CVC, a European buyout firm, is in the final stages of raising a bolt-on fund reported to be in excess of €4 billion to be deployed alongside the €6 billon one it raised just last year.
According to a report in the Daily Telegraph, a UK daily paper, CVC’s fundraising is going well and, although an initial €3 billion to €4 billion target was set, there is no upper limit.
One investor said Debenhams deal provided a handsome return and the new fundraising was a welcome opportunity for additonal exposure to CVC.
However, the report said CVC will not list the fund on a stock exchange, choosing not to follow in the footsteps of KKR, Texas Pacific Group and Doughty Hanson.
CVC will tap the new fund, when its existing funds allocate more than €250m into an investment. The money will therefore act as a top-up, so spreading the risk for investors across various funds. A spokesman for CVC declined to comment.
CVC has raised more than $18bn in Europe and Asia. It is also looking to raise a debt fund under the CVC Cordatus badge. It is building a team under David Wood, formerly co-head of Deutsche Bank’s European leveraged finance team, to invest in distressed debt situations and collaterised loan obligations.