Cinven's sixth buyout fund holds final close on €7bn

Kenny Wastell
29 June 2016

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Cinven has held a final close for its sixth fund on its тЌ7bn hard-cap after just four months on the road.

The vehicle surpassed the total raised by its predecessor, which held a second final close on €5.3bn in June 2013, having originally closed on €5bn three months earlier.

Cinven has recouped €5.7bn from exits since December 2014 and recently made its final exit from listed telecoms business Altice. The investment saw it realising a net capital gain of €1.7bn after an 11-year tenure, reaping a 4.7x money multiple and IRR of 157%.

Investments
The fund will have a generalist remit, investing €150-600m in management buyouts and management buy-ins across Europe, the US and Asia.

The GP focuses on investments across six sectors: business services, financial services, healthcare, industrials, consumer, technology, media and telecommunications. According to unquote" data, the support services sector has accounted for 19% of the GP's deal volume over the past five years, with software and computer services accounting for 11%. The firm recently took part in the €1.2bn MBO of Spanish travel service provider Hotelbed Group.

Cinven typically supports buy-and-build growth strategies, with portfolio companies of its fifth vehicle having made around 40 acquisitions to date.

The private equity house confirmed the latest fund will have a typical holding period of four to six years.

Investors
Cinven stated the fund received strong support from existing LPs, with a re-up rate in excess of 90%. The GP also confirmed there was significant new investor demand.

According to unquote" data, Oregon State Treasury committed €100m to Sixth Cinven Fund with Oregon State Treasury committing €250m and Washington State Investment Board committing $307m. In total, Cinven has more than 150 institutional investors from 22 countries.

People
Cinven – Stuart McAlpine (managing partner); Alexandra Hess (partner).