CVC predicts listing in Amsterdam as blow to London market

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CVC Capital Partners, Europe’s largest private equity group, plans to flee London and launch its multibillion-euro IPO on Euronext Amsterdam.

The buyout group has told potential investors it is considering listing on the Dutch stock exchange and setting a target of €25 billion for its next private equity fund, according to four people with knowledge of the matter.

No final decision has been made on the listing or its timing, and much will depend on the evolution of the war in Ukraine and its consequences for markets, the sources added.

However, the choice of Amsterdam over London, by a company with its roots in the British capital where it has had a strong presence since it spun off from a private equity division of Citigroup in 1993, would be a blow. hard for the London Stock Exchange. .

Britain has struggled to attract large and successful listings following its departure from the EU, which ended regulatory equivalence for financial services. He is working on reforms that attempt to strengthen the listings market.

If the plans pan out, CVC would become the first major private equity firm to go public, in what is expected to become a blockbuster float. The buyout group was valued at around 15 billion euros last year when it agreed to sell a minority stake to Blue Owl’s Dyal Capital unit.

CVC declined to comment.

Rival buyout group Bridgepoint became the first major private equity firm to list in London for decades last year, raising £300million. He used a model that allowed him to avoid sharing information with shareholders about how much money his top executives took home in deferred interest payments, a lucrative 20% share of profits on successful deals. .

It is unclear whether Amsterdam regulators would require CVC to disclose details of deferred interest payments. Shares of Bridgepoint jumped following a listing last summer, but have fallen 38% since the start of this year.

CVC has already drawn up plans that would allow it to keep most or all of the lucrative profits it makes from buying and selling businesses in private hands, while returning the proceeds of its management fee income to public investors. smaller but more predictable.

The secretive group has $122 billion in assets under management, according to its website. He is best known for deals such as Formula 1, the Six Nations rugby tournament, the communications company Teneo and Unilever’s tea business.

Last year, CVC took steps to bring in outside capital by selling a stake in Blue Owl’s Dyal Capital unit and to increase its asset base by acquiring asset manager Glendower Capital.

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