PAI gets go-ahead to reopen buyout fund

PAI Partners, France's biggest private equity group, has got the go-ahead from investors to reopen a buyout fund, but on a more modest scale and with governance that is more favourable to them, a source told Reuters.

"It's 100 percent certain, the buyout fund is going to reopen, we're off again" said the source close to the matter.

The Fifth buyout fund, which has already invested 900 million euros in IT services company Atos Origin and construction materials manufacturer Xella, will be reopened but cut in half to 2.7 billion euros.

The agreement turns the page on a bust-up between the fund and its investors that followed the loss of 256 million euros invested in Monier and the surprise early departure of PAI president Dominique Megret.

PAI declined to comment on the information but said it would make a statement later on Friday.