In the latest public offering in the European IPO boom, private equity firm CVC Capital Partners went public on the Euronext Amsterdam at $15 per share, valuing the company at $15 billion. Shares quickly rose to nearly $19, creating two new billionaires, cofounders Donald Mackenzie and Rolly van Rappard. Mackenzie, who recently stepped down as co-chair of the firm, sold a chunk of shares worth $180 million, with a potential additional $27 million if the company exercises its over-allotment option. Combined with his assets including a superyacht and properties, Mackenzie is estimated to be worth $1.3 billion. Van Rappard, on the other hand, holds a 6.7% stake worth $1.3 billion and owns a luxury yacht.
Founded in 1981, CVC was established as the European operations of Citicorp Venture Capital before being spun out by Mackenzie, van Rappard, Koltes, and five other cofounders as CVC Capital Partners in 1993. The firm now has $198 billion in assets under management and offices in 29 cities across six continents. Known for its sports investments, including Formula 1 and La Liga, CVC also holds assets in companies such as Petco and Breitling. CVC reported $1.2 billion in revenue in 2023, driven largely by management fees and EBITDA of $692 million. The IPO could be impacted by market uncertainty but is expected to perform well in Europe with potential interest rate cuts.
The largest shareholder in CVC is Blue Owl Capital, a publicly traded private equity firm that bought a 10% stake in several CVC subsidiaries for about $1.1 billion in November 2021. Blue Owl then purchased more shares in the public offering, giving it a 9.4% stake valued at $1.8 billion. Cofounder Koltes, who still has a role at CVC, saw a significant boost in his net worth with a stake worth $760 million and additional earnings from share sales. Two longtime CVC executives, Rob Lucas and Javier de Jaime Guijarro, retained their shares, which are now worth about $660 million and $650 million, respectively.
CVC’s IPO follows a trend of European asset managers performing well in anticipation of expected rate cuts by the European Central Bank. With a focus on private credit and infrastructure investments, CVC is positioned for growth in the market. The firm aims to create a multi-generational business, as stated by Mackenzie, who recently departed from his role as co-chair. CVC’s investments in varied industries, including sports and luxury goods, have contributed to its success and growth over the years.
Despite concerns about market volatility, CVC remains optimistic about the future. The firm’s diverse portfolio and strong leadership team have positioned it well for continued success in the global market. With a focus on long-term growth and strategic investments, CVC is poised to capitalize on opportunities in various sectors and continue to expand its presence in the industry. As one of the leading private equity firms in Europe, CVC’s recent IPO marks a significant milestone in its journey towards continued growth and success in the market.
