CVC launches $3.5 billion fund

The pan-European firm stays top of the European leveraged buy-out league.

CVC Capital Partners’ return to the fundraising circuit only two years after closing a $3.1billion (E3.4 billion) fund underlines the growing appetite for private equity backing in Europe.

“There is still a massive amount to go in terms of restructuring in Europe,” explained CVC chairmen Mike Smith in an interview with the Financial Times.

He also cited the likely merger of the London and Frankfurt stock exchanges as a potential source of deal flow over the next few years.

CVC recently formed an alliance with antfactory, a new internet business accelerator with a strong European base, to help develop the e-business potential of the old economy companies in its portfolio.

Mr Smith says he is skeptical of the pure internet funds being set up by some rival buy-out firms.