Information on the target
CVC Secondary Partners, a dedicated platform of CVC focused on the secondary market of private markets, has successfully closed its final round for the Secondary Opportunities Fund VI (SOF VI) with total commitments of $10 billion. This includes funds and parallel accounts, as well as commitments from CVC and its employees. The fundraising nearly doubles the $5.8 billion raised in 2023 by its predecessor, SOF V, and is almost four times the $2.7 billion raised in 2019. This achievement brings the platform's total assets under management to €20 billion, exceeding initial expectations.
SOF VI had a target of $7 billion and had already raised $9.3 billion by the end of June, representing a 60% increase over its predecessor. The final closing at $10 billion surpasses the original target by over 40%. The fundraising involved more than 200 institutional limited partners globally, with approximately 50% of the total commitments coming from new subscribers. SOF VI will continue to invest in the mid-market of secondary private equity, focusing on buyout funds managed by selected general partners while maintaining a dual strategy approach.
Industry overview in the target’s specific country
The Investment Holding Companies (NEC) industry in the target country has been experiencing significant growth, driven by the increasing demand for diversified investment strategies and the need for capital allocation across various sectors. This growth is particularly evident in the secondary market, where investment holding companies are playing a crucial role in facilitating liquidity and providing access to mature portfolios for institutional investors.
In recent years, the secondary market for private equity has expanded at an annual rate of approximately 20%, supported by the broader expansion of primary private equity and the active management of portfolios by limited partners. Investment holding companies in this sector are uniquely positioned to capitalize on these trends, as they can leverage their networks and relationships with general partners to identify and execute attractive secondary transactions.
The rise of continuation funds has also contributed to the growth of the Investment Holding Companies (NEC) industry, allowing investors to maintain exposure to high-quality assets while providing general partners with the necessary capital to continue managing their portfolios. This trend has created a dynamic environment for investment holding companies, which are increasingly seen as essential players in the private equity landscape.
Furthermore, the strategic focus of investment holding companies on both LP-led and GP-led transactions enables them to navigate the complexities of the secondary market effecti…