Cinven Closes in on Record Fundraising of Up to 10 Billion Euros

(Bloomberg) -- Buyout firm Cinven is close to raising as much as 10 billion euros ($11.3 billion), the largest amount the firm has ever raised, for its seventh investment pool, people familiar with the matter said.

The European private equity firm had planned for as much as 8 billion euros but the fund was oversubscribed, the people said, asking not to be identified as the process is private. A final close could be reached in the coming weeks and the value of the fund may still change, they said.

A representative for Cinven declined to comment.

Cinven’s fifth fund -- which investors will look at when they decide whether to participate in the next fundraising -- had a return on investment of 21.8 percent as of the end of September, according to data disclosed from one of its investors, the Washington State Retirement System. Investors in the fifth fund have made 1.4 times their initial investment so far, people familiar with the matter said in October.

The private equity industry, including real estate, debt and venture funds, is sitting on about $1.3 trillion in unallocated capital, according to data compiled by Bloomberg, as institutional investors pour client money into the funds seeking returns.

Investments from Cinven’s sixth fund include the 5.4 billion-euro acquisition of generic drugmaker Stada Arzneimittel AG with Bain Capital.

To contact the reporters on this story: Sarah Syed in London at ssyed35@bloomberg.net;Kiel Porter in Chicago at kporter17@bloomberg.net

To contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, Amy Thomson, Ambereen Choudhury

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