PAI finalises Landmark-backed single asset restructuring on Fund IV

PAI Partners has completed a restructuring on its fourth flagship fund and will transfer the last remaining asset into a new continuation vehicle.

Swedish chemical manufacturer Perstorp will move from the €2.69 billion 2005-vintage PAI Europe IV into a fund managed by PAI and backed by Landmark Partners and other co-investors, according to a statement. As part of the deal, the new backers will commit around €130 million for additional investment into the portfolio company.

The process was first reported by Secondaries Investor in July.

“This transaction represents a new phase of the development of Perstorp, with additional financial means to support its future development,” Fabrice Fouletier, partner at PAI, said in the statement.

Terms of the deal were not disclosed.

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).

Perstorp employs 1,500 people across manufacturing units in Asia, Europe and North America, the statement noted. In 2017, the company’s EBITDA excluding non-recurring items rose 20 percent to a record-high SKr2.1 billion. It had generated SKr2.3 billion of EBITDA for the 12 months to 30 June.

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.

Landmark Partners is currently in market seeking $4 billion for its sixteenth flagship secondaries fund. The fund has been in market since May 2016, according to PEI data, and had raised $2.42 billion by mid December, Secondaries Investor reported.

– Rod James & Adam Le contributed to this report.