European Private Equity CVC Capital Partners Defies Market Pessimism, Weighs Amsterdam IPO Next Week
Portfolio Pulse from Vandana Singh
European private equity firm CVC Capital Partners, with €161 billion under management, is planning to go public in Amsterdam. The firm aims to create an entity that will sell shares to the public, allowing investors to partake in management fees and carried interest. This move will enable existing shareholders, including Singapore's GIC, the Kuwait Investment Authority, the Hong Kong Monetary Authority, and US asset manager Blue Owl Capital, to reduce their holdings. The IPO timing remains uncertain due to geopolitical factors.
October 19, 2023 | 1:25 pm
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Blue Owl Capital, a US asset manager and a shareholder in CVC Capital Partners, may reduce its holdings following CVC's planned IPO. However, its 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 IPO of CVC Capital Partners could lead to a reduction in holdings by Blue Owl Capital, which could impact its asset base. However, the potential increase in stake by its Dyal Capital unit could offset this impact, leading to a neutral short-term price direction.
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