CVC Capital Partners and its investors raised €2 billion in an initial public offering (IPO), bringing the long-delayed listing process for one of Europe’s marquee private equity firms to a resolution.

The buyout firm set its IPO price at €14 per share, in the middle of an initial price range of €13 to €15, according to a statement on Friday. The offer price implies a market capitalisation of €14 billion for the company.

The firm raised €250 million in fresh capital from the share sale, with the rest going to existing holders. If the over-allotment option is exercised in full, the deal size will rise to €2.3 billion.

CVC boosted the total offering by about €500 million on Thursday, reflecting the depth of investor demand for the listing, which was pushed back at least twice over the past two years due to volatile markets. 

The listing will see some already very wealthy private equity individuals in Europe add to their fortunes. Donald Mackenzie, who stepped down in February from an active role in the firm, is selling as many as 10 million shares, according to the IPO prospectus, worth about €140 million at the offering price. Steve Koltes, who stepped back in 2022, is offering as many as 2.3 million shares, valued at almost €32 million.

Other large backers selling shares in the IPO include Singapore sovereign wealth fund GIC Pte, Kuwait Investment Authority and a wealth fund run by the Hong Kong Monetary Authority. 

CVC’s current employees are not selling any shares. That includes co-founder Rolly Van Rappard, who is chair of the listed firm, and managing partner Rob Lucas, who is the chief executive officer. 

The firm manages about €186 billion of assets and owns stakes in companies including Swiss watchmaker Breitling and Lipton Teas and Infusions, according to its website. It was founded three decades ago by Mackenzie, Van Rappard and Koltes among others, growing from a unit spun off from Citigroup Inc into one of Europe’s best-known buyout firms.

Goldman Sachs Group Inc, JPMorgan Chase & Co and Morgan Stanley are the joint global coordinators of the offering. The firm is set to begin trading in Amsterdam under the symbol CVC.
 

  - Bloomberg