French buyout firm PAI Partners told investors in a letter yesterday it was willing to reduce its fund size by 50%, or about €2bn ($2.9bn), in a marked change in its negotiating position after its heads left the company last month.

The firm had been attempting to limit reductions to its €5.4bn fund to just €1bn in talks with investors following the resignation of its senior partners Dominique Mégret and Bertrand Meunier.