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Kodak sells pair of PAI fund stakes

PAI Europe III is fully realised and invested in French dairy products company Yoplait and PAI Europe IV is partially realised.

The Kodak Retirement Income Plan Trust has sold its stakes in PAI Europe 3 and PAI Europe 4, according to UK regulatory filings.

BNY Mellon transferred the stakes as the custodian of Kodak.

Paris-based PAI Partners invests in the food and consumer, retail and distribution, healthcare, business services and industrial sectors. Targeted companies are usually ranked first or second in their sectors or geographies.

PAI Europe III, closed on €1.82 billion in 2002. Limited partners in the fund include Fondinvest Capital, AlpInvest Partners and the Pennsylvania Public School Employees’ Retirement System, according to PEI’s Research and Analytics division.

The fund invested in 14 companies including French dairy product company Yoplait and Italian apparel retailer Gruppo Coin, according to PAI’s website. In May 2013, the fund sealed its final exit, selling FTE automotive to Bain Capital. The fund was generating a 3.3x multiple of capital and a 38.2 percent net internal rate of return as of 30 June 2012, according to documents from PSERS.

PAI Europe IV is a 2005-vintage fund that raised €2.7 billion, according to PEI data. Other LPs in the fund include the Canada Pension Plan Investment Board and Idinvest Partners. Portfolio companies include Swedish specialty chemical additive producer Perstorp and French contracting services company Spie. The fund is partially realised, and was generating a 1.39x MOC and a 9.4% IRR as of 30 June 2012, according to PSERS documents.

PAI declined to comment.

The fund stakes were sold to a slew of private equity funds and separate accounts managed by BlackRock, including: Vesey Street Funds IV and V, BlackRock Private Equity Partners IV and VI, Diversified Private Equity Partners IV and two separate accounts with the New Mexico Educational Retirement Board.

BlackRock declined to comment.

Fort Wayne, Indiana-based pension The Lincoln National Life Insurance Company and Delaware-registered The Equity-Broadway League Private Equity Fund I also purchased portions of the PAI fund stakes from Kodak, according to the UK regulatory filings.

Last month Kodak sold stakes in Bridgepoint Europe II, III and IV to Pantheon. Kodak filed for Chapter 11 bankruptcy in August 2012 and emerged nearly one year later. The American imaging company previously said the Kodak Retirement Income Trust wouldn’t be affected by the bankruptcy. A spokesperson from Kodak wasn’t available to comment by press time.