PAI closes EUR5.4bn continental Europe fund

01 June 2008

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Fund

PAI partners has held the final close of its new fund, PAI Europe V, on EUR5.4bn. PAI Europe V is the largest ever fund raised in continental Europe. The initial private placement memorandum was sent out in July 2007 and the fund had a tentative target of EUR5bn, twice the size of its predecessor PAI Europe IV. The previous fund held its final close three years ago and is now fully invested with PAI Europe V poised to take over with its first investment. SJ Berwin provided legal advice for the European aspects of the fund while Weil Gotshal & Manges did so on the US side. UBS acted as placement agent.

Investors

The fund received commitments from 130 investors from 23 countries, of which 60 were new investors. PAI's existing investors committed over 70% of total subscriptions representing on average a 1.7x increase on previous commitments. Geographically 63% of the total investment came from Europe, 23% was from North America and 11% came from Asia and the Middle East. Investors include AXA, BNP Paribas, New York Life and CCP.

Investments

PAI will continue to follow its strategy of seeking controlling equity investments in LBO deals with a preferred transaction value situated between EUR500m-EUR3bn. Additionally PAI will offer a deal-by-deal opportunity for its LPs to co-invest alongside the fund favouring this approach over other types of co-investments. Target companies will be European-based medium to large sized public or private companies, belonging to the services industry or the consumer and capital goods industries.

People

PAI Europe V will be deployed by a team of 50 professionals led by 18 partners headed up by Dominique Megret. The investment team spans PAI's offices located in Paris, London, Madrid, Milan, Munich and Luxembourg. Martin Voelker worked as the placement agent for UBS. Michael Halford and Nathalie Duguay led the legal team at SJ Berwin, while Jeffrey Tabak headed the legal side for Weil Gotshal & Manges.

Name: PAI Europe V

Closed on: EUR5.4bn

Focus: Buyouts

Contact

Dominique Megret

Address

PAI Partners

43, avenue de l'Opera

75002 Paris

France

Tel: +33 1 55 77 91 01

Fax: +33 1 55 77 91 43