PE stores buy side businesses like CVC does with Glendower Capital
Posted on 09/13/21
CVC Capital Partners has agreed to buy London-based Glendower Capital, a manager of secondary private equity funds. The combined manager will oversee around € 113 billion in assets. Glendower Capital was established in 2017 as an independent company out of the asset management arm of Deutsche Bank AG. Glendower Capital manages or advises approximately US $ 8 billion of aggregate capital commitments in several funds backed by leading institutional and private investors around the world.
Glendower’s management will continue to lead the business which will operate independently under the Glendower name. The transaction is subject to regulatory and other approvals and is expected to close in the fourth quarter of 2021.
CVC’s advisors in this transaction included Freshfields and Goldman Sachs. Glendower’s advisers included Debevoise & Plimpton LLP.
CVC oversees about $ 163 billion in committed capital, according to its website.
Deutsche Bank AG
Before the split, Deutsche Bank had around € 6 billion in private equity assets on its balance sheet. Charles Smith, Carlo Pirzio-Biroli, Chi Cheung and Deirdre Davies were at the German bank and sold the remaining 4.5 billion private equity assets which were finalized in 2005. Smith secured the first 130 direct investments sold. for 1.5 billion euros. Essentially, the four sold 600 assets in 150 transactions without intermediaries. In 2007, the group’s success led Deutsche Bank to create a secondary activity. DB Secondary Opportunities Fund I closed with US $ 775 million and against limited partners such as Deutsche Bank, Lehman Brothers, LGT Partners and Coller Capital. In 2012, DB Secondary Opportunities Fund II closed with US $ 614 million and a third fund closed with US $ 1.65 billion.