PAI in the sky
Paris-based PE firm, PAI Partners, has squeezed out an impressive EUR7.1 billion from investors for its eighth buyout fund, exceeding its EUR7 billion target when it began fundraising at the start of last year. Investors have responded positively to PAI’s focus on acquiring businesses through complex carve-outs. The first one being Tropicana Brands, a juicy $3.3 billion deal that it acquired from PepsiCo two years ago. Existing investors account for around EUR2 billion of the assets raised…will this latest fund prove to be the eighth wonder of the world? While GPs are being squeezed on valuations – the average global buyout deal was 12.9x EBITDA last year – the new fund will allow PAI Partners to continue to seek out businesses, which, over the last decade, have come in at 11 to 11.5x on average. All in all, a pretty good PAI day for the firm.