CVC to launch IPO: these private equity companies could be next

CVC, the giant European private equity company, is preparing a blockbuster Initial Public Offering (IPO) that could value it at over €16 billion. The company is expected to go public in Amsterdam, making it the biggest PE firm to list this year.

CVC is planning an IPO in Amsterdam

As with other PE companies, CVC is not a company that is well known by the public. But most people have used some of the companies it has invested in the past. For example, it owns Authentic Brands, the parent company of Forever 21, Nine West, David Beckham, and Shaquille O’Neal brands.

CVC has also invested in companies like Breitling, Teneo, Douglas, La Liga, Oanda, and Paysafe. It has over €182 billion in assets under management, making it one of the biggest European private equity companies. 

CVC has also had a lot of success in the fundraising market as it brought in €26 billion in 2023, beating many rivals. 

CVC’s IPO is coming at a time when the private equity industry is going through major changes. The first major change is that most companies in the sector have pivoted to private credit, leading to trillions in assets. In a recent report, the Federal Reserve estimated that private credit had over $1.7 trillion in AUM.

CVC has a small but growing stake in the private credit industry. According to its website, its private credit business has over 11 billion euros in assets and has made over 80 primary investments. This means that it has more room to grow to match its big US rivals. 

Blackstone has over $400 billion in credit assets while Apollo has $460 billion. This month, we wrote that Blue Owl had agreed to acquire Kuvare Asset Management. Blue Owl has a small stake in CVC.

The other big theme in the industry is infrastructure. CVC enters the industry through its buyout of DIF Capital, which brought in over 17 billion euros in assets. Earlier this year, Blackrock agreed to buy Global Infrastructure Partners in a $12 billion deal.

Private Equity stocks are soaring

Partners Group vs EQT vs Carlyle Group vs Apollo stocks

Most importantly, CVC’s IPO is coming at a time when private equity stocks are in a strong uptrend. In Switzerland, Partners Group’s shares have surged to a record high as inflows in the sector rise. Similarly, in the United States, companies like Apollo, Blackstone, KKR, and Carlyle have continued rising, and, in some instances, are trading at their all-time highs.

Therefore, if CVC’s IPO does well, it means that other European and US private equity companies may consider going public. Ardian, a private equity firm with over $164 billion in assets, may consider launching an IPO. 

In 2023, the company said that it would either go public or acquire another firm to grow its assets. Some analysts believe that Ardian would acquire Tikehau Capital, a leading company with over 42 billion in assets.

General Atlantic, an American PE firm may also consider going public this year. The company is best known for backing firms like Facebook, Bytedance, Coupa, and ABB. It has made initial steps to go public by filing confidential documents with the SEC. It has over $77 billion in assets.

The other big private equity company that could launch its IPO is Silver Lake, a giant firm with over $103 billion in assets. Silver Lake’s portfolio is made up of companies like Exact, Endeavor, Equinox Group, Jio Platforms, and WP Engine. Still, unlike General Atlantic and Ardian, Silver Lake has not hinted that it would go public.