CVC closes tech growth fund on $1bn

CVC submitted a filing for the new fund on the US Securities and Exchange Commission (SEC) in mid-2014, which revealed the fund was domiciled in Jersey, but fundraising started in the first half of 2015. No placement agent was mandated as part of the fundraising process, unquote" understands.

The fund originally launched with a target of $750m. CVC stated it exceeded this target; including a side-car co-investment vehicle, total commitments reached $1bn at final close.

The latest vehicle adds to CVC's assets under management, which were significantly boosted following the fundraise of the firm's latest flagship buyout vehicle: CVC closed its sixth fund, CVC Capital Partners VI, on €10.5bn in mid-2013. The successful close came after only sixth months on the road.

Investors
The LP base for CVC Growth Partners consists of investors from CVC's existing global investor pool, unquote" understands.

Investments
CVC Growth Partners will invest in high-growth mid-market businesses with a technology angle, in both Europe and the US. The fund will deploy equity tickets in the $50-200m range and will aim to complete 10-12 investments over the next five years.

The sectors considered will include software, software-as-a-service, managed services, cloud computing, mobility, payments, security, financial technology and healthcare information technology.

The vehicle has already made two investments, including one in Europe. In early 2015, CVC acquired Wireless Logic, a UK provider of machine-to-machine services, from ECI Partners via the new fund. The deal allowed ECI to reap a 6.1x multiple on its investment.

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

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