European Private Equity CVC Capital Partners Defies Market Pessimism, Weighs Amsterdam IPO Next Week

CVC Capital Partners, one of Europe's leading private equity groups with €161 billion under management, is set to make an audacious move by announcing its intention to go public in Amsterdam. 

This decision comes as the private equity giant looks to defy the current mood of geopolitical uncertainty and rising interest rates, which have dampened investor enthusiasm for new listings. 

In a departure from the typical IPO approach, CVC intends to create an entity that will sell shares to the public, entitling investors to a slice of the management fees and carried interest, representing a share of the profits from investments.

This strategic move will allow CVC's existing shareholders, including Singapore's GIC, the Kuwait Investment Authority, the Hong Kong Monetary Authority, and the U.S. asset manager Blue Owl Capital, to reduce their holdings. 

However, the specific timing of the IPO remains fluid and may be adjusted depending on the geopolitical landscape, particularly the ongoing conflict in the Middle East. 

The uncertainty last year, stemming from Russia's invasion of Ukraine, forced CVC to postpone its IPO plans.

If CVC formally announces its IPO plans next week, its shares could start trading in the following month, as per Euronext's regulations, Financial Times reported. 

Blue Owl's Dyal Capital unit, which purchased a stake in CVC in 2021, is unlikely to divest its holdings during the IPO and might even consider increasing its stake. The other three investors, who acquired their stakes over a decade ago, are also expected to maintain their positions.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.