The fourth Cinven fund completes fundraising at €6.5 billion
- Largest fund ever raised dedicated to European buyouts
- Raised from diverse investor base and over-subscribed
- Significantly exceeds €5 billion target
- Investors attracted by investment track record, pan-European focus and sector expertise
European private equity firm Cinven today announces the completion of fundraising for the fourth Cinven fund [“the fund”] with total commitments of €6.5 billion; the largest fund ever raised dedicated to large, European buyouts.
The fund – which was raised in six months and was heavily oversubscribed at the cap of €6.5 billion – received commitments from more than 100 international institutions. More than ninety per cent of investors in the €4.4 billion third Cinven fund - raised in 2002 - re-invested in the latest fund, with a number of significant new long-term investors joining the list.
The consistency of Cinven’s investment track record since 1988 has made a major contribution to the success of the fundraising as have the excellent returns on the three fully realised investments (NCP, Unique Pubs and Fitness First) of the third Cinven fund. Despite having only realised three investments (out of 18), as at 31 December 2005 the third Cinven fund had returned almost 100% of invested capital to investors.
Cinven’s ability to identify and acquire high quality businesses is based on its truly pan-European, sector-focussed approach leveraging its team of 19 partners - who on average have worked together at Cinven for more than 12 years - and more than 45 investment professionals representing ten nationalities. This expertise has been, and will continue to be, used to invest in leading European businesses with an enterprise value of more than €500 million, where Cinven can use its sector focus and proven value creating strategies to drive EBITDA growth.
Since 1988, Cinven has made investments with a total enterprise value of €55 billion in 88 buyout transactions across Europe, 19 of which have been in excess of €1 billion.
This fundraising completes a process started ten years ago to diversify Cinven’s funding base from three leading pension funds (those of British Coal, the Railway Industry and Barclays Bank who were Cinven’s sole initial funders and remain as important limited partners in the fourth Cinven fund) to a fully diversified internationally diverse group of institutions.
Andrew Joy, partner of Cinven with responsibility for fund-raising, said:
“We are extremely pleased with the support we have had from our existing investors which is a strong vindication of our clear and proven strategy and, most importantly, the strong returns we have generated both from the third Cinven fund and more generally since 1988. It has been particularly satisfying to attract a significant number of important new LPs.
We believe that the combination of our experienced team, sector focus and strong European footprint will continue to deliver exceptional returns for our investors throughout the life of the fourth Cinven fund.”
Robin Hall, managing partner of Cinven, said:
“The third Cinven fund has been the most successful execution of the Cinven investment model to date, and the most geographically diverse. This is no coincidence. We have ensured over the years that the strength and experience of our team has been replicated in key European financial centres.
We are continuing to see a strong pipeline of investment opportunities throughout Europe. With a strong, committed and highly experienced team of more than 45 investment professionals across Europe and a €6.5 billion fund, we are well positioned to remain at the forefront of the European buyout industry.”