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CVC Capital Partners plc (NL:CVC)
:CVC
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CVC Capital Partners plc
(CVC)
Select Model
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Rating:72Outperform
Price Target:
€17.50
▲(12.54% Upside)
CVC Capital Partners plc's overall stock score is driven by strong earnings call performance and robust financial performance, particularly in revenue growth and cash flow management. However, technical indicators suggest potential bearish momentum, and high leverage poses a risk. The valuation is moderate, providing limited upside potential.
Positive Factors
Revenue Growth
Sustained revenue and EBITDA growth indicate strong operational performance and market demand, supporting long-term business expansion.
AUM Growth
Significant growth in assets under management reflects strong client interest and effective fundraising, enhancing future revenue potential.
Cash Flow Management
Robust cash flow generation supports financial flexibility and investment capacity, crucial for sustaining growth and managing debt.
Negative Factors
High Leverage
High leverage can strain financial resources and limit strategic options, posing risks to long-term financial stability and growth.
Declining Profit Margins
Declining profit margins suggest increased costs or inefficiencies, which could impact profitability and require operational improvements.
Challenging Macro Environment
Macroeconomic challenges can hinder investment exits and returns, impacting revenue and strategic growth plans over the medium term.
CVC Capital Partners plc (CVC) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
€16.59B
Dividend Yield2.87%
Average Volume (3M)706.27K
Price to Earnings (P/E)22.0
Beta (1Y)1.42
Revenue Growth20.37%
EPS Growth54.24%
CountryNL
Employees1,247
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.36
Shares Outstanding1,062,984,500
10 Day Avg. Volume739,047
30 Day Avg. Volume706,269
Financial Highlights & Ratios
PEG Ratio-2.47
Price to Book (P/B)22.93
Price to Sales (P/S)14.47
P/FCF Ratio33.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€19.99Price Target Upside28.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
CVC Capital Partners plc Business Overview & Revenue Model
Company DescriptionCVC Capital Partners plc is a private equity and venture capital firm specializing in middle market secondaries, infrastructure and credit, management buyouts, leveraged buyouts, growth equity, mature, recapitalizations, strip sales, and spinouts. The firm makes investments in medium to large sized companies. It seeks to invest in fintech, healthcare, industrial, telecommunications, information technology, electronics, biotechnology, medical, energy, chemistry, new materials, industrial automatisms, tech-enabled businesses such as human resources software, data centers, software as a-service, payments, industrial goods and services, other manufactured goods, financial services, manufacturing, services, distribution, media, retail, consumer goods, consumer services, sports, entertainment, buildings & construction, chemicals, gaming, oil & gas and public works. For Growth Partners, the firm seeks to invest in growth-oriented companies operating in the software and technology-enabled business services sectors. The firm also seeks to make infrastructure investments in Europe in the following sectors: transport, public or business utilities, provision of government services, communications infrastructure, energy production and provision, and businesses providing related regulated services. It prefers to invest in companies based in United Kingdom, Belgium, Bermuda, Czech Republic, Finland, Greece, Iceland, Netherland, Poland, Spain, Sweden, Korea, Malta, Middle East, North Africa, North America, United States, Latin America, Southeast Asia, Hong Kong, Philippines, Japan, Australia, New Zealand, Vietnam, Singapore, Malaysia, South Korea, Greater China, Taiwan, and Europe with a focus on France, Italy, Germany, and Switzerland. For Asia private equity strategy, it seeks to invest in companies with enterprise value between $250 million and $1.5 billion. For Strategic Opportunities, it seeks to invest in companies with enterprise value between 1 billion ($1,067.05 million) and more than 5 billion ($5,335.25 million), with a longer holding period of around six to 15 years. It seeks to invest in companies with enterprise value between $250 million and $5727.4 million. For Growth strategy, it's equity investments is in excess of $50 million. It seeks to make equity investment between $50 million and $250 million.. Asia private equity strategy is focused on control, co-control, structured minority and majority investments. For minority stake it takes equity investment between 15% to 20%. For credit strategies, the firm focuses to invest in senior secured loans, bond, corporate credit, private credit, direct lending and private credit. CVC Capital Partners plc was founded in 1981 and is based in London, United Kingdom with additional offices across the Australia, Europe, South America, and Asia. CVC Capital Partners plc operates as a subsidiary of CVC Advisers Company (Luxembourg) S.à r.l.
How the Company Makes MoneyCVC Capital Partners generates revenue primarily through management fees and carried interest from its private equity funds. The firm charges management fees, typically a percentage of the committed capital of the funds it manages, which provide a steady income stream. Additionally, CVC earns carried interest, which is a share of the profits generated by the funds upon successful exits, such as sales or public offerings of portfolio companies. The firm also benefits from strategic partnerships with various institutional investors and corporations, enhancing its investment capabilities and access to co-investment opportunities. Overall, CVC's earnings are driven by the performance of its investments, the growth of its portfolio companies, and successful capital raising efforts for new funds.
CVC Capital Partners plc Earnings Call Summary
Earnings Call Date:Sep 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance by CVC Capital Partners with significant growth in AUM, robust fundraising momentum, and record realizations and returns. Despite some challenges posed by macroeconomic headwinds and FX impacts, the overall outlook remains positive with continued expansion in infrastructure and credit segments.Q2-2025 Updates
Positive Updates
Increase in Fee-Paying AUM
Fee-Paying AUM increased from EUR 128 billion as of June '24 to EUR 140 billion, representing a significant growth in assets under management.
Strong Fundraising Momentum
CVC aggregated around EUR 60 billion of capital over the last 24 months, with EUR 29 billion of active fundraising underway.
Record Realizations and Returns
Last 12-month average realized returns were 3.3x gross multiple of money and 27% gross IRR.
Growth in Revenue and EBITDA
Revenues and EBITDA grew by 14% over the last 12 months, driven by strong operational performance.
Significant Dividend Payment
An interim dividend of EUR 250 million will be paid in October, bringing total distributions over the last 12 months to EUR 475 million.
Expansion in Infrastructure and Credit
CVC's Infrastructure funds are expected to be twice the size of funds raised 5 years ago. Credit Fee-Paying AUM nearly doubled to EUR 43 billion.
Negative Updates
Negative FX Impact on Valuation
Changes in FX rates impacted the valuation of U.S. dollar assets negatively when translating into euros.
Challenging Macro Environment
Continued macroeconomic headwinds and market volatility are affecting the realization and exit landscape.
Company Guidance
During the CVC Capital Partners plc 2025 Half Year Results Call, the company provided guidance highlighting several key metrics. Fee-Paying Assets Under Management (AUM) increased from EUR 128 billion in June 2024 to EUR 140 billion by the first half of 2025, driven by strong fundraising momentum and client interest in Europe. The company reported deployment and realizations both increased by over 20% year-on-year, with last 12-month average realized returns of 3.3x gross multiple of money and a 27% gross Internal Rate of Return (IRR). Financially, revenues and EBITDA grew by 14% over the past year, and a EUR 250 million interim dividend is scheduled for October 2025. The company also revealed plans for future product launches and fundraising activities, including significant progress in Credit, Secondaries, and Infrastructure, which now account for approximately 50% of Fee-Paying AUM. Additionally, management fees increased by 20% year-on-year, contributing to a 25% rise in management fee earnings. The call emphasized CVC's commitment to long-term growth and delivering top-class returns for stakeholders.CVC Capital Partners plc Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
65
Positive
Cash Flow
85
Very Positive
| Breakdown | Dec 2024 | Dec 2023 |
|---|---|---|
Income Statement | ||
| Total Revenue | 1.56B | 987.97M |
| Gross Profit | 1.15B | 528.77M |
| EBITDA | 483.67M | 650.10M |
| Net Income | 225.29M | 367.01M |
Balance Sheet | ||
| Total Assets | 5.27B | 3.79B |
| Cash, Cash Equivalents and Short-Term Investments | 618.29M | 629.37M |
| Total Debt | 1.82B | 1.45B |
| Total Liabilities | 3.46B | 2.55B |
| Stockholders Equity | 985.73M | 615.92M |
Cash Flow | ||
| Free Cash Flow | 667.95M | 342.60M |
| Operating Cash Flow | 689.13M | 346.27M |
| Investing Cash Flow | -248.12M | 126.56M |
| Financing Cash Flow | 62.60M | -491.22M |
CVC Capital Partners plc Technical Analysis
Neutral
15.55
Price Trends
15.94
Negative
16.24
Negative
17.54
Negative
Market Momentum
-0.15
Negative
52.41
Neutral
78.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:CVC, the sentiment is Neutral. The current price of 15.55 is above the 20-day moving average (MA) of 15.08, below the 50-day MA of 15.94, and below the 200-day MA of 17.54, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 52.41 is Neutral, neither overbought nor oversold. The STOCH value of 78.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:CVC.
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.