PAI closes latest buyout vehicle above target on Eur 1.8bn

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PAI Management has closed its buyout fund PAI III on EUR 1.8bn, surpassing its original target of EUR 1.25bn. The fund was placed by Credit Suisse First Boston (formerly DLJ). The final closing follows on from the spin-out of the PAI team from BNP Paribas. The majority of the investments in the new buyout fund have come from institutions, with BNP Paribas itself providing a EUR 250m investment. One of the investors in the fund, the Canada Pension Plan Investment Board, provided a EUR 100m commitment. Around 50% of commitments to the fund came from institutions in North America, while the balance was provided by European and Asian investors. PAI III will focus on businesses in two main sector areas: general industrials and consumer services. It will also invest in distribution, food and beverages, media, communications, engineering, pharmaceuticals and healthcare. PAI will target companies in France and Western Europe, especially Spain, Italy and the Benelux, which it sees as promising areas. It may also look to invest in the UK and Switzerland. The new vehicle is expected to make 10-18 investments in companies valued at EUR 500m-l.5bn. PAI is headquartered in Paris with local teams in Milan and Madrid, as well as offices in London, Brussels and Amsterdam. PAI has been active in Spain, completing the Mivisa Envases deal, alongside Suala Capital.