Private equity firm CVC Capital Partners is set to go public on the Euronext Amsterdam on Friday, amid a flurry of European IPOs. The firm’s prospectus outlines a price range between $14 and $16 per share, valuing the company from $14 billion to $16 billion. Cofounders Donald Mackenzie and Rolly van Rappard are expected to become billionaires with their 6% stakes in the company after the IPO.
Mackenzie, who recently stepped down as co-chair of the firm but remains on the board as honorary co-chair, will see his 6% stake worth $890 million at the midpoint. He is also selling a chunk of shares worth $130 million, which could grow by another $20 million if the company exercises its over-allotment option. Van Rappard, the remaining co-chair, owns a 6.7% stake that will be worth $1 billion at the midpoint. He is not selling any of his shares and, like Mackenzie, owns a yacht worth millions.
Before the IPO, CVC plans to pay out a $327 million dividend to its shareholders, including $23 million each for Mackenzie and van Rappard. The company was established in 1981 and spun out as CVC Capital Partners in 1993. With $198 billion in assets under management, CVC has investments in sports, including Formula 1, La Liga, Petco, Multiversity, Breitling, Women’s Tennis Association, and Gujarat Titans.
CVC reported $1.2 billion in revenue in 2023, largely from management fees. Despite not generating as much revenue as other asset management giants like BlackRock and Blackstone, CVC has a multi-pronged approach, including private credit and infrastructure opportunities. The company’s IPO could face challenges from geopolitical tensions and market uncertainty but could benefit from expectations of rate cuts in Europe.
The largest shareholder in CVC is publicly traded private equity firm Blue Owl Capital, which holds an 8% stake, worth $1.2 billion at the midpoint price. Blue Owl Capital will also buy more shares in the IPO, giving it a 9.1% stake. Cofounder Steve Koltes, who still has a role at CVC as honorary co-chair, will see a significant boost to his net worth with a 4.2% stake worth $620 million. Two longtime CVC executives, Rob Lucas and Javier de Jaime Guijarro, will also keep all of their shares in the firm after the IPO.
With CVC’s IPO set to make its cofounders billionaires, the firm’s expansion and success in various investments, especially in the sports sector, has positioned it as a significant player in the private equity industry. The company’s focus on multi-generational growth and diverse investment strategies has allowed it to thrive globally, attracting top talent and building a strong reputation within the industry.
