News & Analysis

driven by the PitchBook Platform
gettyimages-485654973.jpg
Mega-Funds

Cinven raises $14.5B in 2024’s first mega-fund close

Cinven’s eighth flagship fund is the 10th buyout vehicle in 12 months to surpass $10 billion.

London-based private equity firm Cinven has closed its latest flagship fund on $14.5 billion, making it the first mega-fund to close in 2024 and raising the prospect of another year where large funds dominate the PE fundraising landscape.

 

Last year, PE funds secured around $566 billion globally, according to PitchBook’s 2023 Annual Global PE First Look, surpassing 2022’s total. However, this was raised across just 593 funds, the lowest annual fund count since 2012.

As of Q3 last year, mega-funds—funds sized $5 billion or larger—accounted for 47.2% of all capital raised, according to PitchBook’s Q3 2023 Global Private Market Fundraising Report, the highest percentage on record. With market conditions squeezing LPs’ ability to commit to new funds, smaller and less experienced fund managers have found themselves at a significant disadvantage compared to larger funds with more established LP relationships.

Cinven’s eighth fund reached its hard cap and is the firm’s biggest fund to date. It is about 30% larger than its predecessor, which closed in 2019. The firm said it had secured significant re-ups from longstanding LPs as well as new investors.

Stuart McAlpine, managing partner of Cinven, said the fund would target growth-oriented and cash-generative companies in resilient sectors.

It is the 10th largest buyout fund ever to close in Europe, although it only ranks 29th globally. It is also the 10th buyout fund in the last 12 months to raise more than $10 billion.

Several other PE mega-funds look likely to close this year. Blackstone and EQT both have funds open that have already surpassed $17 billion.

Featured image by NoDerog/Getty Images

Join the more than 1.5 million industry professionals who get our daily newsletter!