CVC Capital Partners closes record E4.65bn European fund


CVC Capital Partners has moved into the lead in the ongoing race to raise Europe's largest buy-out fund.

It has announced the final closing of CVC European Equity Partners III at a total of E4.65bn, taking the total funds under its management to E9.3bn.

This latest success puts CVC a nose ahead of Apax and BC Partners, who earlier in the year raised funds totalling E4.4bn and E4.2bn respectively.

CVC’s new fund will invest in a diversified portfolio of mainly European businesses through buy-outs, buy-ins, acquisitions, recapitalisations, and growth equity investments. The fund was raised from a range of institutional investors and high net worth individuals.

Michael Smith, CVC’s chairman, predicted a bright outlook for private equity investment in the next few years, based on the expectation that the pace of corporate restructuring would accelerate across the continent.

‘We are seeing a considerable shift in the European industrial base as many industry sectors undergo significant corporate restructuring. Private equity is now achieving a higher level of acceptance among corporate vendors and increasingly, we are able to attract first class managers who now have the opportunity of becoming owners,’ he said.

CVC has one of the largest teams of any of the major European private equity groups, with 53 investment professionals located across 11 offices.

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