The Pennsylvania Public School Employees’ Retirement System’s Board of Trustees committed up to €100 million to PAI Europe VI at its meeting last week, according to a statement on its website.
The final terms of the commitment, PSERS’ fourth with PAI, have yet to be finalised with the retirement system's investment staff and counsel.
PAI Partner’s turbulent recent history has been steadied by the successful exits of several portfolio companies. Since June 2011, the firm has realised investments in six companies whose cumulative returns have generated a 4.2x multiple and 36.2 percent gross internal rate of return, according to PSERS documents.
In 2009, former PAI chief executive Dominique Mégret was ousted from the firm in a move that one limited partner at the time called “internal coup”. Lionel Zinsou, formerly a general partner at private banking group Rothschild & Cie who had joined PAI in July 2008, took on the role of CEO.
Mégret later partnered with former PAI senior partner Bertrand Meunier to form M&M Capital in 2011, though he left shortly afterward to join CVC Capital Partners in March.
Mégret’s departure from PAI forced the firm to reduce its 2008 fund to €2.7 billion from €5.7 billion. LPs approved the reduction with an 81 percent majority vote.
Fund V was generating a net investment multiple of 0.91x and a negative 3.3 percent IRR, according to PSERS documents.
PAI Europe VI, which is targeting €3 billion, will invest in 12 to 15 mid-market European buyouts in the food, consumer, retail, distribution, healthcare, business services and industrial sectors, according to PSERS documents.
PAI has offices in Paris, Copenhagen, London, Luxembourg, Madrid, Milan and Munich. The firm has led 42 buyout investments valued at approximately €35 billion since 1998, according to its website.