CVC Capital Partners is planning the launch of its debut private equity evergreen vehicle for wealth clients, making it the latest fund manager to look beyond traditional sources of PE capital.
In its first Q3 results since its Amsterdam IPO in April, the Luxembourg-headquartered firm said the fund will launch in H1 2025 and target wealth clients seeking exposure to PE without the constraints of traditional closed-end funds.
CVC first explored the strategy with an open-ended private credit vehicle launched in June and said Thursday that it has seen “encouraging” uptake.
Evergreen funds have proliferated in recent years, as the structure provides greater flexibility for individual investors. This shift is fueled by technological innovations, the increasing need to diversify investor bases—especially into private wealth—and the desire to make the private markets more accessible to individual investors. Evergreen funds reached new heights of 65 in 2022 and 55 in 2023, according to a recent PitchBook analyst note.
CVC’s Q3 update Thursday also shows its fee-paying AUM up 47%: from 2023’s €98.2 billion (about $103.4 billion) to €144.1 billion so far this year. The firm’s total AUM has hit €191 billion.
Surging deployment
2024 has been busy for CVC. It reported a 97% increase in deployment through Q3 with €20.7 billion invested, compared with €10.5 billion during the same period in 2023. The firm also noted a 106% increase in realization volumes.
PE deployment increased more than fourfold, reaching €12.3 billion, up from €2.3 billion in 2023. Five new investments were announced in Europe and the Americas, bringing the total number of investments this year to 15, including 11 for its ninth flagship fund.
CVC Secondary Partners has deployed €1.5 billion in 2024, up 193% year-over-year, while CVC’s credit arm has deployed €5.7 billion so far, up 5% from €5.4 billion in 2023.
Meanwhile, realization volumes have more than doubled already to €10.8 billion from €5.2 billion in 2023.
However, CEO Rob Lucas said he expects the volume of realizations in H2 2024 to be lower than in H1, but that overall total year-to-date realizations will remain above that of 2023.
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