Reuters – CVC Raises Funds Through Credit Fund Flotation

The asset management arm of private equity firm CVC Group has raised 351.2 million euros ($460 million) by floating one of its credit funds on the London Stock Exchange, writes Reuters. CVC Credit Partners European Opportunities, which invests in sub-investment-grade debt markets, said last month it planned to raise at least 300 million euros through the offering, writes Reuters.

Reuters – The asset management arm of private equity firm CVC Group has raised 351.2 million euros ($460 million) by floating one of its credit funds on the London Stock Exchange.

CVC Credit Partners European Opportunities Ltd , which invests in sub-investment-grade debt markets, said last month it planned to raise at least 300 million euros through the offering.

The shares, which are denominated in both euros and pounds, opened flat on their market debut on Tuesday, before dipping just below the offer price of 1 pound or 1 euro.

Affiliates of CVC subscribed to about 8.1 pct of the euro- denominated shares and 3.3 pct of the sterling-denominated issue.

A pullback by traditional lenders such as banks from the loan market, combined with company refinancing needs, had created significant opportunities for credit managers to trade loans, the fund’s chairman Richard Boleat said when the offer launched.

Goldman Sachs was global co-ordinator and bookrunner on the flotation.

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