Luxembourg-based CVC Capital has long wanted to go public. But the private equity firm behind rugby’s Six Nations team and soccer’s La Liga has failed – until now.
CVC has finally set its sights on a public listing on the Amsterdam stock exchange to raise more than 1.25 billion euros ($1.3 billion), the company said in a statement on Monday.
As one of Europe’s largest private equity players with capital of €186 billion (US$198 billion) resources, CVC invests in a wide range of industries, from sports to healthcare to retail. CVC famously owned the Formula 1 franchise for several years until 2016, when it sold it to US company Liberty Media.
The firm is seeking a valuation of between 13 billion euros ($13.8 billion) and 15 billion euros ($15.9 billion). That Financial Times reported.
CVC has long sought IPOs, including In November, before retreating as geopolitical tensions added to market uncertainty. While some of these trends continue to linger in the background, conditions have improved and have given way to other high-profile IPOs around the world, such as Swiss skin care company Galderma.
The broader buyout industry has faced the same challenges as many others due to high interest rates and decreased appetite for deal-making.
By going public, Luxembourg-based CVC will be one of many US and European private equity firms that have launched IPOs, such as Blackstone and Bridgepoint Group.
In a statement Monday, CVC CEO Rob Lucas said he believes “CVC’s IPO provides a sustainable, long-term institutional framework to support continued growth.”
The listing will see the private equity firm’s key shareholders, including the Hong Kong Monetary Authority and Singapore’s sovereign wealth fund GIC, see their stakes reduced. The capital CVC receives from the listing will be used for acquisitions in new industries.
CVC scale
Founded by four finance professionals as a division of Citigroup more than 40 years ago, the firm has grown rapidly to become a leading private equity group in Europe.
For its part, CVC is on a strong financial footing, with revenue exceeding €1 billion ($1 billion) last year. company statement said. Last year alone, CVC raised €26.5 billion ($28.2 billion), which was estimated at the time as the largest private equity fund in history.
The upcoming listing could help attract more investor attention and expand the CVC as it moves forward. It’s unclear exactly when the company plans to debut in Amsterdam.
“This is very much a long-term structural decision for the business, and we expect the IPO to happen in the coming weeks, obviously depending on market conditions, and we’re watching developments in the Middle East very closely,” CEO Lucas told Bloomberg in an interview.
CVC representatives did not return immediately Luckrequest for comments.