CVC Capital Partners: Management meeting takeaways

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CVC Capital Partners: Management meeting takeaways

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CVC Capital Partners

Management meeting takeaways

Maintain Rating: BUY | PO: 17.50 EUR | Price: 12.84 EUR

Reiterate Buy rating, undervalued on 14x 2027E PE 20 May 2026

We recently hosted investor meetings with CFO Fred Watt and COO Ken Young. CVC Equity

believes it is well-placed to benefit from growing divergence in fundraising as LPs

Hubert Lam >>

become more selective given slower distributions and allocations near target. Despite Research Analyst

the tough exit backdrop, CVC has returned ~40% more capital than it has called since MLI (UK) +44 20 7996 7112

end-2021, reflecting the underlying health of the portfolio, conservative marks, and less hubert.lam@bofa.com

reliance on the IPO market. We think CVC is on track to achieve ~10% AUM CAGR, Christiane Holstein >>

reaching EUR200bn by 2028, driven by diversified fundraising with 1/3 each from Research Analyst MLI (UK)

private equity, credit, and secondaries/ infrastructure. PRE estimates for 2026 are de- christiane.holstein@bofa.com

risked, supported by recent announcements in Fund VII. In our view, CVC is undervalued Conor Callaghan >>

on 14x 2027E PE, and we see strong upside when capital markets start to recover. ResearchMLI (UK) Analyst

conor.callaghan@bofa.com

Confident fundraising outlook

Fundraising for the next flagship Europe/Americas Fund X is expected next year and

presumed to be at least as big as its predecessor which was a record size. LPs like its Stock Data

diversification of 30-40 investments where there are more options to exit and exposure

to Europe where CVC sees potential for higher returns given market inefficiencies. CVC’s Price 12.84 EUR

expertise in Europe acts as a competitive moat against US players.