CVC closes Fund VII on €15.5bn hard-cap

Oscar Geen
01 June 2017

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CVC Capital Partners has held a final close for its European and North American private equity fund, CVC Capital Partners VII (Fund VII), on its €15.5bn hard-cap.

The fund originally targeted €12.5bn and had a hard-cap of €15bn when it was announced in November 2016.

CVC and its employees will also make commitments, bringing the total equity capital available to €16bn. It is not clear whether these contributions will be invested through the fund or structured as co-investments.

The fund's predecessor, CVC Capital Partners VI, closed on €10.9bn in June 2013, surpassing its €9bn target. It is currently approximately 57% deployed, according to unquote" data.

Fund VII has not yet made any investments. The minimum return target is 20% IRR with a gross multiple target of 2x.

Investors
The names of LPs in the fund have not been disclosed. However, according to unquote" data, five US pension funds have committed to the vehicle. The largest commitment is $200m from LA County Employees Retirement Association with $100m each coming from New Jersey Division of Investment and Public Employees Retirement Association of New Mexico. Maine Public Employees Retirement System and California Public Employees Retirement System also committed capital.

Investments
The fund is expected to make around 30 investments of between €100m-1bn, with a sweet spot of €300-500m, in companies with enterprise values of €500m-5bn. It will invest in European and US-based companies with the split said to be at 75/25 in favour of Europe. No single investment may be greater than 15% of the fund.

People
CVC Capital Partners – Steve Koltes (co-chair).