French private equity firm PAI Partners has raised €2.7 billion ($3.4 billion) in its latest fund, PAI Europe IV. A considerable amount of t...

French private equity firm PAI Partners has raised €2.7 billion ($3.4 billion) in its latest fund, PAI Europe IV. A considerable amount of the money has come from high net worth individuals and family offices, according to the firm.

PAI Europe IV—the largest private equity fund to date in continental Europe—highlights a growing trend toward establishing super-large funds, such as the $10 billion one recently raised by US private equity house The Carlyle Group, in order to pay for ever bigger deals.

Around 85 separate groups, including family offices, foundations and HNWIs—invested in PAI Europe IV, of which 40 were repeat investors who contributed a significant proportion of the fund. About 55 per cent of the investors were European, while 32 per cent were North American and 13 per cent from Asia and the Middle East.

Around half of the fund will be invested in France, and between 10 per cent and 15 per cent will be invested in Spain, Italy and the UK. The rest will be used to fund deals in Germany, Belgium and the Netherlands, according to PAI Partners.

PAI Partners, formerly the investment arm of French bank BNP Paribas, focuses on a number of major sectors, including consumer goods, as well as industrials, such as packaging and automotive parts.