Not just Goldman Sachs and Morgan Stanley: all the banks helping CVC for Multiversity
Goldman Sachs, Morgan Stanley and others are preparing a 1 billion euro loan to CVC to support the reorganization of the investment in Multiversity. Here's what's happening
A group of banks, composed among others of Goldman Sachs and Morgan Stanley, are preparing a loan of almost 1 billion euros which will allow the British fund CVC Capital Partners to maintain control over Multiversity, the group that owns the Pegaso online universities, Mercatorum and San Raffaele.
THE CVC CONTINUATION FUND
According to what was revealed by Bloomberg , the financing – bridge loan , in jargon – will support CVC's plan to move Multiversity into a continuation fund : this is the name of those financial instruments used by the funds to manage companies in their investment portfolios, allowing them to transfer assets purchased through old funds into a new vehicle. This process – explains Bloomberg – “allows investors to hold assets for a longer period than the typical investment cycle, or to cash in their shares”.
As the BeBeez portal writes, the use of continuation funds is becoming a common practice for private equity operators towards those companies in which they have invested some time before but which they believe "may still have a way to go in terms of growth": for this reason, they have an interest in maintaining the participation, while also giving old investors the opportunity to withdraw.
THE BANKS INVOLVED: UNICREDIT, BNP, CREDIT AGRICOLE, DEUTSCHE BANK…
The underwriters of the loan to CVC, in addition to the aforementioned Goldman Sachs and Morgan Stanley, also include UniCredit, BNP Paribas, Credit Agricole, Deutsche Bank, Bank of America and CVC Capital Markets. According to Bloomberg sources, the increase in debt will be followed by an offering of high-yield bonds.
WHAT CVC THINKS ABOUT MULTIVERSITY
CVC's investment in Multiversity dates back to 2019, through the CVC Capital Partners VII fund; two years later the fund took control of the university group led by Fabio Vaccarono (in the photo). Now, CVC's plan is to transition the investment in Multiversity from CVC Capital Partners VII to a new continuation fund , which will be structured as a single-asset vehicle; CVC Capital Partners VIII will be an investor.
In a statement published on April 16, CVC declared that Multiversity had recorded an "impressive performance" thanks to its ability to tap into the "underserved and undervalued Italian university student market".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/debito-finanziamento-cvc-multiversity/ on Mon, 29 Apr 2024 13:03:14 +0000.