CVC Capital Partners revived plans for an initial public offering (IPO) in Amsterdam, seeking to raise at least €1.25 billion with its investors in a listing that potentially paves the way for other private equity firms to go public.

The company plans to raise €250 million by selling new shares, while existing holders also plan to sell stock, the firm said in a statement on Monday. None of the firm’s active partners are selling in the IPO, according to the statement.

CVC, one of Europe’s best-known buyout firms, manages about €186 billion of assets and owns stakes in companies including Swiss watchmaker Breitling and Lipton Teas and Infusions, according to its website. 

The firm is targeting a valuation of around €13 billion to €15 billion, Bloomberg News reported on Sunday, citing people familiar with the matter

CVC has been working on a listing since at least 2022, with previous attempts buffeted by volatile markets. This time around, a rebound in European IPOs is adding to the chances of a successful stock-market debut. Still, the recovery after an 18-month slowdown has been uneven.

Galderma Group AG, a skincare company backed by CVC’s private equity rival EQT AB, has soared more than 17% above its offer price, and Spanish beauty and fragrance group Puig Brands SA said April 8 it would press ahead with an IPO. 

CVC-backed German perfume retailer Douglas AG suffered a more disappointing stock market debut, however, having slipped about 25% since its March listing. And Spain’s Bergé y Compañía on April 5 scrapped plans to float its Astara unit.

A listing of CVC, which was valued at about US$15 billion when it sold a minority stake to Blue Owl Capital Inc in 2021, will test investor sentiment towards alternative asset managers at a key moment for the industry.  

Funds managed by Blue Owl agreed to invest in as much as 10% of the offering, increasing the funds’ 8% interest acquired in 2021.

Private equity firms have seen the path to exiting investments heavily constrained in recent years, with inflation, high interest rates and elevated volatility weighing on dealmaking. A slowdown in returns has also made it harder for private equity firms to raise new funds.

Still, CVC has had more success than its peers in this regard. It raised €26 billion last year for the world’s biggest-ever buyout fund and has been diversifying its business into new areas including infrastructure and so-called secondaries, or existing portfolios of private equity fund holdings.

A listing will give it fresh acquisition currency in the form of shares and may also encourage other private asset managers to go public. General Atlantic, the investment firm whose bets have included Facebook Inc and Airbnb Inc, confidentially filed for an IPO, while private credit firm HPS Investment Partners did the same more than a year ago, Bloomberg News has reported. 

Stock-market gains for listed European peers such as Bridgepoint Group plc, Partners Group Holding AG and EQT are also boosting sentiment around a CVC listing.
 

  - Bloomberg