French private equity firm PAI Partners has successfully raised €7.1 billion ($7.6 billion) for its latest fund, PAI Partners VIII. The fund, which surpassed its target of €7 billion, will focus on investing in 'real-economy' companies in Europe and North America. This new fund is about 40% larger than its predecessor and has attracted capital from new investors in North America and the Middle East, as well as strong participation from existing investors. PAI Partners is well-known for its expertise in carve-outs from large corporates and has already invested approximately 35% of the fund in various companies. This fund is the third-largest raised by a European buyout firm this year. PAI Partners is optimistic about the deal environment for the upcoming year and expects larger deals to be possible.
American Securities, another private equity firm, is raising $7 billion for its latest flagship fund, American Securities Partners VIII. The fund will focus on making control investments in North American companies across various sectors. American Securities has a track record of successful investments and has raised significant capital in the past. The firm typically invests in companies with strong growth potential and works closely with management teams to drive operational improvements. The fundraising for American Securities Partners VIII comes at a time when private equity firms are experiencing strong demand from investors. The fund is expected to attract interest from institutional investors, including pension funds, endowments, and sovereign wealth funds. American Securities plans to use the capital raised to make long-term investments in companies and support their growth strategies. The firm has a disciplined investment approach and seeks to create value by implementing operational enhancements and strategic initiatives.
Blackstone, the world's largest alternative asset manager, has closed its eighth real estate secondaries fund, Strategic Partners Real Estate VIII L.P., at $2.6 billion. Blackstone Strategic Partners, launched in 2000, has $68 billion of investor capital under management and is a leader in illiquid fund investing. The firm offers solutions across illiquid asset classes, including LP liquidity solutions and GP-focused solutions. Blackstone sees significant opportunities in the real estate secondaries market.
An Asia-focused infrastructure fund called Seraya Partners Fund I has raised $800 million from investors, including BlackRock Inc. and Alberta Investment Management Corp. The fund, set up by a Singapore-based private equity firm, has closed above its $750 million target. Other investors include insurers, European family offices, and sovereign wealth funds from Singapore, South Korea, and North America. Despite risks like geopolitical tensions, investors are attracted to the region as infrastructure deals are trading at about half of US and European valuations. Seraya Partners is one of several firms capitalizing on the growing interest in infrastructure investments in Asia. The fund has earned a gross percentage return in the low 20s so far. James Chern, the managing partner and chief investment officer of Seraya Partners, believes there is a golden period of at least a decade for infrastructure investments in the region. He notes that there are only a handful of infrastructure-focused funds in Asia compared to hundreds focused on areas like property and venture capital.
PAG, a private equity firm, has secured a $100 million capital commitment from the Teacher Retirement System of Texas (TRS) for its latest opportunistic real estate fund, Secured Capital Real Estate Partners VIII. TRS manages $187 billion in assets on behalf of public education workers in Texas. The fund will focus on high-yielding real estate projects across Asia, with a particular focus on commercial properties in Japan. PAG had previously received commitments from TRS for two other opportunistic real estate funds. PAG manages $55 billion in assets on behalf of nearly 300 global institutional investors.
Kentucky Public Pensions Authority (KPPA) has approved a $175m initial capital investment for a new separate account managed by Saba Capital Management. The separate account will target undervalued, closed-end limited partnerships in real asset funds like utilities, energy, and infrastructure, currently trading at a 15% discount to their net asset value, aiming for a net return between 8% and 12%. The investment is subject to an investment management agreement between the parties. This marks KPPA's initial venture with Saba Capital.
Public Policy Holding Company (PPHC) has acquired Lucas Public Affairs (LPA), a California-based public affairs firm, for an initial consideration of $7.5 million. LPA, founded in 2006, is led by Donna Lucas, CEO, and Cassandra Pye, President, and has 28 full-time employees. The acquisition expands PPHC's presence in the California market and is in line with its growth strategy. LPA will retain its brand identity and management team as a wholly-owned subsidiary of PPHC. The initial consideration was funded 80% in cash and 20% through the issuance of new common shares in PPHC. Further earnout payments are contingent on LPA achieving profit growth between 2024 and 2028. The acquisition is immediately accretive to PPHC's underlying earnings. LPA recorded net revenues of $6.5 million for the year ended December 31, 2023. PPHC has also entered into a $13.0 million credit facility to fund the cash element of the initial consideration.
Sources:
- BNN Bloomberg
- Private Equity International
- Pulse 2.0
- BNN Bloomberg
- Nikkei Asia
- Mingtiandi
- Citywire
- IPE Real Assets
- ShareCast