Private equity giant CVC raises £300m for listed credit fund

 
Michael Bow
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PRIVATE equity firm CVC Group yesterday floated a new credit fund for €351.2m (£300.2m) in the second biggest flotation of an alternatives fund in London since 2008.

CVC Credit Partners, an investment management arm of CVC Group which was founded in 2006, will use the cash to target sub-investment grade debt.

It will concentrate on secured senior loans from between 25 and 40 small European companies across the continent in a bid to replace the gap left by banks in the leveraged loan market.

The CVC Credit Partners European Opportunities, as the listed fund is called, will start trading on the London Stock Exchange on Tuesday.

The fundraising, led by Goldman Sachs and Dexion Capital, exceeded its initial fundraising target of €300m.

“This is a strong endorsement of CVC Credit Partners’ track record in the sub-investment grade debt capital markets,” chairman of the new fund Richard Boleat said.

The move by CVC to list an investment vehicle is a sign of the increasing institutionalism of private equity firms.

Big US buyout giants like KKR and Carlyle Group have moved away from their core private equity functions into a range of listed debt and real estate funds.