Private equity group CVC Capital Partners has raised 10.5 billion euros ($13.8 billion) for its latest buyout fund to make investments in Europe and North America, writes Reuters. CVC started fundraising in January for Fund VI with a 9 billion euro target, and a cap of 10.5 billion euros which it could not exceed without consent from existing fund investors.
Reuters – Private equity group CVC Capital Partners said on Monday it had raised 10.5 billion euros ($13.8 billion) for its latest buyout fund to make investments in Europe and North America.
CVC started fundraising in January for Fund VI with a 9 billion euro target, and a cap of 10.5 billion euros which it could not exceed without consent from existing fund investors.
Last month a person familiar with the matter told Reuters CVC had attracted commitments for more than that amount and would have to turn down money.
CVC said 90 percent of the money was provided by investors who had put money into previous CVC funds.
“Despite the many challenges the region faces, we continue to remind our investors that Europe is home to more globalised, highly competitive and well-managed companies than any other part of the world,” CVC co-chairman Steve Koltes said.
Private equity fundraising took a hit during the 2008 financial crisis as investors fretted over the future of debt-laden deals and opted for what they perceived to be safer assets. Since then many buyout firms have lowered their fundraising expectations.
Management consultancy firm Bain & Company estimates around 2.2-2.3 times as much money is being sought by private equity funds which are currently fundraising as investors want to commit.
“It is absolutely polarized. There are 25 percent or lower of funds who are managing to raise their targets in less than 12 months, the other 75 percent are taking more than 12 months or are not getting to their target,” said Graham Elton, head of Bain’s Europe, Middle East and Africa Private Equity practice.
Advent International raised 1.5 billion euros more than its 7 billion euro target for its latest fund while Apax Partners, which like CVC had a 9 billion euro fundraising target, said last month it had managed to raise just 5.8 billion euros.
CVC’s fund is the second largest buyout fund since the financial crisis. Blackstone Group LP last year raised a $16 billion private equity fund, but took four years to secure the money from investors.