It has already enlarged Stabilus with the recent acquisition of LinRot Holding. LinRot is a developer and manufacturer of linear and rotational drive units.
Schwarz confirmed that Paine & Partners will continue to expand Stabilus through add-on purchases.
He said Paine itself plans to buy another German company because the nation's businesses are often market leaders in their respective niche with strong technologies and good management.
The investor is currently pursuing takeovers out of its third fund, which has US$1.25bn in assets.
About half of the fund's money is already invested and the buyout firm aims to finance two or more takeovers with the remainder, Handelsblatt reported.
Paine acquired Stabilus, which makes suspensions and locks for cars, for more than