportunity
Network|**Charitable**
**grant**
**expenditure**
€
22,476
55,063
383,288
55,323
-
6,725,006|**Support and**
**governance**
**expenditure**
€
159,867
13,681
15,953
5,312
-
-|**Year to**
**31 December**
**2020**
€
22,476
55,063
383,288
55,323
-
6,725,006
159,867
13,681
15,953
5,312
-
-|**Year to**
**31 December**
**2019**
€
22,278
53,367
256,709
28,676
4,100
-
41,726
10,867
-
1,419
2,391
39| ||7,241,156|194,813|7,435,969|421,572| 18 **THE PERMIRA FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **4. Net expenditure for the year** |Auditor's remuneration (excluding VAT)
Foreign exchange (gains)/losses|**Year to**
**31 December**
**2020**
**€**
11,401
41,109|**Year to**
**31 December**
**2019**
**€**
9,056
(1,528)| |---|---|---| ||52,510|7,528| Total audit fees payable to Sayer Vincent LLP for the year ended 31 December 2020 amounted to €11,401 excluding VAT (31 December 2019: €9,056), of this amount €763 (net) was paid on 22 September 2020. ## **5. Related party transactions** As at 31 December 2020 Paul Richard Armstrong was listed as a Trustee of the Charity and Social Business Trust, a charity which received a charitable donation of €179,806 during the year (2019: €256,709), Caroline Elizabeth Carr was also listed as a Trustee of the Charity and Teach First, a charity which received no charitable donation during the current year (2019: €39,600). Conflicted Trustees take no part in decisions to award grants. ## **6. Taxation** The Charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. ## **7. Debtors** |Amounts owed - Gift Aid
The Gift Aid amount was settled on 18 June 2021.
**Creditors**
Trade creditors
Accruals
Accrued donations|**31 December**
**2020**
**€**
74,253|**31 December**
**2019**
**€**
81,986| |---|---|---| ||74,253|81,986| ||**31 December**
**2020**
**€**
30,675
36,597
460,866|**31 December**
**2019**
**€**
-
14,266
4,100| ||528,138|18,366| ## **8. Creditors** 19 **THE PERMIRA FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **9. Analysis of staff costs, trustee remuneration and expenses.** The Trustees of the Charity were neither paid nor received any other benefits from the Charity during the year. No Charity trustee received payment for professional or other services supplied to the Charity. The Trustees did not charge the Charity any expenses in relation to the attendance at meetings of the Trustees during the period. Throughout the period the Charity had no employees. ## **10. Subsequent events** Since year end, the Charity has donated a total of €3,186,180 to charities. The Charity has continued to engage with Permira to raise funds for the purpose of rapidly assisting those who have or will be affected by Covid-19 (project **“Liferaft”** ). Since year end, Liferaft has made 61 additional donations. In 2021, the Foundation received €189,845 in partner donations relating to 2020. ## **11. Legal status of the charity** The Charity is a company limited by guarantee and has no share capital. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. 20 **THE PERMIRA FOUNDATION** ## **APPENDIX A** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Liferaft grants** Appendix A notes all individual charities where a donation of €25,000 of more has been awarded. Within ‘other’, there are 51 charities who received on average, €9,082 per grant. ||**Year to**| |---|---| ||**31 December**| ||**2020**| ||€| |Give Directly|229,274| |Tipping Point Community|226,943| |City Harvest|196,733| |Red Cross|160,492| |Die Arche Frankfurt|150,017| |Saigon Children|150,017| |Institut Telemaque|150,017| |Magic Breakfast|144,654| |Minds Matter NY|117,203| |Teach First|112,451| |Big Issue|111,794| |Refuge|110,933| |Stadsmissionen|110,000| |CRISIS|105,458| |Adream Foundation|104,927| |Fundacion Save the Children|100,017| |Boys and Girls Club|91,736| |Lifemoves|91,709| |Raphael House|91,709| |Trenton Area Soup Kitchen|91,709| |Ali Forney Center|90,777| |Bob Woodruff Foundation|90,777| |HSS|90,777| |World Central Kitchen|90,777| |iCAN|89,783| |Coallition for the Homeless|89,286| |Project Open Hand|89,206| |Re-Engage|86,736| |Fareshare|86,183| |Place2be|84,764| |Social Investment Fund|83,182| |Vacances En Famille|81,844| |Kinder Palliativ Team Sudhessen|80,017| |Caritas|78,220| |Feeding Hong Kong|71,853| |Foodlink|71,831| |Stiftelsen|70,000| |Mothers Choice|69,068| |Fundacion Balia|65,000| 21 ## **THE PERMIRA FOUNDATION** ## **APPENDIX A (continued) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Liferaft grants (continued)** |**Liferaft grants (continued)**
Grandparents Plus
Samaritans
HILS/LILS
Lotus Fund
Just for Kids LA
Impact Hong Kong
Career Ready
Age UK
The Passage
Cruse
Challenge Partners
London Early Years
St. Georges Hospital
Off Road Kids Stifung
Medecins Sans Frontieres
Fondo di Mutuo Soccorso
SOCO
Opportunity Network
Minds Matter San Francisco
Reffetorio Felix
La Casa de Las Madres
CCDOSP Hillsborough Hope
Delancey Street Foundation
Futures Without Violence
Oasis
SF Chinatown CDC
The Arc Tampa Bay
CASA NYC
Silicon Valley Education Foundation
Second Harvest Silicon Valley
Share Our Strength
Florence
Nobel
NPO Florence
Chance for Children
Casa Della Carita
L'abilita
Korea for Hungry
Glassdoor
Pelastakaa Lapset
Cash for Kids
Hertfordshire CO (HILLS)
The Winch
Stifung der Evang
Other|€
63,974
63,687
63,201
60,017
59,223
58,708
57,455
57,102
56,594
55,820
55,734
55,246
54,175
50,017
50,017
50,017
47,844
46,892
46,892
46,848
45,855
45,389
45,389
45,389
45,389
45,389
45,389
44,926
44,785
44,603
44,148
41,741
41,741
41,586
41,585
40,017
40,017
37,657
36,124
30,017
29,612
27,087
25,634
25,017
463,183| |---|---| ||6,725,006| 22