CVC Co-Founder Donald Mackenzie Set to Earn €150 Million from Firm's IPO

CVC Capital Partners, a leading European private equity firm, is set to go public on the Amsterdam stock exchange, with co-founder Donald Mackenzie poised to earn €150 million from the IPO, highlighting the growing investor appetite for alternative investment strategies.

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CVC Co-Founder Donald Mackenzie Set to Earn €150 Million from Firm's IPO

CVC Co-Founder Donald Mackenzie Set to Earn €150 Million from Firm's IPO

Donald Mackenzie, the co-founder of European private equity firm CVC Capital Partners, is positioned to earn around €150 million from the company's upcoming initial public offering (IPO) on the Amsterdam stock exchange, according to a report by the Financial Times.

CVC has established a price range for its shares at €13 to €15 per share, implying a total market capitalization of €13 billion to €15 billion for the firm.

Mackenzie, a Jersey-based accountant from Scotland, holds shares in CVC worth between €889 million and €1.03 billion. He co-founded CVC in 1993 after spinning it out of Citigroup and has played a key role in turning it into a successful private equity firm with €186 billion in assets under management.

CVC's IPO, which is expected to start on April 26, 2024, has been oversubscribed multiple times, indicating strong investor demand. The company is offering shares at a price range of €13 to €15, and assuming the shares are priced at the midpoint, CVC and its shareholders will raise up to €1.8 billion in proceeds through the sale of new and existing stock.

Why this matters: CVC's IPO is part of the firm's efforts to transform itself into a diversified asset manager, following its recent acquisitions of infrastructure manager DIF and secondaries manager Glendower. The successful listing of one of Europe's largest private equity firms highlights the growing interest in alternative investment strategies among public market investors.

Mackenzie's co-founders, Rolly Van Rappard and Steve Koltes, are also set to become euro billionaires, with their shares worth €943 million and €609 million respectively, if the company is floated at the midpoint of the €13 to €15 price range this week. "CVC has been looking to launch an IPO for some time, but a previous attempt in November was aborted due to unfavorable market conditions," the Financial Times reported.

CVC has been involved in high-profile deals over the years, including an investment in Formula One, which the group eventually sold to US billionaire John Malone's Liberty Media in a transaction valuing the sport at $8 billion in 2016. The firm's successful track record and the strong investor demand for its IPO underscore the growing appetite for private equity exposure among public market investors.

Key Takeaways

  • CVC Capital Partners, a European PE firm, plans to IPO on the Amsterdam Exchange.
  • Co-founder Donald Mackenzie stands to earn €150M from the IPO, becoming a euro billionaire.
  • CVC has set a price range of €13-€15 per share, implying a €13-€15B market cap.
  • CVC's IPO is part of its transformation into a diversified asset manager.
  • The IPO has been oversubscribed, indicating strong investor demand for private equity.