CVC expands into infrastructure with DIF acquisition
CVC Capital Partners has expanded into the infrastructure space with the acquisition of DIF Capital Partners, a Netherlands-headquartered manager with an investment footprint that includes Australia.
The deal will take the firm’s total assets under management (AUM) to EUR 177bn (USD 190bn), with infrastructure sitting alongside existing strategies in private equity, secondaries, and private credit. CVC will take a majority interest in DIF with an agreement to acquire the remaining shares over time.
Founded in 2005, DIF has EUR 16bn in AUM and a team of more than 225 professionals working out of 11 offices. Strategies cover mid-market core and core-plus infrastructure, primarily in Europe, North America, and Australia.
Recent Australian activity includes the acquisition of rolling stock leasing business Rail First Asset Management. DIF and UK-based Amber Infrastructure acquired the asset for AUD 425m (USD 270m), facilitating an exit for Australian turnaround investor Anchorage Capital Partners. Anchorage bought Rail First four years earlier when the company was beleaguered by droughts and a mining sector slowdown.
The tie-up with CVC is intended to help DIF deepen and widen its investment capabilities, geographic reach, and global investor base. The business will continue to operate under the DIF brand and under the leadership of the current CEO and partners.
“Expanding into infrastructure is a logical next step for us, given the long-term secular growth trends in infrastructure and its adjacency to our existing strategies,” said Rolly van Rappard, chair and co-founder of CVC, in a statement.
“We have known the DIF team for several years, and we are delighted to partner with one of the top pure-play global infrastructure managers, with an impressive track record of performance and growth.”
The transaction, which is subject to regulatory and other approvals, is expected to close in late 2023 or early 2024. CVC was advised by J.P. Morgan, while Morgan Stanley, Loyens & Loeff, PwC, and De Brauw worked with DIF.
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