Cinven Targets Over $12 Billion for New Flagship Fund

(Bloomberg) -- Cinven is aiming to raise more than $12 billion for a new private equity fund, becoming the latest buyout firm to tap rampant investor demand for the asset class, according to people familiar with the matter.

The European private equity pioneer could begin to gauge interest for a euro-denominated global fund after the summer, the people said, asking not to be identified discussing confidential information. Cinven may start gathering commitments later in the year, one of the people said.

Deliberations are in the early stages, and no final decisions on the size and timing of any new fund have been made, according to the people. A representative for Cinven declined to comment.

Cinven only closed its seventh flagship fund at 10 billion euros ($11.8 billion) in 2019. The quick return to seek new capital underscores the ongoing investor appetite for private equity exposure in portfolios amid the low-interest rate environment. On Thursday, Hellman & Friedman closed one of the industry’s largest ever funds at $24.4 billion, while Carlyle Group Inc. and Permira are both chasing large sums for their latest vehicles.

Led by its managing partner Stuart McAlpine, Cinven has been deploying capital at a rapid pace on some of the largest deals in the industry. In February last year, it was involved in Europe’s biggest private equity deal in a decade: the 17.2 billion euro takeover of Thyssenkrupp AG’s elevator business. The buyout was Cinven’s largest ever by some distance, according to data complied by Bloomberg.

It’s currently in talks to take Sanne Group Plc private after making a fifth unsolicited bid for the business service provider and is also competing against Bain Capital for Rolls-Royce Holdings Plc’s ITP Aero division, Bloomberg News reported in June.

Cinven began life in the 1970s as a manager of pensions for coal miners. It launched its maiden independent fund in 1996 and was one of the first U.K.-based private equity firms to target American pension investors and insurers for capital. It has since raised around 37 billion euros for investments, according to its website.

©2021 Bloomberg L.P.