Reuters – CVC Sells Stake to Powerful Investors

Private equity house CVC Capital Partners has sold a 10 percent stake of the firm to a group of investors as it looks to strengthen ties with its influential backers, writes Reuters. The names of the investors and the value of the stake were kept confidential, writes Reuters.

Reuters – Private equity house CVC Capital Partners has sold a 10 percent stake of the firm to a group of investors as it looks to strengthen ties with its influential backers, a person familiar with the situation said.

CVC, one of the world’s largest private equity groups with investments in Formula One and theme parks group Merlin Entertainment, sold the stake and informed all its investors of the deal in June, the person said.

The names of the investors and the value of the stake were kept confidential, the person added.

The deal comes as leading private equity firms look to deepen relationships with their largest and wealthiest investors to ensure long term backing for their funds.

Rival buyouts firm Apax has already sold a similar stake of itself to sovereign wealth funds eager to earn better returns from their private equity investments.

By buying into the management company alongside the private equity partners, investors can get first refusal on investments alongside funds in deals and earn a slice of the lucrative performance fees, also known as carried interest.

CVC is expected to start raising its latest fund next year and is targeting about 10 billion euros for deals, one of the largest funds since the financial crisis, people familiar with the situation have previously said.

CVC declined to comment.

M&APRIVATE CAPITAL

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