Private Equity News & Analysis

GIC and KIA buy into CVC management vehicle

Two sovereign wealth funds, GIC and KIA, and a third unnamed fund have acquired a 10% stake in CVC Capital Partners in a deal which will see them given preferential access to deals as well as a share of management fees and carried interest.

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Singaporean sovereign wealth fund GIC, the Kuwait Investment Authority and a third unnamed Asian fund have together purchased a 10 percent stake in CVC Capital Partners, it has emerged. CVC declined to comment.

The deal, agreed in June, was communicated to other investors in CVC’s funds earlier this month, sources said. Both GIC and KIA are existing LPs in the firm’s funds.

As owners of a stake in the CVC general partnership, the sovereign funds will be entitled to a share of fees earned by the firm’s funds, including any carried interest accruing from their investments, sources with knowledge of the matter indicated. The pair will also be given preferential access to co-investment opportunities.

Proceeds from the stake sale are likely to be used to fund the expansion of CVC’s comparatively young infrastructure and credit units.

For GIC, this deal marks its third (known) investment in a private equity GP, following similar deals with Apax Partners and TPG.

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