PAI looks to step up fundraising(2)

Last week’s €12.8bn bid for tobacco group Altadis was a declaration of intent by French firm PAI to join the mega fund elite. Its latest fundraising will reportedly target up to €7bn.

PAI Partners, the French private equity firm, is looking to raise up to €7 billion (£4.8 billion) for its latest buyout fund, according to a report in today’s UK paper the Daily Telegraph.

If successful PAI would be the latest firm to take advantage of heavy investor appetite and frothy fundraising market conditions to double its fund size. It closed its last fund on €2.7 billion.

PAI’s compatriot private equity firm Activa Capital revealed last week it was to raise the maximum size of buyouts it will pursue after closing its second fund on €315 million, at almost twice the size of its first.

Sun Capital Partners, a turnaround private equity manager, closed its latest fund on $6 billion, a 300 percent increase on its previous outing; while Coller Capital, a secondaries manager, also moved up to $4.5 billion from $2.5 billion in a single generation of fundraising.

PAI has closed three buyout funds worth a combined $6.05 billlion since it was spun off from French bank BNP Paribas in 2002. It was number 35 in the PEI 50, a ranking of the 50 largest direct investment private equity programmes published by our sister title Private Equity International. Click here for a copy.

PAI flagged its intentions to join Europe’s buyout mega funds last week, when it teamed up with fellow buyout firm CVC Capital Partners to make a €12.8 billion offer for Franco-Spanish cigarette group Altadis.

PAI was not available for comment.