Sagard, the mid-market Franco-Canadian buyout fund, is understood to have agreed to back PAI Partners, the private equity group spun off last year from BNP Paribas, in its €1.24bn ($1.53bn) public offer for French fashion retailing group Vivarte.

It is believed that PAI intends to retain a minimum 50% of the equity of Vivarte and will syndicate the rest of its holding to other private equity houses including Sagard.