Global buyout firm CVC Capital Partners is preparing to launch a highly anticipated initial public offering (IPO) in Amsterdam, slated to commence on Monday, with ambitious aims to achieve a valuation of up to $16 billion. This strategic move comes amidst a notable resurgence in the IPO market, reflecting renewed investor confidence buoyed by improving market conditions.
CVC’s IPO aspirations are targeted at achieving a valuation range of approximately €13 billion to €15 billion, translating to $13.8 billion to $16 billion. The firm intends to raise over €1 billion through a combination of divesting existing shareholders’ stock and issuing new shares, assuming the IPO launch proceeds as planned.
An earlier attempt by CVC to go public in November was put on hold due to heightened market volatility triggered by geopolitical tensions in the Middle East. However, with market conditions showing signs of stabilization and recovery, driven by rallying stock markets and an increase in new listings, CVC is poised to capitalize on the more favorable environment.
With an extensive investment portfolio totaling around €186 billion, spanning private equity, credit, and infrastructure investments, CVC has established a strong reputation in the global investment landscape. Notably, the firm has been involved in several high-profile sports-related deals, including the sale of the Formula One motor-sport franchise to Liberty Media for $4.4 billion in 2016.
For CVC, the IPO represents an opportunity to unlock value for its partners and shareholders while enhancing the firm’s visibility and positioning for future fundraising endeavors. Additionally, the IPO will provide CVC with a valuable currency for strategic acquisitions, enabling geographical expansion and bolstering its market presence.
Key figures within CVC, including co-chairman Rolly Van Rappard, CEO Rob Lucas, and CFO Fred Watt, are spearheading the IPO initiative. Founded over four decades ago as Citicorp Venture Capital, CVC has evolved into a global investment powerhouse with a network of 29 offices worldwide.
With a track record of success and a recent milestone fundraising of €26 billion, CVC’s IPO is poised to attract significant investor interest. Public investors typically value listed private equity firms for their potential for asset growth and steady fee income generation. Against this backdrop, CVC’s IPO represents a significant milestone in the firm’s journey and underscores its commitment to delivering value for its stakeholders in the dynamic global investment landscape.