CVC posts record exits and higher fee-paying assets; shares rise
Investing.com -- CVC (AS:CVC) reported an increase in fee-paying assets under management in the third quarter and record realisations over the past year, sending shares higher on Friday.
The private-markets firm said fee-paying AUM rose to €142 billion at the end of September from €140 billion in June.
Gross inflows reached €17.8 billion in the 12 months to Sept. 30. The update said Credit and Secondaries added €6.4 billion year on year, while Private Equity declined due to exits and step-downs.
CVC posted €17.6 billion in realisations in the 12-month period, up from €13.1 billion in 2024 and €6.1 billion in 2023.
The exits delivered a 3.2x gross MOIC and a 25% IRR for Private Equity. More than €3 billion in additional exits were signed in the fourth quarter.
The company said it has returned more capital than deployed across its Private Equity funds over the past three years and maintained guidance for €240 million to €250 million in full-year performance-related earnings.
Chief executive Rob Lucas said, “We continue to deliver strong growth across our Credit and Secondaries platforms,” and flagged “12% LTM EBITDA growth across Private Equity.”
Deployment totalled €22.8 billion in the 12-month period, led by Credit, which accounted for €10.4 billion.
Private Equity deployment remained in line with what the firm described as a three- to four-year cycle.
Infrastructure deployment reached €2.1 billion, and the firm said DIF VIII made its first investments when activated on Oct. 1. VA IV is expected to be activated before year-end.
Fundraising advanced across several platforms. EUDL IV closed at €10.4 billion, beating its €6 billion target and surpassing the €6.3 billion raised by its predecessor in 2022.
CLO Equity IV collected more than $800 million and is expected to reach $1 billion in early 2026. SOF VI raised $7.1 billion, above its $7 billion target, and is expected to hold a final close in 2026.
Initial closings began for DIF VIII and VA IV, which have a combined €8 billion target for final close in 2026.
CVC said portfolio value across Private Equity and Infrastructure rose 3% in the third quarter and 8% over the year. Private Equity EBITDA increased 12% in the same period. The firm said all material funds were performing on or above plan.
CVC expanded its Secondary Partners unit into credit secondaries with a global platform aimed at a diversified mix of credit-related positions.
In its Private Wealth channel, the firm reported about €3 billion in aggregate value across evergreen Private Equity and Credit products, up 69% from the previous quarter.
The company paid a €250m interim dividend on Oct. 6. It also launched Capital Solutions IV in October with a €2 billion target and appointed Catherine Keating as a non-executive director effective Jan. 1.
