Buyout giant CVC seeking more than one billion euros in Amsterdam IPO

CVC Capital Partners is set to revive plans for an initial public offering (IPO) in Amsterdam and may seek to raise between about one billion euros (S$1.4 billion) and 1.5 billion euros, according to sources familiar with the matter, potentially paving the way for other private equity firms to go public.

The firm may indicate its intention to float as soon as Monday (Apr 15) and could offer a stake of 10 to 15 per cent in the share sale, the sources said, asking not to be identified as the information is not public yet. CVC is targeting a valuation of around 13 billion to 15 billion euros, the sources said.

Deliberations around the timing of the intention to float are ongoing and details could change, the person said. A representative for CVC declined to comment. CVC’s intention to seek more than one billion euros was reported earlier by The Wall Street Journal.

CVC, one of Europe’s best-known buyout firms, manages about 186 billion euros of assets and owns stakes in companies including Swiss watchmaker Breitling and Lipton Teas and Infusions, according to its website.

CVC has been working on a listing since at least 2022, with previous attempts buffeted by volatile markets. This time around, a rebound in European IPOs is adding to the chances of a successful stock-market debut. Still, the recovery after an 18-month slowdown has been uneven.

Galderma Group, a skin-care company backed by CVC’s private equity rival EQT, has soared more than 17 per cent above its offer price, and Spanish beauty and fragrance group Puig Brands said Apr 8 it would press ahead with an IPO.

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CVC-backed German perfume retailer Douglas suffered a more disappointing stock market debut, however, having slipped about 25 per cent since its March listing. And Spain’s Berge y Compania on Apr 5 scrapped plans to float its Astara unit.

A listing of CVC, which was valued at about US$15 billion when it sold a minority stake to Blue Owl Capital in 2021, would test investor sentiment towards alternative asset managers at a key moment for the industry.  

Private equity firms have seen the path to exiting investments heavily constrained in recent years, with inflation, high interest rates and elevated volatility weighing on dealmaking. A slowdown in returns has also made it harder for private equity firms to raise new funds.

Still, CVC has had more success than its peers in this regard. It raised 26 billion euros last year for the world’s biggest-ever buyout fund and has been diversifying its business into new areas including infrastructure and so-called secondaries, or existing portfolios of private equity fund holdings.

A listing would give it fresh acquisition currency in the form of shares and may also encourage other private asset managers to go public. General Atlantic, the investment firm whose bets have included Facebook and Airbnb, confidentially filed for an IPO, while private credit firm HPS Investment Partners did the same more than a year ago, Bloomberg News has reported.

Stock-market gains for listed European peers such as Bridgepoint Group, Partners Group Holding and EQT are also boosting sentiment around a CVC listing. BLOOMBERG