20 July 2023

CVC Capital Partners raises a record €26 billion for the largest buyout fund in history

In the current environment, where many private equity firms are struggling to raise capital, this is an extraordinary achievement.

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Private equity firms are facing problems with their traditional LBO model due to the impact of higher interest rates. As a result, executing trades and generating returns for investors is more difficult. This situation has led some investors to reduce their allocations to this asset class, which in turn is affecting the ability of funds to raise new capital. According to Bain & Company, global private equity capital raised in the first six months has seen a significant decline of 35% to USD 517 billion compared to the same period a year ago.

CVC is a private equity and investment advisory firm with operations in Europe, Asia and the US and an established network of 25 offices. With an impressive portfolio, CVC manages approximately EUR 140 billion in assets. The funds CVC manages or advises are invested in more than 125 companies worldwide, with a total annual turnover of approximately EUR 100 billion and employing more than 550,000 people. The main focus of the new fund will revolve around investments in Europe, the Middle East and Africa (EMEA). Its investment strategy will cover sectors as diverse as technology, healthcare, consumer goods and financial services. In addition, the fund will particularly target companies looking to expand their operations or enter new markets in the EMEA region.

Unlike other large PE funds such as Apollo, Blackstone and the Carlyle Group, CVC has remained unlisted. However, the firm is considering an initial public offering (IPO). This year, CVC has already entered into agreements to invest in Danish transport company Scan Global Logistics, Brazilian food distributor Delly's and the Women's Tennis Association.