London shops go large in New York

CVC, 3i and BC Partners all have recently opened up major new offices in New York City, indicating the growing global influence of UK-based private equity franchises.

Three major UK-based private equity firms all have recently expanded offices in New York.

According to New York commercial real estate agency Studley, London-based CVC Capital Partners has just leased a 9,727-square-foot space at 712 Fifth Avenue. The space takes up the entire 43rd floor of the building.

CVC, which unveiled its New York plans in January, has hired former Ripplewood Holdings partner Robert Berner to join the US team. The CVC New York office is led by Christopher Stadler, a former Investcorp partner.

CVC will be in the same building as Riverstone Holdings, the energy investment affiliate of The Carlyle Group. A Studley statement noted the building’s “stunning panoramic Central Park views”.

In addition, the Studley statement noted that 3i Group and BC Partners, both London-based major private equity firms, have recently opened offices at 375 Park Avenue and 667 Madison Avenue, respectively.

3i now shares a building with US media investment firm Quadrangle Group, while BC Partners shares its address with newly formed Crestview Partners.

UK-based private equity firms have historically avoided the crowded US private equity market, but the recent growth of several major firms, as well as today’s globalised private equity opportunity, has drawn some players to US shores.

An upcoming ranking of private equity firms by size, Private Equity International’s PEI 50, will reveal that a significant number of the world’s largest private equity firms are based in London. The PEI 50 will be released in the May issue of Private Equity International.