Honda F1 website

SEPTEMBER 21, 2006

CVC looking for more cash

CVC Capital Partners Ltd - the venture capital company that owns the Formula One group - is seeking $5.1bn in order to re-establish itself as the biggest leveraged buy-out firm in Europe. The company has been under pressure from rivals for that title in the course of recent months with both Cinven and Permira building up bigger investment funds. The company has now raised four European Equity Partner funds: the first in 1995 was for $840m; the second in 1996 for $3.3bn; the third in 1999 for $3.9bn and the fourth in 2005 for $7.2bn. The returns on investment have been impressive with one of the funds delivering around 80% profit for investors.

CVC will use the new cash alongside its existing buyout funds for investments of $250m of more.