Cinven is seeking more time to close its next major buyout fund, people with knowledge of the matter said, amid a difficult fundraising environment for private equity firms.
(Bloomberg) — Cinven is seeking more time to close its next major buyout fund, people with knowledge of the matter said, amid a difficult fundraising environment for private equity firms.
The European private equity pioneer has extended the deadline for its eighth flagship fund from July 2023 to January 2024, the people said, asking not to be identified discussing confidential information.
The firm is telling investors it has met its €12 billion ($13 billion) target but wants to give more time for some parties to close their commitments, according to the people.
Cinven informed investors about the extension in recent weeks, the people said. It’s confident it will complete the fundraising well before the new deadline, though no final decisions have been made on the timing, the people said. A representative for Cinven declined to comment.
The move is a reminder of the effort managers have to make to rustle up cash in a world where investors have less to spare. Cinven is raising its flagship fund at a time when investors are becoming more selective about the managers they back and questioning the speed at which private equity firms are returning to market with new vehicles.
EQT AB is also seeking more time to close its next €20 billion flagship buyout fund, Bloomberg News reported last month. Recession fears and tightening financing markets are weighing on private equity dealmaking, with firms struggling to seal acquisitions.
Cinven closed its seventh flagship fund at €10 billion in 2019. The firm began life in the 1970s as a manager of pensions for coal miners.
It launched its maiden independent fund in 1996 and was one of the first UK-based private equity firms to target American pension investors and insurers for capital. Cinven has since raised more than €39 billion for investments, according to its website.
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