Private equity giant CVC makes ‘strong recovery’ as capital deployment ramps up

Private equity giant CVC saw activity tick up in the first half of the year, recovering from a quiet 2023 as money finally began to flow into its investments.

The Six Nations owner beat expectations with fee-paying assets under management at 127.5bn euros, two per cent ahead of analyst expectations, it revealed in a half-year update today.

Gross inflows were especially impressive, sitting at 38.3bn euros compared to an expected 33.9bn euros, thanks mostly to the activation of its flagship funds in May.

The company’s stock price rose over five per cent on the Amsterdam Stock Exchange after reporting the strong results, coming close to its highest level since it floated in April.

CVC’s deployments recovered in the first half of the year to 13.4bn euros, up 63 per cent compared to the first half of 2023 and almost matching the total amount deployed in the entirety of the year.

Figures were similar for realisations, with 9.4bn euros in the first half of 2024, compared to 4.5bn euros in the first half of last year and 6.1bn euros throughout the entire year. The vast majority of this, 89 per cent, came from private equity, and was driven by an increase in corporate and sponsor M&A.

Infrastructure deployment was “particularly selective” but key funds are now 55-65 per cent deployed and CVC still expects the next generation to be launched in the first half of 2025, with an aggregate target size of 8bn euros.

“Despite continued macroeconomic and geopolitical uncertainty, we are pleased by the recovery in deployment and realisation activity, and the continued resilient performance across our portfolio,” Rob Lucas, CVC’s chief executive, said.

“In addition, we are delighted to have completed our acquisition of CVC DIF and the acquisition of the final stake in CVC Secondary Partners. Overall, we are encouraged by our H1 performance, and we believe this represents a good start to delivering on our full year targets for 2024,” he added.