CVC Hits Record €200B AUM As Fee-Paying Assets Surge 50%, Delivers 31% EBITDA Growth

What's Happening

CVC Capital Partners reported strong 2024 full-year results following its April IPO on Euronext Amsterdam, with total AUM reaching €200 billion and fee-paying AUM growing 50% to €147 billion.

The global alternative asset manager delivered 31% EBITDA growth to €966 million, driven by a 40% increase in management fee earnings (MFE) with margins expanding to 59%.

Why It Matters

• Post-IPO Validation: Strong financial performance validates CVC's transition to public markets and positions the firm for continued expansion

• Diversification Success: Credit, Secondaries and Infrastructure now represent €68 billion (46%) of fee-paying AUM, reducing reliance on core private equity strategies

• Channel Expansion: Rapid growth in Private Wealth (200% YoY) signals success in tapping retail investors beyond traditional institutional channels

• Market Recovery: 71% increase in deployment and doubled realisations demonstrate return to active investment landscape despite macroeconomic uncertainty

The Key Moves

• Record Fundraising: Activated Europe/Americas Fund IX (largest private equity fund globally) and Asia VI, both exceeding hard caps

• Private Wealth Acceleration: Launched evergreen products CVC-CRED (approaching €1B) and CVC-PE (€250M raised in first weeks)

• Strategic Acquisitions: Completed acquisition of Infrastructure business and remaining shareholding in Secondaries business

• Resource Expansion: Building dedicated Private Wealth team to 60+ professionals (up from 5 at IPO) and investing in AI capabilities

By The Numbers

• Management Fee Earnings Margin: 59%, up from 52% in 2023

• Capital Deployment: €25.6 billion across strategies, up 71% YoY

• Realisations: €13.1 billion, more than doubled from €6.1 billion in 2023

• Investment Performance: Private Equity exits delivered 4x gross MoM and 30% IRR

• European Direct Lending IV: €7.6 billion secured vs. €6 billion guidance

• Secondaries Fund VI: Over $3.5 billion raised toward $7 billion target

• Available Deployment Capital: Over €40 billion across seven strategies

• Planned Dividend: €225 million for H2 2024 (subject to AGM approval)

Key Players

• Rob Lucas (CEO): Emphasized 2024 as a landmark year with strong growth across all metrics

• Fred Watt (CFO): Highlighted operational efficiency and targeted investments for growth

• Rob Squire (Head of Client and Product Solutions): Focused on Private Wealth expansion and diversified fundraising sources

• Ken Young (COO): Noted the advantage of CVC's Network in originating private credit opportunities

Analyst Sentiment

• Positive: Strong financial growth and deployment recovery

• Supportive: Progress in Private Wealth channel with evergreen products gaining traction

• Constructive: Expansion into Insurance channel presents significant opportunity

• Optimistic: European market position seen as advantageous for investment opportunities

• Watching: PRE (embedded carry) development and potential timing of Fund VIII carry activation

• Cautious: Extended fundraising timelines compared to historical experience

Key Questions

• Will CVC pursue M&A opportunities in US private credit markets?

• What is the timeline for launching Secondaries and Infrastructure evergreen products?

• How might potential partnerships with public managers enhance Private Wealth distribution?

• What exit conditions are needed for more IPOs and strategic sales vs. sponsor-to-sponsor transactions?

• Is the accelerated investment in growth initiatives a one-time step-up or multi-year program?

Key Quotes

• Rob Lucas (CEO) on M&A opportunities: "Our primary focus is on the existing seven strategies. And I think we've got a huge opportunity to scale and build those... Having said that, we have always said that if the right inorganic opportunities came along, then we would look very carefully at those. And we have highlighted in the past US private credit. That remains the case, but we would be very selective."

• Rob Squire (Head of Client and Product Solutions) on evergreen product timeline: "In terms of timing for the next wave of these products, again, I'm not going to get pinned into a specific quarter. I would say that over the course of the next 12 to 18 months that for both Secondaries and Infrastructure, we would anticipate bringing their evergreen products to the market."

• Rob Squire (Head of Client and Product Solutions) on Private Wealth partnerships: "We see a lot of opportunity for partnership, I will say, in both the more traditional distributors, to an earlier question, but as well as partnering with other forms of asset management. That being said, at the moment we've got our game plan that we're executing as we go plural with CVC-CRED, as we go through that initial phase with CVC-PE."

• Rob Lucas (CEO) on exit environment: "Strategic buyers have yet to fully return, and the IPO market remains subdued. As a result, exits continue to be disproportionately driven by sponsors, and this accounted for 52% of realisations in 2024 vs. our historical average of approximately 40%."

• Fred Watt (CFO) on growth investments: "Given the lower opex growth rate in 2024 and the acceleration of growth investments, we expect cost growth in 2025 to be higher than 2024. However, with strong top-line growth expected, we remain confident that MFE earnings will stay on plan."

The Wrap

CVC's inaugural full-year results as a public company showcase impressive growth across all key metrics, with the firm successfully diversifying beyond its private equity roots.

Management's disciplined approach to costs balanced with strategic investments in Private Wealth, Insurance and AI capabilities positions the company for sustainable expansion. With substantial deployable capital, CVC is well-positioned to capitalize on market dislocations while its strong investment performance (evidenced by 4x MoM exits) underpins confidence in future fundraising and earnings growth.

Investors can expect high single-digit MFE growth in 2025, progressive dividends, and continued strategic expansion across multiple investment strategies and distribution channels.