CVC Capital Partners
|Steve Koltes, Donald Mackenzie, Rolly van Rappard|
|Products||Private equity, venture capital, credit asset management|
CVC Capital Partners is a private equity firm with approximately US$80 billion in secured commitments across European and Asian private equity, credit and growth funds. In total, the CVC Group manages over US$52 billion of assets. Since 1981, CVC has completed over 300 investments across a wide range of industries and countries. CVC was founded in 1981 and today has a network of over 20 offices throughout Europe, Asia and the United States.
American banking giant, Citicorp, had established an investment arm in 1968 to focus on venture capital investments. By the late 1970s and early 1980s, Citicorp Venture Capital, at that time under the leadership of chairman William T. Comfort, continued to invest in early-stage businesses but also expanded into the emerging leveraged buyout business. CVC Capital Partners was originally founded in 1981 as the European arm of Citicorp Venture Capital.
|History of private equity
and venture capital
|(Origins of modern private equity)|
|(Leveraged buyout boom)|
|(Leveraged buyout and the venture capital bubble)|
|(Dot-com bubble to the credit crunch)|
Among Citicorp Venture Capital's early managing directors in Europe were John Botts, Otto Van der Wyck, Jon Moulton and Frank Neale. Of the group's original European leadership, most would leave by the late 1980s. Botts left in 1987 to found his own boutique investment banking firm, Botts & Company. Moulton left the bank to co-found Schroder Ventures (the predecessor of Permira) in 1985. The following year, Van der Wyck left to co-found European private equity firm BC Partners in 1986 and today serves as chairman of AlpInvest and a senior advisor to Coller Capital. Neale also departed to join Phildrew Ventures, which subsequently became UBS Capital and later IRRfc.
Spinout from Citicorp and the 1990s
By the early 1990s, Michael Smith, who joined Citicorp in 1982, was leading Citicorp Venture Capital in Europe along with other managing directors Steven Koltes, Hardy McLain, Donald Mackenzie, Iain Parham, and Rolly Van Rappard. In 1993, Smith and the senior investment professionals of Citicorp Venture Capital negotiated a spinout from Citibank to form an independent private equity firm, CVC Capital Partners. In 2006, the US arm of Citigroup Venture Capital also spun out of the bank to form a new firm, known as Court Square Capital Partners. CVC operated offices in London, Paris and Frankfurt.
Following the spinout, CVC raised its first investment fund with $300 million of commitments, half coming from Citicorp and the rest from high-net-worth individuals and institutional investors. Now independent, CVC also completed its transition from venture capital investments to leveraged buyouts and investments in mature businesses. CVC would follow up with its second fund in 1996, its first fully independent of Citibank, with $840 million of capital commitments.
By 2000, CVC was one of the largest and best known private equity firms in Europe. In 2001, CVC completed fundraising for its third investment fund, which was the largest private equity fund raised in Europe at the time, just ahead of funds raised by other leading firms, Apax Partners and BC Partners Also, around the same time, CVC expanded into Asia with a $750 million fund focusing exclusively on investments in Asian companies.
In September 2015, CVC opened an office in Warsaw.
In April 2016, CVC Capital Partners acquired German betting operator Tipico.
|CVC European Equity Partners I||1996||Europe||$840|
|CVC European Equity Partners II||1998||Europe||$3,333|
|CVC Asia Fund I||2000||Asia||$750|
|CVC European Equity Partners III||2001||Europe||$3,970|
|CVC European Equity Partners IV||2005||Europe||€6,000|
|CVC Capital Partners Asia Pacific II||2005||Asia||$1,975|
|CVC European Equity Partners Tandem Fund||2007||Europe||€4,123|
|CVC European Equity Partners V||2008||Europe||€10,750|
|CVC Capital Partners Asia Pacific III||2008||Asia||$4,119|
|CVC European Equity Partners VI||2013||Europe||€10,907|
Europe and the United States
The current European and US portfolio of companies includes:
- Cerved: Italian credit data and business intelligence company;
- Pilot Travel Centers: truck stop chain in the United States (co-owned with Pilot Corporation);
- Formula One Group: motor sport management business;
- Samsonite: luggage company;
- RAC: automotive rescue service provider in the UK;
- Merlin Entertainments: theme park operator, jointly controlled with KIRKBI/Blackstone Group
- ParmarCorp: leading Private Equity Europe and U.S all sectors;
- Cortefiel: apparel retailers in Spain;
- Seat Pagine Gialle: directories business in Italy;
- Leslie's Pool Supplies: U.S. retailer of swimming pool supplies;
- BPost: Belgian postal services operator;
- Univar: chemical distribution company in the US and Europe;
- R: a Spanish cable company based in Galicia, offering quadruple play services (telephone, mobile phone, Internet and television).
- Skrill: Online payments and money transfer
- Fraikin: Truck Leasing
- PKP Energetyka: Electrical company on the rails
- Petco Holdings Inc.: Major pet supplies retail chain.
It formerly included:
- StarBev: Prague-based brewery, their product line includes the Staropramen Czech lager, as well as international brands brewed and distributed under license. In 2012, StarBev was sold to Molson Coors, which also resulted in a full withdrawal of CVC Capital Partners from Central and Eastern Europe.
The current Asia Pacific portfolio includes:
- Zhuhai Zhongfu: Chinese PET bottler;
- Nien Made: window shutter manufacturer, based in Taiwan;
- Plantation Timber Products: a wood fibreboards producer in China;
- Nine Entertainment Co.: Australian media group;
- DCA Group: diagnostic imaging center operator in Australia;
- Amtek: Singaporean precision metal components company;
- GS Paper and Packaging: Malaysian paper and packaging company;
- Skylark: restaurant operator in Japan;
- Minit Asia Pacific: shoe repair and key cutting provider in Japan;
- Shinwa Co.: system scaffolding supplier in Japan
- Matahari: Indonesian department store chain
- I-Med Network: Australian radiology company
- Hong Kong Broadband Network: Hong Kong broadband operator, acquired from City Telecom
- SPi Global: A Philippines-based BPO company (80/20 ownership between CVC and PLDT)
CVC Capital Partners and Bencis Capital Partners were sentenced to pay fines by the Dutch competition authority after it charged the former Dutch portfolio company of the two firms, Meneba Beheer, with breaking competition rules through price fixing. The Dutch regulator ruled that the two firms must pay between €450,000 and €1.5 million after Meneba Beheer was involved in an collective agreement with competitors to keep prices stable between 2001 and 2007.
- "Briton who has steered CVC to the top". The Times. February 23, 2007.
- "CVC Capital Partners closes record €4.65bn European fund". AltAssets. June 28, 2001.
- "CVC sets up in US". AltAssets. January 31, 2007.
- Kirsti Knolle (1 June 2015). "CVC buys German perfume retailer Douglas". Reuters. Retrieved 1 June 2015.
- "CVC opens Warsaw office, hires Krawczyk from Innova". AltAssets. 17 September 2015.
- "CVC, Canada's CPPIB to buy Petco for about $4.6 billion". Reuters. 23 November 2015.
- Langworth, Hannah (25 April 2016). "CVC acquires German betting operator Tipico". Real Deals.
- "Preqin Online Database". Preqin. October 11, 2009.
- "Pan-European CVC closes €6bn European fund". AltAssets. July 29, 2005.
- "CVC Capital to Buy Cerved for $1.49 Billion". NYTimes.com. March 1, 2013.
- Kleinman, Mark (December 2, 2015). "F1 Shareholder CVC Motors To £2bn RAC Deal". Sky News. Retrieved December 3, 2015.
- Driebusch, Telis Demos And Corrie. "Forget Going Public, U.S. Companies Want to Get Bought". Wall Street Journal. ISSN 0099-9660. Retrieved 2015-11-29.
- "StarBev Sale Brings Cheer To CVC". Invest IQ. April 9, 2012. Archived from the original on August 26, 2012.
- "CVC Capital Partners announces signing of acquisition of Hong Kong broadband network". CVC Capital Partners. April 11, 2012.