Glendower Capital, a specialist in secondary buyouts and a subsidiary of CVC Capital Partners, has successfully raised $5.8 billion for its latest fund.
The Glendower Capital Secondary Opportunities Fund V reached its hard cap, marking the first fund raised by Glendower since it was acquired by CVC in 2021.
Based in London, Glendower utilizes its capital to acquire existing portfolios of private equity fund holdings.
Secondary market deals have gained popularity as a means for buyout firms and their investors to reallocate investments and access cash as needed.
The acquisition of Glendower also provided CVC with a new strategy to attract investors and generate ongoing management fees.
The latest fund from Glendower surpassed its predecessor, raising more than double the amount, totaling $5.8 billion compared to $2.7 billion in 2019.
The fund garnered support from over 230 new and returning investors.
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Carlo Pirzio-Biroli, CEO of Glendower, highlighted the attractive opportunity in the secondary market, noting that it has consistently traded at over $100 billion for the past few years.
While the secondary market is commonly used to manage exposure to private equity in a volatile macroeconomic environment, it has also been bolstered by the introduction of continuation vehicles, enabling buyout firms to extend their ownership of businesses beyond the typical holding period.
Pirzio-Biroli further emphasized the shift in perception regarding the secondary market, stating that the stigma associated with selling in this market has diminished, with a greater focus on active portfolio management.
The successful fundraising efforts of CVC, including Glendower’s latest fund, have placed the firm in a strong position.
Bloomberg recently reported that CVC had raised €26 billion ($28.7 billion) for the world’s largest-ever buyout vehicle, defying a challenging fundraising environment.
These achievements may further support CVC’s considerations for an initial public offering.
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