PAI explores single-asset secondaries process on Fund IV – exclusive

PAI Partners is running a secondaries process to move the remaining asset in its 2005-vintage fund into a continuation vehicle, Secondaries Investor has learned.

The Paris-headquartered buyout firm wants to move Swedish chemicals maker Perstorp from its €2.69 billion PAI Europe IV fund into a new vehicle managed by PAI and backed by secondaries capital, according to three sources familiar with the matter.

Investors have approved the process and PAI is seeking a syndicate of buyers to back the vehicle, two of the sources said.

It is understood that PAI is not using an advisor on the transaction.

PAI acquired Malmo-headquartered Perstorp, which produces chemical additives for the resins and coatings industry, in December 2005, according to PAI’S website. Its value at acquisition was SKr9.2 billion ($1 billion; €873 million).

Limited partners in PAI IV include Pantheon, Quilvest Private Equity, Blackstone Strategic Partners and Willowridge Partners, according to filings with the UK’s Companies House.

Stakes in PAI IV changed hands in January when the pension fund of bankrupt camera giant Eastman Kodak Company sold a portfolio of stakes to Pomona Capital, UK regulatory filings show.

Paris-headquartered PAI is investing its PAI Europe VII vehicle which closed in March on €5 billion, exceeding its €4 billion target, according to PEI data.

The deal is the latest in a string of single-asset fund restructurings. The average secondaries buyer completed between three and four such deals last year, according to research by Campbell Lutyens.

PAI declined to comment.