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CVC Capital Partners expands operations
CVC Capital Partners has raised €4.6 billion for its third fund. The fund focuses on the management of long-term private equity strategies. The deal signals a resurgence of activity in the European market after a period of decline.
The size of the new CVC Strategic Opportunities III fund is similar to the one that closed in 2019. Its strategy is to hold capital for 6 to 15 years. This is significantly longer than the traditional timeframe for the sector. Most private equity funds hold investments for around 4 to 5 years.
CVC Capital plans to invest in European and US companies with valuations between €1 billion and €5 billion. The firm has a particular focus on non-cyclical sectors. CVC Capital has approximately US$15 billion under management. Current clients include:
- Asplundh Tree Expert from Pennsylvania. The company operates a vegetation management business.
- Sebia of France, a manufacturer of diagnostic equipment.
- Hempel of Denmark, a manufacturer of paints and coatings.
Funds focused on long-term capital preservation have grown in popularity in recent years. Demand for such strategies is driven by investors’ desire for higher returns over a longer period. Such an approach is proving effective, particularly in a highly competitive market.
Representatives of CVC note that the closure of the fund occurred more quickly than experts had expected. They cite the decline in activity among European investors as the reason. They raised a total of €13.8 billion through 19 funds. The largest are Ardian’s Expansion Fund VI and Thoma Bravo’s first fund. The former reached 10% of its initial limit of €3.2 billion. Thoma Bravo closed at €1.8 billion.
About CVC Capital Partners
CVC Capital Partners is a private investment and advisory firm. The firm manages investments in more than 100 companies and operates from 25 offices around the world.
The firm was founded in 1981 as an independent division of Citibank. After separating from the parent company, CVC Capital closed its first fund of US$300 million. The move secured the firm’s independence.
Initially, the fund worked with venture capital investments. In 1996, it switched to investing in mature companies. The second fund was closed with US$840 million of capital.
By the early 2000s, CVC had established itself as a leader in the European private equity market. In 2021, the firm’s third fund became the largest private equity fund in Europe. At the same time, the firm opened a division to focus on Asian markets.