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CVC Capital Partners

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CVC Capital Partners plc
Company typePublic
Euronext Amsterdam: CVC
IndustryPrivate equity
Founded1981; 43 years ago (1981)
FounderRolly van Rappard
Headquarters
St Helier
,
Jersey
Key people
  • Rob Lucas (Chief Executive and Managing Partner)
  • Rolly van Rappard (co-chair)
[1]
Products
  • Private equity
  • Credit
  • Secondaries
  • Infrastructure
[2]
Services
  • Investment Banking & Brokerage
  • Diversified Financial Services
AUM€186 billion (2024)[3]
Number of employees
c. 850 (2023)[4]
Websitecvc.com

CVC Capital Partners plc is a Jersey-based private equity and investment advisory firm with approximately €186 billion of assets under management[3] and approximately €157 billion in secured commitments since inception across American, European, and Asian private equity, secondaries, credit funds and infrastructure.[5] As of 31 December 2021, the funds managed or advised by CVC are invested in more than 100 companies worldwide, employing over 450,000 people in numerous countries. CVC was founded in 1981 and, as of 31 March 2022, has over 850 employees[4] working across its network of 25 offices throughout EMEA, Asia and the Americas.

In June 2022, CVC was ranked fourth in Private Equity International's PEI 300 ranking of the largest private equity firms in the world,[6] but fell to 15th in the 2023 ranking. However, by 2024, CVC had risen back to fourth in the rankings.[7] In 2023, it raised the largest ever raised private equity fund globally at €26 billion.[8]

History

[edit]
History of private equity
and venture capital
Early history
(origins of modern private equity)
The 1980s
(leveraged buyout boom)
The 1990s
(leveraged buyout and the venture capital bubble)
The 2000s
(dot-com bubble to the credit crunch)
The 2010s
(expansion)
The 2020s
(COVID-19 recession)

By the early 1990s, Michael Smith, who joined Citicorp in 1982, was leading Citicorp Venture Capital in Europe along with other managing directors Steven Koltes, Hardy McLain, Donald Mackenzie, Iain Parham, and Rolly Van Rappard. In 1993, Smith and the senior investment professionals of Citicorp Venture Capital negotiated a spinoff from Citibank to form an independent private equity firm, CVC Capital Partners.[9] In 1996, Rob Lucas, who would go on to be the firm's lead managing partner in the 2020s, joined the firm.[10] In 2006, the US arm of Citigroup Venture Capital also spun out of the bank to form a new firm, known as Court Square Capital Partners. CVC operated offices in London, Paris and Frankfurt.

Following the spinoff, CVC raised its first investment fund with $300 million of commitments, half coming from Citicorp and the rest from high-net-worth individuals and institutional investors. Now independent, CVC also completed its transition from venture capital investments to leveraged buyouts and investments in mature businesses. CVC would follow up with its second fund in 1996, it is first fully independent of Citibank, with $840 million of capital commitments.[11]

Investments

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2000s

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By 2000, CVC was one of the largest and best known private equity firms in Europe. In 2001, CVC completed fundraising for its third investment fund, which was the largest private equity fund raised in Europe at the time, just ahead of funds raised by other leading firms, Apax Partners and BC Partners.[12] Also, around the same time, CVC expanded into Asia with a $750 million fund focusing exclusively on investments in Asian companies.

In 2004, CVC and Permira bought from Centrica the British motoring association The AA, and in July 2007 merged The AA with Saga under Acromas Holdings.[13]

From November 2005 to March 2006, CVC gradually purchased 63.4% of the shares of the Formula One Group, owner of the Formula One auto racing championship.

In 2006, CVC and Permira were accused by Labour MP Gwyn Prosser in the House of Commons of "greed" and "blatant asset stripping" of The AA "to borrow £500m on the basis of The AA's assets in order to pay themselves a dividend." The AA responded that they were "happy to have a reasoned conversation with Mr Prosser."[14]

In 2007, CVC expanded to the U.S., opening an office in New York City, headed by Christopher Stadler and overseen by Rolly van Rappard.[15]

2010s

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In 2012, CVC reduced its shares in the Formula One Group to 35.5%. The deputy team principal of Force India, Bob Fernley, accused CVC of "raping the sport" during the period of its involvement in Formula One.[16]

In January 2013, Smith retired from the role of chairman and Koltes, Mackenzie and Van Rappard were appointed co-chairmen of the group.[17]

In January 2015, CVC Capital Partners and Bencis Capital Partners were sentenced to pay fines by the Dutch Authority for Consumers and Markets after it charged the former Dutch portfolio company of the two firms, Meneba Beheer, with breaking competition rules through price fixing.[18][19] The Dutch regulator ruled that the two firms must pay between €450,000 and €1.5 million after Meneba Beheer, which was itself fined €9 million by the authority, was involved in a collective agreement with competitors to keep prices stable between 2001 and 2007.[18]

In February 2015, CVC made its first investment from CVC Growth Partners in Wireless Logic, Europe's largest machine-to-machine managed service provider, acquiring it from ECI Partners.[20]

In March 2015, CVC bought 80% of shares of gambling company Sky Betting & Gaming.[21]

In June 2015, CVC acquired the German perfume retailer Douglas AG for an disclosed fee from private equity firm Advent International.[22]

In September 2015, CVC opened an office in Warsaw.[23]

In November 2015, CVC and the Canada Pension Plan Investment Board both acquired American pet supplier Petco for a fee of around $4.6 billion.[24]

In April 2016, CVC Capital Partners acquired German betting operator Tipico.[25]

In August 2016, CVC Capital Partners agreed to buy a 15% stake in PT Siloam International Hospitals Tbk, among Indonesia's and Southeast Asia's largest corporate chains of private hospitals.[26]

In September 2016, CVC Capital Partners agreed to sell control of the Formula One Group to John Malone's Liberty Media in a deal worth US$4.4bn. The two-part deal would see the US media group buy 18.7 per cent of the F1 parent company Delta Topco for $746mn in cash from a consortium of shareholders led by CVC. In 2017, a second payment of $354mn in cash and $3.3bn in newly issued shares in a Liberty Media tracking stock saw Liberty Media assume full control of Formula One once the deal was approved by regulators, the FIA and Liberty's shareholders.[27]

In October 2017, CVC Capital Partners acquired Dutch global provider of compliance and administrative services firm TMF Group for €1.75 billion.[28][29]

In May 2018, CVC Capital Partners paid $160 million for the acquisition of OANDA Global Corporation (OANDA),[30][31] a global online retail foreign exchange trading platform, currency data and analytics company headquartered in Toronto, Ontario, Canada.[32]

Towards the end of 2019, CVC Capital Partners purchased Ontic from BBA Aviation for $1.365 billion.

2020s

[edit]

On 25 October 2021, Irelia Company Pte Ltd. (CVC Capital Partners) bought the Ahmedabad-based Indian Premier League cricket franchise (Gujarat Titans) for ₹56,250 million (US$670 million).[33]

In November 2021, CVC acquired the bulk of Unilever's tea division, Lipton Teas and Infusions for £4.5 billion. It included 34 tea brands.[34] The deal also included tea estates in three countries and 11 factories.[35]

In July 2022, CVC sold a near-50 per cent stake in TMF Group to the Abu Dhabi Investment Authority.[36] In 2022, co-founder Steve Koltes stepped down from the firm.[37]

CVC initially planned to float an IPO on the Euronext Amsterdam stock exchange in 2022.[38] The float was delayed, citing market disruption caused by inflation and the invasion of Ukraine.[39][40] The deal was further postponed in 2023. The chief executive of the firm would be Rob Lucas.[41]

In December 2023, CVC acquired a Japanese pharmacy operator, Sogo Medical, for $1.2 billion.[42]

In February 2024 CVC raised $6.8 billion for its sixth Asia fund, its largest to date in the region and 50% larger than the previous $4.5 billion fund raised in 2020.[43][44] Donald Mackenzie, another co-founder, stepped back from the firm in February 2024.[10]

On 26 April 2024, CVC listed its shares on the Euronext Amsterdam stock exchange, opening at €17.34. The total offering size was €2.3 billion.[45][46]

Investment funds

[edit]
Fund[47] Year Region Size (millions)
CVC European Equity Partners I 1996 Europe $840
CVC European Equity Partners II 1998 Europe $3,333
CVC Asia Fund I 2000 Asia $750
CVC European Equity Partners III[15] 2001 Europe $3,971
CVC European Equity Partners IV[48] 2005 Europe €6,000
CVC Capital Partners Asia Pacific II 2005 Asia $1,975
CVC European Equity Partners Tandem Fund 2007 Europe €4,123
CVC European Equity Partners V 2008 Europe €10,750
CVC Capital Partners Asia Pacific III 2008 Asia $4,120
CVC Capital Partners Asia IV 2014 Asia $3,495
CVC Capital Partners VI 2014 Global €10,907
CVC Growth Partners 2015 US & Europe $1,000
CVC Capital Partners VII 2017 Global $18,000
CVC Strategic Opportunities II[49] 2019 Global $4,600
CVC Growth Partners II[50] 2019 US & Europe $1,600
CVC Capital Partners Asia V[51] 2020 Asia $4,500
CVC Capital Partners VIII [52] 2020 US & Europe €21,300
CVC Capital Partners Asia VI[53] 2023 Asia $6,800
CVC Capital Partners IX[54] 2023 €26,000

Notable investments

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References

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  1. ^ "CVC's biggest bet yet: the fiercely private buyout firm set to go public". Financial Times. Retrieved 2024-05-01.
  2. ^ "Strategies". CVC. Retrieved 2024-05-01.
  3. ^ a b Swetha Gopinath; Dinesh Nair (14 April 2024). "Buyout Giant CVC Seeking More Than €1 Billion in Amsterdam IPO". Bloomberg.com. Retrieved 15 April 2024.
  4. ^ a b Louch, Will (20 July 2023). "CVC raises €26bn for largest buyout fund in history". www.ft.com. Retrieved 31 January 2024.
  5. ^ Gopinath, Swetha; Kirchfeld, Aaron; Nair, Dinesh (4 September 2023). "CVC Agrees to Buy €16 Billion Manager DIF in Infrastructure Push". Bloomberg.com. Retrieved 31 January 2024.
  6. ^ "PEI 300 2022: KKR beats the crowd to claim PE’s throne". Private Equity International, June 1, 2022.
  7. ^ Beer, Helen de (2024-06-03). "Blackstone holds PEI 300 top spot". Private Equity International. Retrieved 2024-06-04.
  8. ^ "PEI 300 | The Largest Private Equity Firms in the World". Private Equity International. 2023-06-01. Retrieved 2023-06-02.
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  10. ^ a b "CVC co-founder Donald Mackenzie, who led the F1 buyout, bows out before planned IPO". www.ft.com. Retrieved 2024-05-01.
  11. ^ Desk, CricketSoccer (2021-08-06). "On the La Liga and CVC agreement | CricketSoccer". Retrieved 2022-11-27. {{cite web}}: |last= has generic name (help)
  12. ^ "CVC Capital Partners closes record €4.65bn European fund". AltAssets. June 28, 2001. Archived from the original on July 20, 2012.
  13. ^ Wachman, Richard (1 July 2007). "A sorry Saga at the AA?". The Guardian. Retrieved 15 September 2016.
  14. ^ Clement, Barrie. (12 April 2006). MPs accuse owners of asset stripping AA motoring group. The Independent.
  15. ^ a b "CVC sets up in US". AltAssets. January 31, 2007. Archived from the original on September 29, 2011. Retrieved October 11, 2009.
  16. ^ "CVC ownership of F1 should serve as a warning to Premiership Rugby". TheGuardian.com. 2018-09-10.
  17. ^ "CVC chairman Michael Smith steps down after 30 years". Retrieved 2016-09-05.
  18. ^ a b "ACM fines investment companies for cartel activities of portfolio company". www.elexica.com. Archived from the original on 2017-01-13. Retrieved 2016-09-05.
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  23. ^ "CVC opens Warsaw office, hires Krawczyk from Innova". AltAssets. 17 September 2015.
  24. ^ "CVC, Canada's CPPIB to buy Petco for about $4.6 billion". Reuters. 23 November 2015. Archived from the original on 26 November 2015. Retrieved 30 June 2017.
  25. ^ Langworth, Hannah (25 April 2016). "CVC acquires German betting operator Tipico". Real Deals.
  26. ^ "CVC to buy 15 percent of Indonesian hospital operator Siloam from..." Reuters. 29 August 2016.
  27. ^ "US media firm Liberty Media to buy Formula 1". BBC News. 8 September 2016. Retrieved 2016-09-08.
  28. ^ "CVC Fund VII agrees to acquire TMF Group". 27 October 2017.
  29. ^ "Private equity firm CVC sells TMF Group stake to its own fund". Financial Times. 25 July 2022.
  30. ^ "CVC Asia Fund IV agrees to acquire OANDA". 2 May 2018.
  31. ^ "Bargain Hunters? Exclusive Details on the OANADA-CVC Acquisition". Financial Magnates. 18 June 2018.
  32. ^ "CVC Capital Partners Asia Fund IV acquires OANDA Global Corporation". McCarthy Tétrault LLP. 15 October 2018.
  33. ^ "New IPL teams: CVC Capital wins bid for Ahmedabad, RPSG Group gets Lucknow". Business Standard India. Press Trust of India. 25 October 2021. Retrieved 26 October 2021.
  34. ^ Cavale, Siddharth (November 18, 2021). "Unilever bags $5 bln deal with CVC for tea business". Reuters – via www.reuters.com. Archived
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  37. ^ "CVC co-founder Steve Koltes to step down as firm plans to float". www.ft.com. Retrieved 2024-05-01.
  38. ^ "CVC co-founder Steve Koltes to step down as firm plans to float". www.ft.com. Retrieved 2024-05-01.
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  43. ^ Murdoch, Scott; Wu, Kane (21 February 2024). "Private equity fund CVC raises $6.8 bln for its sixth Asia fund". Nasdaq.com. Retrieved 22 February 2024.
  44. ^ Venkat, P.R. (21 February 2024). "CVC Capital Partners Raises $6.8 Billion for Its Sixth Asia Fund". WSJ. Retrieved 22 February 2024.
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  46. ^ "CVC shares jump in trading debut after long-awaited IPO". www.ft.com. Retrieved 2024-05-08.
  47. ^ "Preqin Online Database". Preqin. September 05, 2016.
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  51. ^ Mendoza, Carmela (3 April 2020). "CVC closes fifth Asia fund on $4.5bn hard-cap". Private Equity International. Retrieved 10 May 2022.
  52. ^ "CVC Capital Closes Record 21 Billion-Euro Buyout Fund". Bloomberg.com. 3 July 2020. Retrieved 17 October 2020.
  53. ^ "CVC raises US$6.8 billion for its sixth Asia Fund". CVC. Retrieved 2024-07-19.
  54. ^ Louch, Will (2023-07-20). "CVC raises €26bn for largest buyout fund in history". Financial Times. Retrieved 2023-07-24.
  55. ^ Lunden, Ingrid (5 February 2014). "Security Software Firm Avast Gets CVC Capital Investment, Now Valued At $1B". TechCrunch. Retrieved 2016-09-05.
  56. ^ Driebusch, Telis Demos And Corrie. "Forget Going Public, U.S. Companies Want to Get Bought". Wall Street Journal. ISSN 0099-9660. Retrieved 2015-11-29.
  57. ^ Kleinman, Mark (December 2, 2015). "F1 Shareholder CVC Motors To £2bn RAC Deal". Sky News. Retrieved December 3, 2015.
  58. ^ "TMF Group Acquired by CVC Capital Partners". TMF Group. 2017-10-27. Retrieved 2017-11-10.
  59. ^ "CVC Capital Partners' cricket franchise Gujarat Titans win Indian Premier League". CityAM. 2022-05-30. Retrieved 2022-09-20.
[edit]

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