Glendower Capital, CVC’s secondaries platform, has hit the final close of its fifth global secondary private equity fund, Glendower Capital Secondary Opportunities Fund V (SOF V), at $5.8 billion, according to a press statement.
SOF V is the first fund closed since Glendower completed a strategic merger with CVC in 2022.
Glendower operates in the private equity secondaries mid-market, targeting buyout fund investments managed by high-quality GPs. The fundraising concluded at the hard cap and represents the next stage of growth for Glendower’s successful two-pronged strategy in private equity secondaries, which provides balanced exposure to portfolio sales by LP investors as well as GP-led transactions.
The firm closed its fourth fund at $2.7 billion in 2019. Glendower today manages $13 billion in AUM across its private equity secondary funds with a team of over 35 dedicated investment professionals. It has completed over 175 secondary transactions.
Glendower CEO and managing partner Carlo Pirzio-Biroli said, “The completion of this fundraise is another significant milestone for us, and we continue our mission to be a lead investor and key partner of choice for LPs and GPs globally. The opportunity for our investment strategy has never been greater and we look forward to deploying this capital into a highly attractive secondary market environment.”
The fundraising attracted investment from a diversified and global institutional investor base of over 230 returning and new limited partners.
CVC managing partner Rob Lucas said, “With access to the broader CVC network, the secondaries platform is well-positioned to continue to deliver sustainable value for our investors in this growing market segment, and we look forward to the continued success of this strategy.”
CVC manages more than €140 billion of AUM globally across its six complementary strategies comprising CVC Europe/Americas, CVC Asia, CVC Strategic Opportunities, CVC Growth, CVC Credit and CVC Secondaries (Glendower).
In Asia, CVC has backed businesses such as Xi’an Yikang Pharmacy, Sajjan India, A Bathing Ape, SOHO Global Health, and others across Greater China, Japan, South Korea, India and Southeast Asia.
In terms of the secondary market, the close of Glendower’s fifth fund comes amid a slowing fundraising momentum globally. Secondary fundraising dropped to around $50 billion in 2022, after the highs of 2020 and 2021 at $97 billion and $52 billion, respectively, per a William Blair report.
Secondary volume, including both LP-led and GP-led deals, also fell to $105 billion in 2022 from $133 billion a year earlier. However, 2023 volume was expected to bounce back to $135 billion, as GPs were under pressure to return capital to their investors, the report showed.
Asia has attracted the interest of several global secondary fund managers. As reported by DealStreetAsia earlier today, French private equity major Ardian was mulling an Asia-focused secondary strategy to capture rising opportunities in the region. Global secondary investors active in this region include Blackstone and KKR, while other Asia-focused secondary investors include TPG NewQuest, TR Capital, among others.