Cinven Raises $3.9B For Latest Fund

Cinven has raised 3 billion euros ($3.9 billion) towards its latest buyout fund, Reuters reported Tuesday. The European firm, which counts Pizza Express group Gondola and hospitals operator Spire Healthcare among its investments, is targeting about 5 billion euros for its fifth buyouts fund.

(Reuters) – Cinven has raised 3 billion euros ($3.9 billion) towards its latest buyout fund as it competes against rival private equity groups to raise new capital for deals, a person familiar with the situation said.

 

The European firm, which counts Pizza Express group Gondola and hospitals operator Spire Healthcare among its investments, is targeting about 5 billion euros for its fifth buyouts fund.

 

Cinven told investors on Tuesday it had held a first close on its latest fund, having pulled in 3 billion euros from a combination of existing and new investors, the person said.

 

A first close locks investors into their pledges and allows a firm to start investing that money.

 

Cinven still has the capacity to do one more deal out of its 6.5 billion euro fourth fund, finalised in 2006, the person said.

 

Many of the world’s largest private equity groups, including Apax Partners, Carlyle Group, KKR and Permira are seeking new capital for deals.

 

Buyout firms are currently seeking $193.6 billion for new deals, according to data firm Preqin. That’s up from $177.4 billion at the start of the year, itself an 81 percent increase on what firms were after at the start of 2011.

 

Those that have outperformed their rivals and have returned cash to investors from company sales are enjoying most success, with BC Partners last month finalising its ninth buyouts fund having pulled in 6.5 billion euros from investors, more than initial expectations.

 

Cinven has returned some 2.8 billion euros to investors over the last year from disposals including healthcare group Phadia and the sale of shares in travel bookings group Amadeus.

 

The firm, alongside Goldman Sachs’s private equity arm , recently agreed the sale of tool group Ahlsell to CVC, and is preparing to list Dutch cable company Ziggo. (By Simon Meads)