CVC Capital, F1 Owner, Raises €10.5bn for European Buyouts

A private equity owner of motor racing championship Formula One has raised €10.5bn, the largest fund for European buyouts since the start of the financial crisis.

The group’s marketing push has highlighted the binary nature of the private equity fundraising market since the end of the credit bubble in 2008, as investors rush to back a smaller group of top-performing fund managers, forcing the rest to shrink.

CVC, headed by co-chairmen Donald Mackenzie, Steve Koltes and Rolly Van Rappard, told investors on Sunday that it “formally accepted” €10.25bn in commitments from investors. It said another €250m was in the process of being legally closed by the third quarter. It turned down about €3.5bn of additional pledges.

The group took seven months to raise the money, finishing just as Europe’s new legislation imposing new rules to market funds in the region starts to take effect on Monday.

“They timed it very well, saying ‘lads, we’re going to get this done before’. The deadline provided an anchor,” Jim Strang, managing director at Hamilton Lane in London and an investor in CVC funds, said. Source


Tags: CVC Capital, CVC, CVC funds, F1, Formula One, Private Equity, Private Equity firm, Motor Racing Championship, Buyout, European buyouts, Donald Mackenzie, Steve Koltes, Rolly Van Rappard, Jim Strang, Hamilton Lane.

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