Paribas Affaires Industrielles (PAI), the private equity subsidiary of BNP Paribas, is on the point of closing its latest leveraged buy-out (LBO) fund at €1.8bn ($1.6bn), €550m higher than the initial target when the fund was launched in February 2001.

PAI Europe III will be the biggest LBO fund ever raised by a French private equity house. PAI confirmed market speculation over the past few months that it was hoping to close the fund at this level. The imminent closing demonstrates strong investor appetite for the asset class in France as well as a vote of confidence for company's team of 15 partners led by Amaury-Daniel de Seze, chief executive and chairman of PAI.