CVC Capital Partners

{{history of private equity and venture capital}}

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 spinoff from Citibank to form an independent private equity firm, CVC Capital Partners.{{cite web|title=Briton who has steered CVC to the top|url=http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article1426538.ece|archive-url=https://web.archive.org/web/20070228184151/http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article1426538.ece|url-status=dead|archive-date=February 28, 2007|work=The Times|date=February 23, 2007}} In 1996, Rob Lucas, who would go on to be the firm's lead managing partner in the 2020s, joined the firm.{{Cite web |title=CVC co-founder Donald Mackenzie, who led the F1 buyout, bows out before planned IPO |url=https://www.ft.com/content/b21bb7ac-d907-42cd-9069-41f3ef9fb021 |access-date=2024-05-01 |website=www.ft.com}} 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 spinoff, 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, it is first fully independent of Citibank, with $840 million of capital commitments.{{Cite web |last=Desk |first=CricketSoccer |date=2021-08-06 |title=On the La Liga and CVC agreement {{!}} CricketSoccer |url=https://www.cricketsoccer.com/2021/08/06/on-the-la-liga-and-cvc-agreement/ |archive-url=https://web.archive.org/web/20210806120429/https://www.cricketsoccer.com/2021/08/06/on-the-la-liga-and-cvc-agreement/ |url-status=usurped |archive-date=August 6, 2021 |access-date=2022-11-27 |language=en-US}}

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.{{cite web|title=CVC Capital Partners closes record €4.65bn European fund|url=http://www.altassets.com/private-equity-news/by-region/africa/mena/article/nz84.html|publisher=AltAssets|date=June 28, 2001|url-status=dead|archive-url=https://archive.today/20120720063902/http://www.altassets.com/private-equity-news/by-region/africa/mena/article/nz84.html|archive-date=July 20, 2012}} Also, around the same time, CVC expanded into Asia with a $750 million fund focusing exclusively on investments in Asian companies.

In 2004, CVC and Permira bought from Centrica the British motoring association The AA, and in July 2007 merged The AA with Saga under Acromas Holdings.{{cite web|last1=Wachman|first1=Richard|title=A sorry Saga at the AA?|url=https://www.theguardian.com/business/2007/jul/01/privateequity.observerbusiness|website=The Guardian|access-date=15 September 2016|date=1 July 2007}}

From November 2005 to March 2006, CVC gradually purchased 63.4% of the shares of the Formula One Group, owner of the Formula One auto racing championship.

In 2006, CVC and Permira were accused by Labour MP Gwyn Prosser in the House of Commons of "greed" and "blatant asset stripping" of The AA "to borrow £500m on the basis of The AA's assets in order to pay themselves a dividend." The AA responded that they were "happy to have a reasoned conversation with Mr Prosser."Clement, Barrie. (12 April 2006). [https://www.independent.co.uk/news/business/news/mps-accuse-owners-of-asset-stripping-aa-motoring-group-6103972.html MPs accuse owners of asset stripping AA motoring group]. The Independent.

In 2007, CVC expanded to the U.S., opening an office in New York City, headed by Christopher Stadler and overseen by Rolly van Rappard.{{cite web|title=CVC sets up in US|url=http://www.altassets.net/private-equity-news/article/nz10230.html|publisher=AltAssets|date=January 31, 2007|access-date=October 11, 2009|archive-date=September 29, 2011|archive-url=https://web.archive.org/web/20110929172850/http://www.altassets.net/private-equity-news/article/nz10230.html|url-status=dead}}

In 2012, CVC reduced its shares in the Formula One Group to 35.5%. The deputy team principal of Force India, Bob Fernley, accused CVC of "raping the sport" during the period of its involvement in Formula One.{{Cite web|url=https://www.theguardian.com/sport/blog/2018/sep/10/cvc-ownership-f1-warning-premiership-rugby-union|title=CVC ownership of F1 should serve as a warning to Premiership Rugby|website=TheGuardian.com|date=2018-09-10}}

In January 2013, Smith retired from the role of chairman and Koltes, Mackenzie and Van Rappard were appointed co-chairmen of the group.{{Cite web|url=https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9641583/CVC-chairman-Michael-Smith-steps-down-after-30-years.html|title=CVC chairman Michael Smith steps down after 30 years|date=29 October 2012 |access-date=2016-09-05}}

In January 2015, CVC Capital Partners and Bencis Capital Partners were sentenced to pay fines by the Dutch Authority for Consumers and Markets after it charged the former Dutch portfolio company of the two firms, Meneba Beheer, with breaking competition rules through price fixing.{{Cite web |title=ACM fines investment companies for cartel activities of portfolio company |url=http://www.elexica.com/en/legal-topics/antitrust-and-merger-control/17-acm-fines-investment-companies-for-cartel-activities-of-portfolio-company |url-status=dead |archive-url=https://web.archive.org/web/20170113080541/http://www.elexica.com/en/legal-topics/antitrust-and-merger-control/17-acm-fines-investment-companies-for-cartel-activities-of-portfolio-company |archive-date=2017-01-13 |access-date=2016-09-05 |website=www.elexica.com}}{{cite web |last=Bobeldijk |first=Yolanda |date=2015-01-07 |title=CVC and Bencis face antitrust fine |url=https://www.privateequityinternational.com/cvc-and-bencis-face-antitrust-fine/ |work=Private Equity International}} The Dutch regulator ruled that the two firms must pay between €450,000 and €1.5 million after Meneba Beheer, which was itself fined €9 million by the authority, was involved in a collective agreement with competitors to keep prices stable between 2001 and 2007.

In February 2015, CVC made its first investment from CVC Growth Partners in Wireless Logic, Europe's largest machine-to-machine managed service provider, acquiring it from ECI Partners.{{Cite news|url=https://www.pehub.com/2015/02/cvc-buys-wireless-logic-from-eci/|title=CVC buys Wireless Logic from ECI - PE Hub|date=2015-02-11|work=PE Hub|access-date=2017-08-31|language=en-US}}

In March 2015, CVC bought 80% of shares of gambling company Sky Betting & Gaming.{{Cite web |last=BSIC |title=A price too high to be refused: CVC Acquires 80% of Sky Bet for £720m – BSIC {{!}} Bocconi Students Investment Club |date=6 December 2014 |url=https://bsic.it/price-high-refused-cvc-acquires-80-sky-bet-720m-2/ |access-date=2022-11-27 |language=en-GB}}

In June 2015, CVC acquired the German perfume retailer Douglas AG for an disclosed fee from private equity firm Advent International.{{cite web |author= Kirsti Knolle |url= https://www.reuters.com/article/us-cvc-cap-partnr-takeover-douglas-holdi-idUSKBN0OH2AZ20150601 |title= CVC buys German perfume retailer Douglas |publisher= Reuters |date= 1 June 2015 |access-date= 1 June 2015 |archive-date= 1 June 2015 |archive-url= https://web.archive.org/web/20150601143254/http://www.reuters.com/article/2015/06/01/us-cvc-cap-partnr-takeover-douglas-holdi-idUSKBN0OH2AZ20150601 |url-status= live }}

In September 2015, CVC opened an office in Warsaw.{{cite news|title=CVC opens Warsaw office, hires Krawczyk from Innova|url=https://www.altassets.net/private-equity-news/by-news-type/people-news/cvc-opens-warsaw-office-hires-krawczyk-from-innova.html|publisher=AltAssets|date=17 September 2015}}

In November 2015, CVC and the Canada Pension Plan Investment Board both acquired American pet supplier Petco for a fee of around $4.6 billion.{{cite web|title=CVC, Canada's CPPIB to buy Petco for about $4.6 billion|url=https://www.reuters.com/article/us-petco-m-a-cvc-idUSKBN0TC21P20151123#fATpX2OQvYWkTgBW.97|website=Reuters|date=23 November 2015|access-date=30 June 2017|archive-date=26 November 2015|archive-url=https://web.archive.org/web/20151126181213/http://www.reuters.com/article/2015/11/23/us-petco-m-a-cvc-idUSKBN0TC21P20151123#fATpX2OQvYWkTgBW.97|url-status=live}}

In April 2016, CVC Capital Partners acquired German betting operator Tipico.{{cite news|last1=Langworth|first1=Hannah|title=CVC acquires German betting operator Tipico|url=http://realdeals.eu.com/article/50701|publisher=Real Deals|date=25 April 2016}}

In August 2016, CVC Capital Partners agreed to buy a 15% stake in PT Siloam International Hospitals Tbk, among Indonesia's and Southeast Asia's largest corporate chains of private hospitals.{{cite news|url=https://www.reuters.com/article/us-siloam-intl-hosp-m-a-cvc-cap-partnr-l-idUSKCN1140YY|title=CVC to buy 15 percent of Indonesian hospital operator Siloam from...|newspaper=Reuters|date=29 August 2016}}

In September 2016, CVC Capital Partners agreed to sell control of the Formula One Group to John Malone's Liberty Media in a deal worth US$4.4bn. The two-part deal would see the US media group buy 18.7 per cent of the F1 parent company Delta Topco for $746mn in cash from a consortium of shareholders led by CVC. In 2017, a second payment of $354mn in cash and $3.3bn in newly issued shares in a Liberty Media tracking stock saw Liberty Media assume full control of Formula One once the deal was approved by regulators, the FIA and Liberty's shareholders.{{Cite news|url=https://www.bbc.co.uk/news/business-37303230|title=US media firm Liberty Media to buy Formula 1|work=BBC News|date=8 September 2016|access-date=2016-09-08}}

In October 2017, CVC Capital Partners acquired Dutch global provider of compliance and administrative services firm TMF Group for €1.75 billion.{{Cite web|url=https://www.cvc.com/media/news/2017/2017-10-27-cvc-fund-vii-agrees-to-acquire-tmf-group/|title=CVC Fund VII agrees to acquire TMF Group|date=27 October 2017}}{{Cite web|url=https://www.ft.com/content/3f42e303-40df-4589-86e6-84d1642c06ef|title=Private equity firm CVC sells TMF Group stake to its own fund|work=Financial Times|date=25 July 2022}}

In May 2018, CVC Capital Partners paid $160 million for the acquisition of OANDA Global Corporation (OANDA),{{Cite web|url=https://www.cvc.com/media/news/2018/2018-05-02-cvc-asia-fund-iv-agrees-to-acquire-oanda/|title=CVC Asia Fund IV agrees to acquire OANDA|date=2 May 2018}}{{Cite web|url=https://www.financemagnates.com/forex/brokers/exclusive-details-oandas-landmark-purchase-cvc-partners/|title=Bargain Hunters? Exclusive Details on the OANADA-CVC Acquisition|work=Financial Magnates|date=18 June 2018}} a global online retail foreign exchange trading platform, currency data and analytics company headquartered in Toronto, Ontario, Canada.{{Cite web|url=https://www.mccarthy.ca/en/work/cases/cvc-capital-partners-asia-fund-iv-acquires-oanda-global-corporation|title=CVC Capital Partners Asia Fund IV acquires OANDA Global Corporation|work=McCarthy Tétrault LLP|date=15 October 2018}}

Towards the end of 2019, CVC Capital Partners purchased Ontic from BBA Aviation for $1.365 billion.

In August 2021, Spain's La Liga clubs approved a €2.7 billion deal to sell 10% of the league to CVC Capital Partners.{{cite web |url=https://www.digitaltveurope.com/2021/08/13/laliga-clubs-approve-e2-7-billion-sale-of-stake-to-cvc-capital-partners/ |title=LaLiga clubs approve €2.7 billion sale of stake to CVC Capital Partners |website=digitaltveurope.com |date=13 August 2021 }} However, Goldman Sachs contributed a €1 billion loan to CVC to complete the deal.{{cite web |url=https://www.reuters.com/article/spain-soccer-privateequity-goldman-sachs/update-1-goldman-to-lend-1-bln-euros-to-cvc-for-laliga-deal-sources-say-idUSL1N2PI161 |title=Goldman to lend 1 billion euros to CVC for LaLiga deal, sources say |website=Reuters |date=11 August 2021 }}

On 25 October 2021, Irelia Company Pte Ltd. (CVC Capital Partners) bought the Ahmedabad-based Indian Premier League cricket franchise (Gujarat Titans) for {{INRConvert|56250|m}}.{{cite news |title=New IPL teams: CVC Capital wins bid for Ahmedabad, RPSG Group gets Lucknow |url=https://www.business-standard.com/article/companies/ipl-cvc-capital-partners-gets-ahmedabad-rpsg-group-gets-lucknow-121102501288_1.html |newspaper=Business Standard India |access-date=26 October 2021 |date=25 October 2021|agency=Press Trust of India }}

In November 2021, CVC acquired the bulk of Unilever's tea division, Lipton Teas and Infusions for £4.5 billion. It included 34 tea brands.{{Cite news|url=https://www.reuters.com/business/unilever-strikes-5-bln-deal-with-cvc-tea-business-ft-2021-11-18/|title=Unilever bags $5 bln deal with CVC for tea business|first=Siddharth|last=Cavale|newspaper=Reuters|date=November 18, 2021|via=www.reuters.com}} [https://web.archive.org/web/20211119034203/https://www.reuters.com/business/unilever-strikes-5-bln-deal-with-cvc-tea-business-ft-2021-11-18/ Archived] The deal also included tea estates in three countries and 11 factories.[https://www.cnbctv18.com/business/companies/unilever-to-sell-tea-business-to-cvc-capital-11521362.htm Unilever to sell tea business to CVC Capital.] CNBC, 19 Nov 2021

In July 2022, CVC sold a near-50 per cent stake in TMF Group to the Abu Dhabi Investment Authority.{{Cite web|url=https://www.ft.com/content/3f42e303-40df-4589-86e6-84d1642c06ef|title=Private equity firm CVC sells TMF Group stake to its own fund|work=Financial Times|date=25 July 2022}} In 2022, co-founder Steve Koltes stepped down from the firm.{{Cite news |title=CVC co-founder Steve Koltes to step down as firm plans to float |url=https://www.ft.com/content/872b42a8-7685-4684-ac0c-c3c8f5f0be8e |access-date=2024-05-01 |newspaper=Financial Times|date=28 January 2022 |last1=Wiggins |first1=Kaye }}

CVC initially planned to float an IPO on the Euronext Amsterdam stock exchange in 2022.{{Cite news |title=CVC co-founder Steve Koltes to step down as firm plans to float |url=https://www.ft.com/content/872b42a8-7685-4684-ac0c-c3c8f5f0be8e |access-date=2024-05-01 |newspaper=Financial Times|date=28 January 2022 |last1=Wiggins |first1=Kaye }} The float was delayed, citing market disruption caused by inflation and the invasion of Ukraine.{{Cite news |title=CVC's biggest bet yet: the fiercely private buyout firm set to go public |url=https://www.ft.com/content/86ce59dc-8625-4000-a52f-603046354d19 |access-date=2024-05-01 |newspaper=Financial Times|date=12 October 2022 |last1=Faunce |first1=Liz |last2=Wiggins |first2=Kaye |last3=Campbell |first3=Chris |last4=Massoudi |first4=Arash }}{{Cite web |last=Conchie |first=Charlie |date=2022-05-11 |title=CVC pulls back from IPO as turbulence hits |url=https://www.cityam.com/cvc-pushes-back-ipo-plans-amid-market-turmoil/ |access-date=2024-05-01 |website=CityAM |language=en-GB}} The deal was further postponed in 2023. The chief executive of the firm would be Rob Lucas.{{Cite news |last=Cooper |first=Ben Dummett and Laura |title=CVC Drops Planned IPO |url=https://www.wsj.com/finance/banking/cvc-drops-planned-ipo-485d405d |access-date=2024-05-01 |work=WSJ |language=en-US}}

In December 2023, CVC acquired a Japanese pharmacy operator, Sogo Medical, for $1.2 billion.{{Cite web |title=CVC Capital to buy Japan pharmacy operator Sogo Medical for $1.2bn |url=https://asia.nikkei.com/Business/Business-deals/CVC-Capital-to-buy-Japan-pharmacy-operator-Sogo-Medical-for-1.2bn |access-date=2023-12-15 |website=Nikkei Asia |language=en-GB}}

In February 2024 CVC raised $6.8 billion for its sixth Asia fund, its largest to date in the region and 50% larger than the previous $4.5 billion fund raised in 2020.{{cite web |last1=Murdoch |first1=Scott |last2=Wu |first2=Kane |date=21 February 2024 |title=Private equity fund CVC raises $6.8 bln for its sixth Asia fund |url=https://www.nasdaq.com/articles/private-equity-fund-cvc-raises-$6.8-bln-for-its-sixth-asia-fund |access-date=22 February 2024 |website=Nasdaq.com}}{{cite web |last1=Venkat |first1=P.R. |date=21 February 2024 |title=CVC Capital Partners Raises $6.8 Billion for Its Sixth Asia Fund |url=https://www.wsj.com/articles/cvc-capital-partners-raises-6-8-billion-for-its-sixth-asia-fund-18682404 |access-date=22 February 2024 |website=WSJ}} Donald Mackenzie, another co-founder, stepped back from the firm in February 2024.

In February 2024, CVC completed the creation of CVC Capital Partners Asia VI, the sixth fund in Asia. Asia VI is the very previous fund it created in 2020, a 50% increase from AsiaV, which was raised to $4.5 billion.{{Cite web |title=유럽 최대 PEF CVC캐피탈, 6차 아시아펀드 68억달러 조성 |url=https://n.news.naver.com/mnews/article/277/0005383147?sid=101 |access-date=2025-01-07 |website=n.news.naver.com |language=ko}}

On 26 April 2024, CVC listed its shares on the Euronext Amsterdam stock exchange, opening at €17.34. The total offering size was €2.3 billion.{{Cite web |last=Farr |first=Emma-Victoria |date=2024-04-26 |title=Private equity group CVC shares soar on Amsterdam debut |url=https://www.reuters.com/markets/deals/cvc-sets-ipo-price-14-euros-per-share-middle-range-2024-04-26/ |access-date=2024-05-08 |website=Reuters}}{{Cite news |title=CVC shares jump in trading debut after long-awaited IPO |url=https://www.ft.com/content/c0c35ff8-b79f-443a-8a4b-96efc86c1016 |access-date=2024-05-08 |newspaper=Financial Times|date=26 April 2024 |last1=Louch |first1=Will }}

On July 3, 2024, CVC gained a 60% share of DIF Capital Partners with an additional 20% to be acquired shortly after 31 December 2026 and the final 20% to be acquired shortly after 31 December 2028.{{Cite web |title=Completion of acquisition DIF Capital Partners by CVC |url=https://www.cvcdif.com/news-insights/completion-of-acquisition-dif-capital-partners-by-cvc |access-date=2025-02-13 |website=www.cvcdif.com}}

On 23 November 2024, Sky News reported that CVC Capital Partners, TF1, RedBird Capital Partners, All3Media, Mediawan and Kohlberg Kravis Roberts had been linked to a potential takeover bid for ITV plc and a possible break-up of core assets such as ITV Studios and ITVX.{{cite news|url=https://news.sky.com/story/itv-back-in-spotlight-as-suitors-screen-potential-bids-13258866|work=Sky News|title=ITV back in spotlight as suitors screen potential bids|date=2024-11-23}}

• Avast: IT security company{{Cite web|url=https://techcrunch.com/2014/02/05/security-software-firm-avast-takes-cvc-capital-investment-at-a-1b-valuation/|title=Security Software Firm Avast Gets CVC Capital Investment, Now Valued At $1B|last=Lunden|first=Ingrid|website=TechCrunch|date=5 February 2014 |access-date=2016-09-05}}
• Petco Holdings Inc.: major pet supplies retail chain{{Cite news|title = Forget Going Public, U.S. Companies Want to Get Bought|url = https://www.wsj.com/articles/forget-going-public-u-s-companies-want-to-get-bought-1448793190|newspaper = Wall Street Journal|access-date = 2015-11-29|issn = 0099-9660|first = Telis Demos And Corrie|last = Driebusch}}
• RAC: automotive rescue service provider in the UK{{cite web |url=http://news.sky.com/story/1598080/f1-shareholder-cvc-motors-to-2bn-rac-deal |title=F1 Shareholder CVC Motors To £2bn RAC Deal |last1=Kleinman |first1=Mark |date=December 2, 2015 |website=Sky News |access-date=December 3, 2015}}
• TMF Group: Netherlands-based global provider of compliance and administrative services{{Cite web |date=2017-10-27 |title=TMF Group Acquired by CVC Capital Partners |url=https://www.tmf-group.com/en/news-insights/press-releases/2017/october/tmf-cvc-acquisition/ |access-date=2017-11-10 |website=TMF Group |language=en-GB}}
• Gujarat Titans: Indian Premier League team{{Cite web |date=2022-05-30 |title=CVC Capital Partners' cricket franchise Gujarat Titans win Indian Premier League |url=https://www.cityam.com/cvc-capital-partners-cricket-franchise-gujarat-titans-win-indian-premier-league/ |access-date=2022-09-20 |website=CityAM |language=en-GB}}

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