CVC gears up for potential listing as soon as November

CVC Capital Partners is gearing up for a potential listing as soon as November, people with knowledge of the matter said, in one of the clearest signs yet that renewed confidence in stock offerings is spreading to Europe.

The private equity firm recently informed advisers about the potential timeline and has started ramping up preparations, the people said, asking not to be identified because the information is private. CVC has been considering listing in Amsterdam, Bloomberg News has previously reported.

A listing of CVC is set to be one of the largest-ever from the European buyout industry and could encourage other firms to flock to the public markets, which are starting to reopen after a prolonged period in the doldrums.

CVC was valued at around $15 billion when it sold a minority stake to Blue Owl Capital in 2021, people with knowledge of the matter have said.

The firm is considering listing as soon as November depending on market conditions, though it hasn't made a final decision and could decide to wait for a later window, the people said. A representative for CVC declined to comment.

The successful $5 billion listing of SoftBank Group's chip designer Arm Holdings in New York earlier this month has already encouraged other companies to come to market in the U.S., including grocery-delivery group Instacart and marketing and data automation provider Klaviyo.

In Europe, a host of firms from Germany, including CVC-backed fleet services group DKV Mobility and perfume retailer Douglas, are leading a group of listing candidates. The fact that CVC, one of Europe's most influential investors, is now weighing IPOs for both its portfolio companies and itself may be taken as a sign that the window for deals will remain open moving into 2024.

CVC said in July it had raised €26 billion ($27.8 billion) for the world's biggest-ever buyout fund, defying a challenging fundraising environment. It's also been pushing into new areas to diversify its business ahead of the listing.

The firm said this month it will expand in one of the hottest areas of dealmaking by acquiring a majority stake in infrastructure specialist DIF Capital Partners, which manages around €16 billion.

CVC agreed to buy London-based Glendower Capital in 2021 to gain a foothold in the fast-growing market for secondaries. It also runs other strategies from credit and direct lending to growth investments.

These moves come as major institutional investors increasingly dedicate money to larger private equity firms that can offer a "one-stop shop" through a range of strategies, rather than doling out smaller chunks to an array of different providers. CVC is one of Europe's largest private equity firms, with around €140 billion under management, according to its website.