CVC Capital Partners, Europe’s largest private equity group, plans to avoid London and go ahead with its multi-billion dollar IPO on Amsterdam’s Euronext stock exchange.
The buyout group has told potential investors that it aims to get listed on the Dutch stock exchange and has set a target of €25 billion for its next private equity fund, according to four people familiar with the matter.
No final decisions have been made about the listing or its timing, and much will depend on developments in the war in Ukraine and its impact on the markets, the people added.
However, the choice of Amsterdam over London by a company with roots in the British capital, where it has had a strong presence since its spin-off from a private equity arm of Citigroup in 1993, would be a blow to the London Stock Exchange.
Britain struggled to attract large and successful listings following its exit from the EU, which ended regulatory equivalency for financial services. She is working on reforms that try to strengthen the stock market.
If the plans go through, CVC would become the first major private equity firm to list publicly, which could become a blockbuster float. The buyout group was valued at around €15 billion 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 list in London for decades last year and raised £300million. It used a model that allowed it to avoid sharing information with shareholders about the sums of money its top executives took home in the form of carried-interest payouts, a lucrative 20 percent of profits successful transactions.
It’s not clear if regulators in Amsterdam would require CVC to disclose details of carried interest payouts. Bridgepoint’s shares rose sharply after last summer’s listing, but have fallen 38 percent since the beginning of this year.
CVC has already created plans This would allow it to keep most or all of the lucrative profits it makes from buying and selling companies in private hands, while passing on the proceeds of its smaller but more predictable management fee income to public investors.
The secretive group manages $122 billion in assets, according to its website. It is best known for businesses such as Formula 1, the Six Nations rugby tournament, the communications company Teneo and the Unilever tea shop.
CVC has taken steps over the past year to bring in outside capital by selling a stake in Blue Owl’s Dyal Capital unit and to increase its asset base by acquiring wealth manager Glendower Capital.
https://www.ft.com/content/831a0d91-ee4d-476c-bd69-8d87c533065f CVC plans to list in Amsterdam versus the London market