CVC nears €4bn ’side-car’ close

CVC Capital Partners is reportedly approaching a close for its ’side-car’ fund to bolster last year’s €6 billion fundraising, which was quickly outstripped by rival mega-funds.

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.

CVC success: Debenhams investment paid handsomely

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.