European private equity firm Cinven announces the final close of the Sixth Cinven Fund at its hard cap of €7 billion (approximately US$8 billion).
Key highlights
- Strong support from longstanding investors with a re-up rate in excess of 90%;
- Fundraise builds on the successful momentum of €5.7 billion realised value since December 2014;
- Cinven has achieved a smooth management succession, consistent investment strategy, and aligned terms with investors; and
- The Fund reached the hard cap within four months and was oversubscribed by two times its target.
Despite the strong level of demand, Cinven has closed a right-sized fund to invest primarily in Europe in line with its investment strategy focused on high quality businesses with market leading positions and strong cash flows. Cinven will continue to use its long established matrix of sector expertise and local country experience to target companies where it can strategically drive revenue growth both in Europe and globally. Its Portfolio Team, operating across Europe, the US and Asia, will continue to assist its portfolio companies to capitalise on value creation opportunities.
Stuart McAlpine, Managing Partner of Cinven, said:
“We are delighted to announce another successful fundraise, completed rapidly. Cinven’s €7 billion Sixth fund is well positioned to provide an important source of committed, long term capital to businesses in order to achieve sustainable growth and generate attractive returns for investors and their beneficiaries.”
Alexandra Hess, Partner of Cinven with responsibility for fundraising and investor relations, added:
“Cinven’s investors from around the world have demonstrated their commitment to Cinven’s team, strategy and ability to invest successfully the Sixth Cinven Fund. We believe their confidence is attributable to Cinven’s excellent track record of investing across Europe through different economic cycles, industry and market conditions; our sector focus; and the ability to accelerate the growth of our companies both in Europe and globally.”
Cinven has been successfully investing in European buyouts for more than 25 years. The Fifth Cinven Fund, raised in 2013, has invested in a total of 17 companies and has made a total of more than 40 acquisitions reflecting the successful buy and build strategies of several of its portfolio companies including Synlab (Healthcare), Heidelberger Leben (Financial Services), and HEG (TMT).
Since January 2015, Cinven has achieved six successful exits including the sales of Guardian Financial Services, the UK life insurance consolidation business, to Admin Re® (4.2x); and Numericable, the French media and telecoms group, to Altice (4.7x). The Fifth Cinven fund has grown by 45% in value during this period and is valued at a net multiple of 1.4x original cost at 31 March.