Steady start for CVC Credit as it eyes further growth in lending
CVC CREDIT Partners, the credit firm linked to CVC Capital, yesterday reported inaugural results for its listed European fund showing a rise in net asset value (Nav) of investments for last year.
The company, which floated on London’s stock market in June, said it made an absolute return on funds invested of 3.31 per cent for the sterling class of shares and 3.19 per cent for the euro class.
The rise in Nav was in line with expectations, the company said. It said it expects a Nav total return of eight per cent to 12 per cent “after the initial ramp up period.”
The business, chaired by Richard Boleat, was founded and floated with the purpose of investing mainly in senior secured sub-investment grade corporate credit instruments.
Its biggest backer is currently BlackRock, it revealed yesterday, which owns just over 10 per cent of the company’s shares.
CVC Credit said most investments since it floated had been made in the UK, with 29.2 per cent invested there and a further 25.8 per cent invested in French assets.
It revealed French firm OGF was its biggest holding, representing 5.5 per cent of Nav, with UK retailer Boots the second biggest holding at five per cent of Nav.
Earlier this month the business said it was considering a C-share issue to raise more capital to invest in debt instruments but it gave no further details about a potential fundraising yesterday.