Exclusive: PAI collects €3bn for Fund VI

The Paris-based firm has stopped fundraising and is wrapping up the legal paperwork

PAI Partners has reached its €3 billion target for Fund VI, according to several sources familiar with the matter.

The pan-European firm has wrapped up fundraising and is finalising all the necessary legal paperwork ahead of a final close, the sources said. This process will be finalised by March, one of the sources added.

The fund, which is oversubscribed, came to market in early 2013. The vehicle held a €1.4 billion first close in January 2014, before holding a second close of approximately €2.5 billion last summer. By November, the firm had amassed approximately €2.8 billion.

It is unclear what the LP breakdown will be, but existing investors were increasing their allocations by 30 percent on average, PEI reported last year.

Rede Partners is placing the fund. Both Rede and PAI declined to comment on fundraising.

PAI’s Fund VI has already made six investments including DomusVI, a French nursing home business, which it acquired in June. It also purchased Labeyrie Fine Foods (LFF), a French food business from Paris-based buyout firm LBO France in a deal worth €590 million as well as the European division of VPS Holdings, a security provider for empty homes and properties, from London-based TDR Capital. In April, PAI teamed up with The Carlyle Group to acquire Custom Sensors & Technologies, a business unit of French-based Schneider Electric in a $900 million deal.

As well as investing its new fund, PAI has secured a number of exits recently. In November, PAI and The Blackstone Group sold United Biscuits, an international biscuit maker to Yildiz Holding, a Turkish food manufacturer for more than £2 billion (€2.56 billion, $3.2 billion), netting a 3.7x return for PAI’s €2.7 billion Fund IV, a 2005-vintage.

In June, PAI sold its stake in the Nuance Group, a duty free travel retailer, to Dufry, a rival global travel retailer for CHF 1.55 billion (€1.27 billion, $1.73 billion), netting PAI a return of 3x. In late 2013, the firm also partially exited its share in IT services company Atos. Together, the two exits generated an average return of more than 2.5x.

PAI typically acquires majority stakes in medium to large-sized European companies in the business services, food and consumer good, general industrials, healthcare and retail & distribution sectors. It writes equity tickets of between €100 million and €300 million.