CVC Capital Partners will acquire a 40 percent stake in UK motorway service provider Moto from UK-based Universities Superannuation Scheme. This is the second investment from its $4.5 billion, Strategic Opportunities Fund, both this week, with both in UK motoring-related businesses.
Moto has 45 locations throughout the UK employing more than 6,000 staff and is understood to be valued at more than £1 billion (£1.5 billion; €1.4 billion). In October USS acquired a 100 percent interest in Moto Group through two separate transactions for an undisclosed amount.
CVC announced earlier this week that it has acquired The Carlyle Group’s stake in roadside assistance company the Royal Automobile Club for an undisclosed amount. Carlyle invested £1 billion in RAC in 2011, as reported by Private Equity International.
The Strategic Opportunities Fund is focused on mega-buyout opportunities that it will hold for 8-12 years, catering to investor demand for longer term investments with lower risk. It will target mid-teen returns, as reported by PEI and look at companies primarily in the UK and Europe, although it can invest beyond.
USS Investment Management, the investment subsidiary of USS, has recently boosted its private markets team with the hire of an associate and five new investment analysts.
In a statement released in November, head of private markets group Mike Power said the appointments were “further evidence of our commitment to grow the private markets capability at USS, in particular our ability to acquire assets directly.”
More than 20 percent of the scheme’s £48 billion of assets are invested in private markets, including Heathrow Airport and timberland in Australia. Its investment management team now totals 30 people.