PAI Partners is a French private equity firm based in Paris. It is one of the oldest firms in the sector, with its origins dating back to Paribas Affaires Industrielles, historically the principal investment arm of Paribas, which started operations in 1872.
PAI manages €25.4 billion of dedicated buyout funds. Since 1994, PAI has completed 65 LBO transactions in 11 European countries, representing over €48 billion in transaction value. PAI has 62 agents from 10 countries and teams in Paris, London, Luxembourg, Madrid, Milan, Munich, Stockholm and New York City.
History PAI was formerly known as Paribas Affaires Industrielles, and was historically the principal investment arm of Paribas. PAI LBO Fund, established in 1998, was the first PAI investment vehicle managing third party capital. Prior to 1998, PAI invested exclusively on the balance sheet of BNP Paribas.
Paribas merged with Banque Nationale de Paris in 2000. In 1993, Amaury de Sèze joined Paribas Affaires Industrielles as chairman and chief executive officer. Under his leadership, PAI developed a strategy in private equity that capitalized on the team's familiarity with industrial sectors.
Paribas Affaires Industrielles led the €610 million buyout of Danone's pasta and condiment unit in 1997, at that time the largest leveraged buyout ever completed in France. The following year, the firm finalized fundraising for its first third party investment fund, raising €650 million of investor commitments. PAI completed a full spinout from BNP in 2000 and the following year raised a new €1.8 billion private equity fund.
In September 2009, Lionel Zinsou became CEO and chairman of the firm. In 2015, Michel Paris became CEO after Lionel Zinsou stepped down to become prime minister in Benin.
In March 2015, PAI raised its fifth LBO fund, PAI Europe VI, reaching €3.3 billion, above the initial target of €3 billion. In September 2017, PAI announced the raising of a seventh investment vehicle: PAI Europe VII. In March 2018, PAI closed their PAI Europe VII fund.
Investment funds
Funds Prior to 1998, PAI made investments via the Paribas Portfolio. The Paribas Portfolio was funded directly from Paribas’ balance sheet, largely unleveraged and comprising 51 investments, all of which have now been realised. Reflecting the broader investment remit of PAI at the time, it included control and non-control investments. Since 1998, PAI has raised five private equity funds, as detailed below: +PAI buyout funds since inceptionFund nameVintageTotal commitmentFocusStatusPAI LBO Fund1998€650 millionBuyoutLiquidatedPAI Europe III2001€1.8 billionBuyoutLiquidatedPAI Europe IV2005€2.7 billionBuyoutLiquidatedPAI Europe V2008€2.7 billionBuyoutExit phasePAI Europe VI2015€3.3 billionBuyoutExit phasePAI Mid-Market2020€918 millionBuyoutInvestment phasePAI Europe VII2018€5.1 billionBuyoutInvestment phasePAI Partners VIII2023€7.1 billionBuyoutInvestment phase
Detailed investments
Historically, PAI managed Paribas's stakes in large food and consumer goods companies across Europe: Royal Canin (European leader in dry pet food), Diana Ingredients (natural food ingredients), Evialis (animal feed), Saupiquet (ready meals), LDC (premium poultry), Navidul (cured ham – Spain), SOS Arana (rice – Spain) and helped them consolidate their respective sector. In 2021 PAI completed its largest ever investment with the $3.3 billion acquisition of Tropicana, Naked and other North American juice brands from PepsiCo. Previous transactions in consumer goods and services, healthcare as well as general industrial companies are highlighted below:
PAI VIII investments Entry Exit Company Name Business description Country Ref.2023UnrealisedAlphiaPet food manufacturerUnited States2023UnrealisedAzetsAccounting, tax, payroll, audit and advirosy services to SMEsUnited Kingdom2023UnrealisedECFHospitality and care equipment distributorFrance2021UnrealisedEuropean Camping GroupOutdoor accommodationFrance2023UnrealisedInfra GroupNetwork infrastructure service providerBelgium2023UnrealisedThe Looping GroupLeisure parksFrance2023UnrealisedNovaTasteTaste innovation and ingredientsAustria
PAI VII investments Entry Exit Company Name Business description Country Ref.2021UnrealisedApaveRisk managementFrance2021UnrealisedApleonaFacility management servicesGermany2019UnrealisedAreasFood and beverage travel retailSpain2020UnrealisedArmacellInsulation and engineered foam productsLuxembourg20182022AsmodeeBoard, card and role playing game publisher and distributorFrance2019UnrealisedEcotoneHealthy and sustainable foodFrance2021UnrealisedEuro Ethnic FoodsGrocery productsFrance2021UnrealisedEuro Camping GroupOutdoor accommodationFrance2022UnrealisedHKARisk mitigation consultancyUnited Kingdom2021UnrealisedPasubioPremium leather for the automotive industryItaly2021UnrealisedSGD PharmaPrimary glass packaging for the pharmaceutical industryFrance2019UnrealisedStella GroupSun protectionFrance2021UnrealisedThe Compleat Food GroupChilled food platformUnited Kingdom2022UnrealisedTheramexWomen's health pharmaceuticalsUnited Kingdom2022UnrealisedTropicana Brands GroupGlobal juices brandUnited States2022UnrealisedVeonetOphthamology clinics platformGermany2019UnrealisedZahneinsDental companyGermany
PAI Mid-Market investments Entry Exit Company Name Business description Country Ref.2020UnrealisedAmplitude SurgicalGlobal surgical technology for lower limb orthopaedicsFrance2020UnrealisedAngulas AguinagaRefrigerated fish and seafood ready mealsSpain2023UnrealisedEuropean Pizza GroupFrozen pizzaGermany2023UnrealisedLa Compagnie des DessertsFrozen desserts supplierFrance2021UnrealisedInterfloraEuropean flower and gife digital platformFrance2021UnrealisedScrignoIntegrated opening solutionsItaly2022UnrealisedUvescoSpanish retail food sectorSpain
PAI VI investments Entry Exit Company Name Business description Country Ref.2018UnrealisedAlbéaGlobal packaging companyFrance20162022Atos MedicalLaryngectomy productsSweden20162019B&B Hotelshttp://www.hotel-bb.com/en/home.htm B&B HotelsBudget hotel chainFrance20142017DomusVihttps://www.domusvi.com/ DomusViElderly careFrance2017UnrealisedELITechDiagnostic equipmentItaly2016UnrealisedEthypharmSpecialty pharmaceuticalsFrance2014UnrealisedEuroMediaGroupTechnical services to the audiovisual industryFrance20142018InnoVista Sensors (formerly CST)Sensors and control productsUnited States20152019Grupo KonectaBusiness process outsourcing and contact centresSpain2014UnrealisedLabeyrie Fine FoodsGourmet foodFrance2018UnrealisedM Group ServicesUK & Ireland infrastructure servicesUnited Kingdom20182022RefrescoBottler of beveragesThe Netherlands20162020RoompotHoliday parksThe Netherlands2017UnrealisedTendamhttps://www.fnlondon.com/articles/cvc-agrees-to-split-cortefiel-with-pai-and-permira-20050722|title=CVC agrees to split Cortefiel with PAI and Permira|last=Dewson|first=Andrew|accessdate=2018-01-25Apparel retailerSpain2014UnrealisedVPSVacant property servicesUnited Kingdom2015UnrealisedYonderlandOutdoor equipment and fashion retailerBelgium2018UnrealisedWorld Freight CompanyAir cargo sales and servicesFrance
PAI V investments Entry Exit Company Name Business description Country Ref.20132017ADB SafegateAirfield ground lightingBelgium20082015AtosIT service providerFrance20102017Cerba European LabSpecialised biology laboratoryFrance2013UnrealisedFroneri (formerly R&R Ice Cream)Take-home ice cream manufacturerUnited Kingdom20112016HunkemöllerLingerie retailerThe Netherlands20132017Group IPHIndustrial supplies distributorFrance20112017KiloutouEquipment rental servicesFrance20122019MarcolinEyewear design and manufacturingItaly20112016SwissportGlobal ground and cargo aircraft handling servicesSwitzerland20112014The Nuance GroupTravel retail and duty-free industrySwitzerland20082017XellaAircrete blocksGermany
PAI IV investments Entry Exit Company Name Business description Country Ref.20052012Chr. HansenNatural food ingredientsDenmark20052017CortefielApparel retailerSpain20052016Global Closure Systems (aka GCS)Plastic closuresFrance20072017Kaufman & BroadDeveloper and builder of homesFrance20052011Kwik-FitAutomotive fast-fitUnited Kingdom20072009MonierRoofing productsFrance20052023PerstorpSpecialty chemical ingredients used for coatingsSweden20062011SpieMultitechnical servicesFrance20062014United BiscuitsBiscuits and snacksUnited Kingdom
Previous investments Amora Maille: Sauces and condiments; acquired from Danone in 1997 sold to Unilever in 1999 Antargaz: Propane and butane provision; sold to UGI Corporation in 2004 Carglass: vehicle glass repair and replacement group Elis SA: Textile rental, hygiene services Gerflor: PVC flooring Groupe Lapeyre: Distribution of construction material Ipsen: Pharmaceutical laboratory VIA-GTI (known as Keolis): Transport; acquired 1995 and sold in 1999 to SNCF Panzani-Lustucru: Pasta and pasta sauces; acquired in 1997 from Danone, sold to Puleva en 2005 Point P: Construction material distributor; Provimi: Animal nutrition Royal Canin: Animal nutrition for dogs and cats, sold to Mars Incorporated in 2002 SAUR: Water distribution, sanitation and waste management services Saeco: Coffee machine manufacturer Vivarte: Shoe and women wear retailer; sold in 2007 to Charterhouse Capital Partners William Saurin: Canned ready meals; sold to Financière Turenne Lafayette (FTL) in 2001 Yoplait: 51% share: Fresh dairy products, sold to General Mills in 2011
Notes and references
External links
PAI partners BusinessWeek Profile "Builder To Sell Water Unit." New York Times, November 16, 2004 Timmons, Heather, Private Equity Investors Are Reshaping the Landscape of European Business. The New York Times, May 5, 2005 IPH shareholders