KBRA UK (KBRA) assigns a rating to a capital call facility in the form of a master equity bridge facility agreement (the “Facility”) to the partnerships comprising PAI Europe VII (“PAI VII” or the “Fund”). The Facility is provided by a consortium of Lenders including BNP Paribas (“BNPP”). 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. KBRA has assigned an A rating to BNPP’s €300 million pari passu commitment of the €1.5 billion Facility.

The Lenders have a first priority security interest in the uncalled capital commitments of the Fund, including the right to make capital calls under the Fund’s governing documents during an uncured Event of Default. Proceeds from the Facility are primarily used to bridge timing gaps between the acquisition of portfolio investments and the timing of capital calls issued by the Fund to its limited partner (“LP”) investors.

PAI Partners (“PAI”, the “GP”) is a French private equity firm based in Paris, France. It is one of the oldest firms in the sector, with its origins dating back to Paribas Affaires Industrielles, which started operations in 1872. The GP has raised third-party funds since 1998 and manages approximately €17.4 billion of assets. PAI VII is a 2018 vintage fund. The Fund raised approximately €5.1 billion in capital commitments from over 120 investors from 27 countries. The Fund primarily makes control investments in middle-market companies in Europe with enterprise values between €300m and €1.5bn.

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Disclosures

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.

Information on the meaning of each rating category can be located here.

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) is a full-service credit rating agency 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 pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency UK is located at Augustine House, Austin Friars, London, EC2N 2HA, United Kingdom.

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