CVC Capital Closes Record 21 Billion-Euro Buyout Fund

CVC Capital Partners has completed a 21.3 billion-euro ($24 billion) fundraising for its eighth flagship fund, people familiar with the matter said, in the private equity industry’s largest new pool of capital so far this year.

The buyout fund, which is CVC’s biggest ever, will focus on investments in Europe and the U.S., according to the people, who asked not to be identified because the information is private. CVC is closing the fund at its hard cap, surpassing its original target of 17.5 billion euros for the vehicle, the people said.

CVC started fundraising for the pool in January, the people said. A representative for CVC declined to comment.

Private equity firms have been on a fundraising spree as large institutional investors seek better returns in a low interest rate environment. Bain Capital is planning to raise about $9 billion for its next global buyout fund, Bloomberg News reported in May.

EQT AB and BC Partners have also been working on new private-equity funds. Investor confidence is starting to return as some economies emerge from lockdown, which has helped drive stock markets higher and boost demand for riskier assets.

The private equity industry is sitting on around $2.6 trillion in unspent capital, according to a May report from Bain & Co. Still, some buyout firms like KKR & Co. have been making big bets to take advantage of the coronavirus slump.

CVC has remained active in the sports industry, agreeing in May to buy a 28% stake in the PRO14 rugby league. It’s also been considering soccer investments in Germany and France, in addition to its recent negotiations to buy a minority stake in Italy’s Serie A.

The firm manages about $79.6 billion across private equity and credit funds, according to its website.

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