Cinven closes sixth fund on €7bn

The Pan European buyout firm, led by Stuart McAlpine, said it could have raised double that amount based on LP demand.

Pan European firm Cinven has closed its sixth fund on €7 billion after just four months in market, the firm said this morning. The firm added that the fund was “oversubscribed by two times its target”, adding it firm has closed “a right-sized fund to invest primarily in Europe”.

The Sixth Cinven Fund, which is considerably larger than its 2012-vintage €5.3 billion predecessor, had a re-up rate of more than 90 percent.

Investors in the fund include the New York State Teachers’ Retirement Fund, which committed $200 million, Teacher Retirement System of Texas, which committed more than $340 million, and Washington State Investment Board, which committed more than $300 million.

Cinven has been raising the fund amid a string of successful exits, including the sale of its final shares in Altice-Numericable in April, bringing the total return for that investment to 4.7x.

The firm has also been through a management transition. Last September Stuart McAlpine took over from Hugh Langmuir as the firm’s managing partner. Langmuir served as managing partner from 2009 when he took over from Robin Hall, became executive chairman.

Cinven is understood to have finished investing its fifth fund. The firm partnered with the Canada Pension Plan Investment Board (CPPIB), one of the fund’s LPs, to acquire 100 percent of online travel services company Hotelbeds Group for an enterprise value of €1.2 billion. The acquisition of the Palma de Mallorca-based online wholesale accommodation provider from Tui Group, announced in April, is split equally between Cinven and CPPIB, as reported by Private Equity International.

As at December 31, 2015, the Fifth Cinven Fund was delivering an internal rate of return of 15.19 percent, according to data from Washington State Investment Board.

In the statement, McAlpine said the freshly-closed vehicle is “well positioned to provide an important source of committed, long term capital to businesses in order to achieve sustainable growth and generate attractive returns for investors and their beneficiaries.”