Buyout giant raises £5.7bn for European fund

Billy Bambrough
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In 2015 some 689 private equity funds raised £218bn of capital (Source: Getty)

European private equity firm Cinven has raised €7bn (£5.7bn) from investors for its sixth fund.

The fund was raised in four months and was oversubscribed for its original target of €5.5bn.

Cinven’s last raising put together a fund of €5.7bn in December 2014, and led to investment in 17 companies, and 40 acquisitions.

Over 90 per cent of investors in the last fund have chosen to reinvest in this year’s raising. Investment in to the fund from the Middle East decreased, while it rose from Latin American investors.

Read more: Why there could be a post-Brexit burst of private equity activity

“Cinven’s €7bn sixth fund is well positioned to provide an important source of committed, long term capital to businesses in order to achieve sustainable growth and generate attractive returns for investors and their beneficiaries,” said Stuart McAlpine, Cinven managing partner.

Private equity firms typically invest in companies for around four to six years before seeking an exit on their investment. They raise fresh funds from the likes of pension, insurance funds, and sovereign wealth funds every few years.

The size of Cinven’s war chest is almost equal to rival European fund Apax Partners’ latest haul of £5.8bn.

Cinven currently has €11bn in assets under management and has invested in 117 companies with proceeds of about €30bn since 1998.

Read more: How the UK led private equity activity to four-year high in 2015

“Cinven’s investors from around the world have demonstrated their commitment to Cinven’s team, strategy and ability to invest successfully the sixth Cinven fund,” said Alexandra Hess, Cinven partner with responsibility for fundraising and investor relations.

Last year, some 689 private equity funds raised $288bn (£218bn) of capital, according to data provider Preqin.

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