CVC raises Europe's largest ever buyout fund, securing EUR 26bn for ninth vehicle

Harriet Matthews
20 July 2023

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London-headquartered CVC Capital Partners has raised EUR 26bn for its ninth flagship fund, with the final close marking the largest ever buyout fund raised to target the European market, according to Unquote Data.

The fund surpassed the record amounts previously raised by the likes of Advent International, Blackstone, Apollo and Hellman and Friedman.

The vehicle was launched in January 2023 and surpassed its EUR 25bn target, according to a statement. A Luxembourg vehicle for the fund was registered in October 2022.

The GP held a final close for its eighth fund in 2020 on EUR 22.3bn. The fund invested in deals like the EUR 4.5bn carve-out of Unilever's tea division, Eketerra, as well as the GBP 1bn buyout of vet clinic chain Medivet, which saw Inflexion realise a minority investment.

CVC, which was previously reported to be considering an IPO, has more than EUR 140bn in AUM globally across its strategies, which include credit and growth. Of this, its Europe/Americas buyout strategy comprises EUR 64bn, according to its website. It acquired Glendower Capital in 2021, thereby adding secondaries to its roster.

As reported, GPs raising multi-billion vehicles have propelled the aggregate volume of private equity fundraising in Europe in 2023 to date. The fresh fundraise gives a 25% boost to the capital raised by buyout and generalist funds in the European market, bringing the total to more than EUR 127bn, versus EUR 141bn in the same period last year, according to Unquote Data.

The number of funds that held closes in 1H 2023 is down on 1H 2022 by more than a third, however, according to Unquote Data, with many managers widely acknowledged to be struggling to fundraise, and flattening their targets, as large funds hoover up LP commitments and attention.

CVC's latest fundraise has proven that it is still possible to raise large swathes of capital in a tough environment, but all eyes will be on how, when and where the GP will deploy its fresh haul.

Investors
The fund's LP base is made up of new and existing investors, the firm said in a statement. Its LPs include Oregon Investment Council (OIC), which committed EUR 300m to the vehicle, according to Unquote Data.

LPs in the firm's previous fund include California Public Employees Retirement System (CalPERS), which committed EUR 750m to the fund. According to CVC's website, 41% of the commitments for the fund came from North America, with 23% from Europe, 20% from Asia, 13% from the Middle East, and 3% from Latin America. Pension funds accounted for 38% of its commitments, with sovereign wealth funds contributing 18% and financial institutions comprising 14%.

Investments
CVC Fund IX will make investments in Europe and the US. The GP's funds typically make 30-40 investments, deploying equity tickets of EUR 100m-EUR 1bn, according to Unquote Data.

The firm's recent investments include the EUR 1.5bn buyout of Denmark-based transport and logistics provider Scan Global Logistics from AEA Investors.

The GP is holding informal discussions with advisers about the possible IPO of Germany-headquartered beauty group Douglas, according to Unquote sister publication Mergermarket. Further exit candidates in its portfolio include UK-based IT training provider QA, which is expected to undergo a refinancing ahead of a sale, Mergermarket reported.

People
CVC Capital Partners – Rob Lucas (managing partner).