In a recent public offering on the Euronext Amsterdam, private equity firm CVC Capital Partners went public at a price of $15 per share, valuing the company at $15 billion. This move led to the creation of two new billionaires, cofounders Donald Mackenzie and Rolly van Rappard. Mackenzie, with a 6% stake, saw his shares rise and sold a portion for $180 million, potentially earning an additional $27 million if the company exercises its over-allotment option. Van Rappard, with a 6.7% stake, is now worth $1.3 billion and did not sell any of his shares.
Van Rappard, originally from Curaçao, lives in London and owns a Luxembourg-based family office with a net book value of $224 million. CVC declined to comment on his valuation, but Forbes estimates his net worth to be at least $1.5 billion. CVC also paid out a $327 million dividend to its shareholders before the IPO, with Mackenzie and Rappard each receiving a significant portion of it. Established in 1981 by eight cofounders, CVC Capital Partners has grown to have $198 billion in assets under management with offices in 29 cities across six continents.
CVC is best known for its investments in sports, such as the Formula 1 racing series and the Spanish soccer league La Liga. The firm’s holdings also include Petco, Multiversity, Breitling, and other high-profile sports investments. In 2023, CVC reported $1.2 billion in revenue, with earnings before interest, taxes, depreciation, and amortization (EBITDA) of $692 million. The firm has a multi-pronged approach, including private credit and infrastructure opportunities.
The IPO of CVC may face challenges due to tensions in the Middle East and market pessimism about U.S. interest rate cuts. However, in Europe, where the European Central Bank is expected to cut rates, there could be stronger growth for asset managers like CVC. The largest shareholder in CVC is Blue Owl Capital, a publicly traded private equity firm that holds a 9.4% stake in CVC. Doug Ostrover and Michael Rees, the cofounders of Blue Owl Capital, have also seen significant wealth growth since going public in 2021.
While Mackenzie and van Rappard became billionaires through the IPO, fellow cofounder Steve Koltes also saw a substantial increase in his net worth. His 4.2% stake is worth around $760 million, with additional earnings from share sales. Koltes’ family office has invested in various ventures, and Forbes estimates his net worth to be more than $800 million. Two longtime CVC executives, Rob Lucas and Javier de Jaime Guijarro, retained all of their shares in the firm after the IPO, with each stake valued at approximately $660 million and $650 million, respectively.
Overall, the IPO of CVC Capital Partners has led to significant wealth creation for its cofounders and key executives. The firm’s strong presence in the private equity market, coupled with its diverse portfolio of investments, positions it well for future growth despite potential challenges in the global market. With a focus on sports investments and a multi-pronged investment approach, CVC continues to be a major player in the asset management industry.
