FRANCE - PAI Partners revives latest buyout fund

Investments from the vehicle had been frozen following the departure of chief executive Dominique Megret and his right hand man, Bertrand Meunier, which triggered the key man clause, allowing investors to suspend or potentially end their commitments.

Originally, PAI Partners had offered investors to reduce the fund by 20-40%, although LPs are said to have insisted on the return of up to 50% of undrawn commitments in order to allow the French buyout house to begin investing again.

In the end, extra concessions on fees and corporate governance swayed two-thirds of investors in the fund to support the restructuring and to restart the shrunken fund. The percentage of investor votes required to terminate the vehicle was lowered from 80% to 60%. Additionally, PAI is said to have agreed to pass on 100% of fees to LPs, with the exception of its management fee.

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