CVC seeks $12.2b for latest global buyout fund – report

According to Bloomberg, CVC plans to raise less than the EUR10.75 billion its got for its previous global fund in 2008 but has set no upper limit. CVC is allowing prospective investors online access to due-diligence materials and is expected to distribute marketing documents soon.

The firm's 2005 global fund, which raised EUR6 billion, was generating a 1% IRR and a 1.75x multiple as of September 30, according to performance data from Oregon Public Employees Retirement Fund. Until the same date, the firm's most recent fund, CVC European Equity Partners V, was producing an 8.8% net IRR and a 1.26x money multiple.

By contrast CVC Asia Pacific's second regional fund, which closed in 2005 at $1.975 billion, had reportedly lost 10% of its investment value due to failing portfolio companies such as Australian television network Nine Entertainment.

The second Asia fund has invested $1.78 billion, realized $543 million, reported $220 million in other income and is valuing the remaining portfolio at $836 million. CVC's first Asia fund, raised in 1999, more than tripled its $750 million corpus.

CVC's most recent Asian fund, CVC Capital Partners Asia III, held the final close in April 2008 on approximately $4.2 billion surpassing its original target of $4 billion.

Several other global buyout firms are also in the market, with New York-based Warburg Pincus is seeking $12 billion for its latest vehicle. Advent International recently raised EUR8.5 billion ($10.8 billion) for its seventh global buyout fund, more than the EUR7 billion planned initially. It is one of the largest buyout funds raised since the global financial crisis.

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• Topics
• Buyout
• Fundraising
• Fundraising
• buyout
• Asia
• Warburg Pincus Asia
• CVC Capital Partners
• Advent International