CVC Capital Partners is set to go public on the Euronext Amsterdam, with a price range between $14 and $16 per share, valuing the company from $14 billion to $16 billion. Cofounders Donald Mackenzie and Rolly van Rappard are expected to become billionaires from the deal, with Mackenzie’s 6% stake worth $890 million and van Rappard’s 6.7% stake worth $1 billion. Van Rappard’s family office, Steflot, held $224 million in net book value, and Forbes estimates his worth to be at least $1.2 billion.
The private equity firm will pay out a $327 million dividend to its shareholders before the IPO, with Mackenzie and van Rappard expected to receive $23 million each, and Koltes receiving $14 million. CVC was established in 1981 as the European operations of Citicorp Venture Capital, before being spun out as CVC Capital Partners in 1993. The firm now has $198 billion in assets under management and offices in 29 cities across six continents. Known for its investments in sports, CVC has holdings in multiple companies including Petco, Multiversity, Breitling, and various sports investments.
CVC’s revenue in 2023 was $1.2 billion, consisting mainly of management fees, with an EBITDA of $692 million. The IPO could be affected by market conditions, including tensions in the Middle East and interest rate cuts in the U.S., which have impacted the stock prices of other asset management firms. The European Central Bank’s expected rate cuts may offer growth opportunities for companies like CVC in Europe. The largest shareholder in CVC is Blue Owl Capital, holding an 8% stake that will be worth $1.2 billion at the midpoint price.
Cofounder Steve Koltes will also see a boost in his net worth, with his 4.2% stake after the IPO worth $620 million. Two longtime CVC executives, Rob Lucas and Javier de Jaime Guijarro, will retain all their shares in the firm, with their stakes worth $530 million and $520 million at the midpoint. CVC has a multi-pronged approach, including private credit and infrastructure investments, which is a growing asset class for private equity firms.
The IPO of CVC will bring the firm into the public market during a time of a boom in European IPOs. The successful public offering is expected to generate significant wealth for the founders and key executives of the company. The firm’s strong track record in investments, particularly in sports and other high-profile industries, has contributed to its success and growth over the years. With assets under management of $198 billion and a diverse portfolio of investments, CVC is poised to continue its growth and expansion in the global market.
