Exclusive: PAI seeks to increase hard-cap on Fund VI

The Paris-based firm has made the move in order to satisfy investor demand

PAI Partners is looking to increase the hard-cap on its €3 billion Fund VI, PEI has learnt.

The pan-European firm told investors on Tuesday that is seeking to increase the vehicle, which is oversubscribed, to €3.2 billion in order to satisfy investor demand, according to a source familiar with the matter.

PAI declined to comment.

The proposed increase comes after PAI’s Fund VI reached its €3 billion hard-cap last week, PEI revealed at the time. The vehicle is no longer officially in market. PAI is currently completing all the necessary legal paperwork ahead of a final close. This process will be finalised by March.

PAI’s Fund VI 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.

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

PAI’s Fund VI has already made six investments the last of which was the acquisition of VPS Holdings, a security provider for empty homes and properties from TDR Capital.

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.