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The public itemizing of European personal fairness agency CVC Capital Partners will internet one among its co-founders, Donald Mackenzie, a windfall of as much as €150mn.
Mackenzie, who lately stepped again from the corporate he based greater than 30 years in the past, is anticipated to promote both 8.7mn or 10mn shares in Friday’s preliminary public providing, in line with a prospectus printed by CVC on Monday.
If the shares are bought on the focused worth of between €13 and €15 a share, Mackenzie will obtain a payout of between €113mn and €150mn.
Co-founder Steve Koltes will even promote about 2mn shares within the preliminary public providing, netting him a windfall within the tens of tens of millions of euros, the prospectus exhibits. Institutional shareholders together with the Hong Kong Monetary Authority, Kuwait Investment Authority and Singapore’s GIC are additionally planning to promote down their stakes within the enterprise.
The share sale is a part of a broader providing anticipated to be about €1.6bn, which is able to give CVC an implied market capitalisation of between €13bn and €15bn, the doc states. Current staff, together with co-founder Rolly Van Rappard, who’s to change into chair of the listed entity, and managing accomplice Rob Lucas, who’s to be its chief government, will not be promoting any shares.
The choice to announce pricing is the most recent step in the direction of a long-awaited IPO that was delayed twice by tough market situations, first attributable to the warfare in Ukraine after which by the battle within the Middle East. CVC introduced its intention to drift final week.
The IPO prospectus offers a uncommon perception into the possession construction of one among Europe’s largest however most discreet buyout teams. Founded three a long time in the past by a gaggle together with Mackenzie, Van Rappard and Koltes, CVC has been gearing as much as go public for greater than two years.
During that point, each Mackenzie and Koltes have stepped again from the agency they constructed from a Citibank spinout right into a €186bn world funding big.
Mackenzie is the second-largest shareholder within the firm with a 7 per cent stake, rating behind US funding agency Blue Owl, which purchased an 8 per cent holding again in 2021.
The quantity of shares Mackenzie sells will depend on whether or not the group decides to train an overallotment possibility, which suggests it could possibly situation extra shares.
If the overallotment possibility shouldn’t be exercised then Mackenzie will promote 8.7mn shares price between €113mn and €130mn on the goal worth vary. With the total overallotment, he’ll promote 10mn shares valued at as much as €150mn.
After the anticipated share sale, Van Rappard will overtake Mackenzie as the most important shareholder among the many group’s co-founders, the submitting doc exhibits. Koltes presently holds 4.4 per cent of the agency.
If the corporate costs at its higher €15-a-share estimate, Van Rappard’s close to 7 per cent stake could be price roughly €1bn, with Mackenzie’s remaining stake price about €900mn, in line with FT calculations.
Mackenzie, who relies within the low-tax offshore centre of Jersey and hosts family and friends on a 52-metre luxurious superyacht, Grace, is likely one of the personal fairness trade’s best-known dealmakers.
A educated accountant, he started his profession at 3i, one of many UK’s oldest buyout corporations, earlier than leaving to affix Citibank in 1988.
After CVC’s founding in 1993, he led on a few of the agency’s highest-profile offers together with an funding in Formula One, which the group finally bought to US billionaire John Malone’s Liberty Media in a transaction valuing the game at $8bn in 2016.
Since then, he has slowly been decreasing his involvement with the group and has not been named as a key particular person on both of its earlier two funds, the Financial Times beforehand reported.