PAI Partners is targeting EUR 7bn for its ninth flagship fund, broadly in line with its last vehicle, five people familiar with matter said.

The GP has been expected to start normal fundraising by later this year, as it continues to deploy from the current fund, as reported.

Predecessor flagship vehicle PAI Partners VIII raised around EUR 7.1bn in 2023, which drew in a re-up rate of approximately 90% and more than EUR 2bn capital from new investors, as announced.

Despite the challenging fundraising environment, Fund VIII was approximately 40% larger than its predecessor PAI Europe VII, which closed at EUR 5.1bn in 2018, per the same announcement.

While GPs have typically sought to raise larger successor funds in bullish markets, many are taking a more conservative approach to sizing their next vintage.

Higher-for-longer interest rates, geopolitical shocks, and a prolonged slowdown in exits have extended both holding and fundraising periods for managers, prompting some market participants including Hamilton Lane to argue that the most disciplined GPs will resist pursuing growth for growth’s sake.

PAI is also working on a new multi-asset CV which will include French TIC company Apave, as reported.

The GP has executed a few multi-billion-euro CV transactions, most notably for Froneri and Marcolin. Recent exits include Uvesco and World Freight Company.

With a pan-European focus, PAI has a presence in London, Luxembourg, Madrid, Milan, Munich and New York, and manages around EUR 25bn in AUM, per its website.

The investor focuses on real-economy sectors with four primary pillars including food & consumer, business services, industrial goods & services, and healthcare, its website states.

PAI declined to comment.