PAI Management has closed its latest offering PAI Europe III at EURO1.8 billion, exceeding its original target of EURO1.25 billion. The fund is the successor of PAI LBO Fund, raised in 1998, which was fully invested in two and a half years in 12 transactions. The new fund will have a similar focus on leveraged buyout transactions committing between EURO50 million and EURO200 million in European companies. It will also seek selective minority stakes in telecom and information technology companies or medium-sized family-owned companies.
Investors in the new fund have not been disclosed. There are over 50 investors from 14 countries worldwide. All investors from the previous fund have committed to the new fund and over 70 per cent of the money raised is from new investors. Eric Delorme of PAI said: “Market conditions were difficult, but we had a very good response thanks to PAI’s good track record, especially in continental Europe.”
The fund has made five investments so far including the acquisition of Mivisa with Suala Capital Advisers, the largest private equity transaction in Spain in 2001. The fund’s most recent transaction is the EURO1.5 billion buyout of textile rental company Elis for which PAI teamed up with CIBC World Markets and Credit Agricole.
PAI is headed by Maury-Daniel de Seze. Its team of 35 investment professionals is headquartered in Paris with additional offices in Amsterdam, Brussels, London, Madrid and Milan.