British buyout firm CVC to acquire Glendower Capital, creating a combined company with €113bn in total AUM

Sep 13, 2021 | News, UKPEC

Private equity firm CVC has agreed to buy Glendower Capital, the companies said on Monday, creating a combined company with total assets under management of about €113bn.

Financial terms of the deal were not disclosed.

Glendower was founded in 2006 as part of Deutsche Bank’s asset management business but spun out by the German lender in 2017. It focuses on secondary buyouts, in which it buys assets from other private equity firms.

The deal comes as investors are pouring money into private equity seeking returns in a low-rate environment and to hedge against stock and bond market volatility with central banks largely expected to cut stimulus in the coming months.

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The purchase of Glendower Capital would allow CVC to expand into secondary buyouts, which have increased in popularity as private equity has grown, providing more options for firms to sell assets in a sector that is traditionally illiquid.

CVC’s co-founder Rolly van Rappard said there was a compelling market opportunity in secondaries in the coming years.

“Glendower’s established platform perfectly complements our existing family of private equity and credit strategies,” he said.

Listed private equity firms have soared this year so far. Sweden’s EQT has nearly doubled in value this year so far while recently-listed British buyout firm Bridgepoint is up 43% since it listed in July.

CVC has been involved in a number of high profile deals this year that include an attempt to buy LaLiga, Spain’s premier football league, and take private of London-listed vodka maker Stock Spirits.

Source: Reuters

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