Exclusive: Cinven to open US portfolio office

UK-based private equity group Cinven is planning to open new offices in New York and Madrid in the New Year, Private Equity International has learnt.

The offices, which are set to open in early to mid-2015, will be based on the same model as the firm’s office in Hong Kong, which has helped Cinven’s portfolio companies, including Pizza Express and CPA Global, to expand into the Asian market.

Cinven confirmed the plan to open the new outposts.

According to an LP source, Cinven has no plans to begin investing in US businesses; rather, its New York office will provide operational portfolio support, as well as IR and financing support. The firm will be hiring operational capability in the US.

Several of Cinven’s portfolio companies are already expanding into the US, including CeramTec, a manufacturer of ceramics including hip implants and other medical products, and aircraft leasing company Avolon Holdings, which filed for a US IPO in June.

The Madrid office will be led by Jorge Quemada, a Cinven partner who joined the firm from 3i’s Madrid office in 2011. Quemada led Cinven’s €510 million acquisition of Spanish fibre operator Ufinet in June 2014.

Cinven is currently investing its fifth fund, a 2012-vintage €5.3 billion vehicle. So far the fund has made nine new investments and seven add-on acquisitions. In February 2014, the firm acquired healthcare contract research organisation Medspace from CCMP Capital Advisors for $915 million. In April, Cinven teamed up with Kohlberg Kravis Roberts and HgCapital to acquire Nordic software company Visma Group in a deal valuing the company at NOK 21 billion (€2.5 billion; $3.5 billion).

Since 2011 the firm has generated €8.2 billion in realisations. In July, Cinven-owned Gondola Group sold Pizza Express to China-based Hony Capital in a deal worth around £900 million. The firm also sold down French cable operator Numericable following an IPO in November 2013, generating a 4.8x return.