CVC Capital Partners Earnings: Off to a Good Start

Narrow-moat CVC Capital Partners will be pleased with its maiden results as a listed company. It reported adjusted EBITDA of EUR 357 million, 9% ahead of the expectations of the company-compiled consensus. In contrast to its other European private market peers, CVC enjoyed a significant increase in realizations of investments in the first half of 2024, leading to a 106% increase in performance-related earnings (carried interest + investment income). Management fees increased in line with average fee-paying assets under management, as did operating expenses – leading to broadly stable management fee and EBITDA margins. We expect a softer second half with lower realizations and, consequently, lower performance fees. CVC's medium-term guidance remains unchanged, and we maintain our EUR 18 per share fair value estimate.