Graphite Trust buys PAI fund stake

Graphite Enterprise Trust has purchased an additional stake in PAI Europe V for £8.5 million, Secondaries Investor has learned.

Graphite Trust was an existing investor in the fund, according to Tim Spence, a senior partner and finance director at Graphite Capital Management. PAI Europe V raised €2.7 billion in 2008. Other limited partners include the Canada Pension Plan Investment Board and AlpInvest Partners, according to PEI’s Research and Analytics division.

The fund invested in 11 companies in the consumer goods, retail business services and healthcare industries. Investments include R&R Ice Cream, women’s lingerie retailer Hunkemöller, and ground and cargo handling service company Swissport. In addition, the fund has partially realised its investment in IT services company Atos and fully exited Nuance, a travel and duty free retailer. Nuance was sold for CHF 1.55 billion (€2.8 billion; $1.63 billion) in June.

Because of the two exits, 36 percent of the fund has been realised at an average return of more than 2.5x, according to a source familiar with the matter.

PAI declined to comment but has since launched a subsequent Europe-focused fund. PAI Europe VI was nearing €2.5 billion toward its €3 billion target in June, according to Secondaries Investor’s sister publication Private Equity International. 

Graphite Trust is a London listed fund managed by Graphite Capital. The fund purchased the stake from French asset manager La Financière Patrimoniale d’Investissement, which declined to comment.