CVC closes second growth fund on $1.6bn

Alessia Argentieri
14 November 2019

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CVC Capital Partners has closed its second growth vehicle, CVC Growth Partners Fund II, on $1.6bn, including a sidecar co-investment vehicle.

Launched in August 2018 with a $1bn target, the fund held a first close in August 2019 on $1.048bn, raising commitments from 23 investors.

The vehicle targets mid-market technology businesses and intends to pursue the same investment strategy as its predecessor, CVC Growth Partners Fund I, which closed on $1bn in February 2016, exceeding its $750m target, and is currently 92% deployed. Recent investments from Fund I include US-based identity marketing company SheerID; Tel Aviv-headquartered digital advertising specialist IronSource; and cloud-based financial administration specialist Vitech.

CVC Growth Partners Fund II intends to achieve a 20% gross return and a 2-3x gross multiple.

Citi Private Advisory acted as placement agent for the fund.

Investors
CVC Growth Partners Fund II has a global investor base, spread across North America, Europe, the Middle East and Asia. Most of the LPs from the previous vehicle re-upped to this new fund, in addition to several new investors that committed for the first time to CVC's growth fund series.

Investments
CVC Growth Partners Fund II invests in high-growth, mid-market technology companies operating in the software and technology-enabled business services sectors, primarily focusing on software, managed services, cloud computing, payments, security, financial technology and healthcare information technology.

It targets majority and minority stakes in businesses based in North America and Europe, and deploys equity tickets in the $50-250m range.

People
CVC Growth Partners – John Clark (managing partner).