CVC Capital Partners Goes Public on Amsterdam Stock Exchange: A New Chapter Begins

2024-04-22 12:46:54

22 April 2024

13:44

Overloaded many times, finally clears the stock market lanes for CVC. On the brink of writing a new chapter, co-founder Donald Mackenzie decided a few weeks ago to pass on the torch.

The big day is set for Friday. The European private equity giant CVC Capital Partners will be listed on the Amsterdam Stock Exchange. The group, which seeks to raise at least 1.8 billion euros through the sale of new and existing sharesannounced a introductory price between 13 and 15 euros.

The company’s listing on Euronext Amsterdam was on the table for Donald Mackenzie for nearly two years, but market volatility had forced him to put operations on hold.

“When we founded CVC in the early 1990s, our ambition was to create a multi-generational company that would continue to thrive long after the founders had left.”

Still, as the planets finally seemed to align, the man who co-founded and co-directed the company for 30 years announced in mid-February that he was handing over the reins to take over the “less operative” costume as honorary president together with Steve Koltes.

A new chapter opens for CVC

“When we founded CVC in the early 1990s, our ambition was to create a multi-generational company that would continue to thrive long after the founders had left. I believe we have achieved that. The company is in very good health and in good hands,” he explained. From now on, “the new generation” led by Rob Lucas (age 61). Rolly Van Rappard, another co-founder, will remain at the helm of the listed entity.

With this listing, the European private equity firm is preparing to open a new chapter. She appreciates it between 13 and 15 billion euros. The banks that participated in the operation already spoke this Monday morning about oversubscription from investors.

In the case of Donald Mackenzie, that should give him between €113m and €150m (with the possibility of over-allotment). The Scotsman is indeed the second largest shareholder in the company (7%) behind the American investment company Blue Owl (8%).

186

Billions of euros

CVC manages around 186 billion euros in assets and stakes in companies such as Breitling watches, Panzani products, Douglas perfumeries…

Deal Master

CVC is the story of a group of former members of Citibank who in 1993 decided to carry out a management-by-out (MBO) of Citicorp venture capital. The group included Donald Mackenzie, Rolly Van Rappard and Steve Koltes.

Today we recognize that Mackenzie helped establish the reputation of CVC in the financial world. “He is a charismatic leader, with outstanding investment judgement,” says Van Rappard.

He is also the spearhead for lucrative takeover of Formula 1 in 2006, an operation that would have given CVC a 450% return over the following decade.

However, the transaction proved controversial and led to Mackenzie being put in the hot seat by a German court which suspected him of undisclosed payments involving then F1 boss Bernie Ecclestone and a banker.

Rugby, football or even volleyball under your belt

It doesn’t stop at F1. Under his leadership, CVC also invests in the Six Nations tournament (rugby), the Spanish Liga (soccer) and the Men’s Volleyball World Cup.

In total, CVC also has around 186 billion euros in assets and stakes in companies such as Breitling watches, Panzani products, Douglas perfumeries, etc. In Belgium, This summer, CVC bought 22.5% of manager within HR services SD Worx.

The profile

  • 67 years
  • Graduated in accounting from the University of Dundee in Scotland.
  • He began his career in private equity at 3i Group in London.
  • In 1988 he joined Citicorp venture capital.
  • In 1933, with Rolly van Rappard and Steve Koltes, he created CVC.
  • In February, he announced that he would become honorary chairman and non-executive director of CVC.

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