Press Release|Funds

KBRA Affirms the A Rating to BNP Paribas' Participation in a Subscription Facility to PAI Europe VII

15 Jan 2025   |   London

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KBRA UK (KBRA) has affirmed the A rating to BNP Paribas' participation in a subscription facility in the form of a committed and secured multi-currency facility (the “Facility”) to the partnerships comprising PAI Europe VII provided by a syndicate of lenders including BNP Paribas. The Outlook is Stable. The rating assigned was requested by BNP Paribas as a participating lender in the transaction. Neither PAI Partners nor any of its associates has requested this report or the rating, and this report has not been prepared for or approved by any of them.

As of July 2024, the Facility size was reduced from €500 million to €250 million and BNP Paribas’ commitment reduced proportionally to €45 million. The Facility has a one-year tenor and is due to mature in July 2025, subject to extensions. PAI Europe VII is a 2018 vintage fund with approximately €5,119 million in total commitments. It is the seventh buyout fund launched by PAI Partners, which focuses on acquiring mid-market companies in Europe with enterprise values between €300 million and €1.5 billion.

PAI Partners is a French private equity firm, originally part of Paribas Affaires Industrielles, which began operations in 1872. The Firm manages more than €28 billion of assets under management, having raised more than €33 billion in capital from investors, including pension funds, insurance companies, governmental organisations, banks, fund of funds and high net worth individuals. PAI Partners has raised third-party funds since 1998, investing €26 billion in buyouts of companies with a combined transaction value of over €70 billion.

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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

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This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA UK

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.

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