CVC Shakes Up US Division After Deal Performance Issues, FT Reports

What's happening: The Financial Times reports that CVC Capital Partners, one of Europe's largest private equity firms, is overhauling its North American leadership and pursuing acquisitions in private credit after experiencing underwhelming performance in several US deals.

Why it matters:

• Market presence: The move signals CVC's strategic push to strengthen its position in the world's largest economy, where it has struggled to replicate its European success

• Investor pressure: As a newly public company, CVC faces increased scrutiny to improve US performance and grow assets under management

• Industry shift: The leadership change reflects broader challenges European private equity firms face when expanding into the competitive US market

The key moves:

• Leadership: Chris Stadler, 18-year veteran, moves to chair role; Lorne Somerville and Cathrin Petty appointed as new co-heads

• Expansion: CVC actively seeking to acquire a US private credit firm after missing out on HPS Investment Partners

• Strategy: Firm exploring acquisitions in real estate outside Europe to diversify portfolio

By the numbers:

• Assets: €191 billion under management

• Performance: Only 25% of 25 US deals exited since 2008

• Stock surge: Share price up over 50% since IPO

Key players:

• Chris Stadler: Former North America head, now chairman focused on improving existing portfolio returns

• Lorne Somerville: New co-head, transitioning from London office

• Cathrin Petty: New co-head, also moving from London operations

Key quotes:

• Market challenge: "Trying to craft what CVC is in the US, rather than just another firm, is a challenge," according to an unnamed investor in CVC's funds

The wrap: CVC's leadership overhaul represents a critical turning point for the firm as it attempts to transform its US operations and compete more effectively in North America. The success of this restructuring could determine whether CVC can evolve from a European powerhouse into a truly global private equity leader.