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CVC Capital Partners plc
Annual
Report &
Accounts
2024
Portfolio Company: Hempel
Fund Investment: Strategic Opportunities III
Highlights of the Year
2024 – a Landmark Year for CVC 4
A scaled and diversified leader
inPrivate Markets 5
Strong performance in 2024 6
CEO Review
CEO Review 8
Operating summary 10
Our Approach
What makes CVC successful? 12
The CVC Network 13
Culture and reward 13
Investment performance 14
Client base 14
Market opportunities 15
Our Strategies
andPerformance
Seven complementary
investment strategies 17
PrivateEquity
Europe / Americas 18
Asia 20
Strategic Opportunities 22
Growth 24
Secondaries 26
Credit 28
Infrastructure 30
Financial Review
CFO Review 33
How our results are presented 34
Key financials 35
Statutory and pro forma review 36
Key metrics and ratios 37
Segment review 38
Gross investment performance
ofkey CVC funds 40
Fee-paying assets under
management evolution 41
Risk Overview
Risk strategy and governance 43
Risk management framework 45
Principal risks and uncertainties 47
Viability statement 52
Governance Report
Chair’s Letter 55
Compliance with the UK
Corporate Governance Code 56
Board of directors 57
Corporate Governance structure 59
Board roles and responsibilities 60
Board activities 61
Nomination Committee Report 63
Audit Committee Report 65
Risk Committee Report 72
Remuneration Report 73
Stakeholder engagement and
section 172 statement 78
CVC Foundation 79
Shareholder information 81
Board Responsibility Statement 85
Sustainability Report
Sustainability priorities 87
Sustainability Statement:
Generaldisclosures 94
Environmental information
E1 Climate change:
buildingclimate resilience 120
EU Taxonomy 132
Social information
S1 Own workforce:
attracting,developing
andretaining talent 139
S2 Workers in the value chain 148
Governance information
G1 Business conduct:
ensuringrobust governance
and accountability 152
Information security and
dataprivacy 156
Investing responsibly for
long-term growth 159
Assurance Report of the
Independent Auditor
(ofnon-financial indicators) 165
Financial Statements
Independent Auditor’s Report 169
Consolidated Statement of
Profitor Loss 179
Consolidated Statement of
ComprehensiveIncome 179
Consolidated Statement of
Financial Position 180
Consolidated Statement of
Changes in Equity 181
Consolidated Statement of
CashFlows 182
Notes to the Consolidated
Financial Statements 183
Company Financial Statements 242
Notes to the Company
FinancialStatements 245
Additional Information
ESEF Assurance Opinion 248
Statutory to pro
formareconciliation 249
Alternative performance
measures reconciliations 250
Adjusted pro forma
operatingsegments 256
Glossary 257
Financial calendar for 2025 260
Key contacts 260
Forward-looking
statementsdisclaimer 260
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
2
Contents
CVC Capital Partners plc Annual Report 2024
Highlights
of the Year
In this section:
2024 – a Landmark Year for CVC 4
A scaled and diversified leader in
Private Markets
5
Strong performance in 2024 6
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
3
CVC Capital Partners plc Annual Report 2024
“2024 was a landmark
year for CVC, in which
we successfully
completed our IPO,
delivered continued
growth and made
significant strategic
progress.”
Rob Lucas
Chief Executive Officer
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
4
2024 – a Landmark Year for CVC
CVC Capital Partners plc Annual Report 2024
c.€16bn
capital raised
across the Group
1
Successful launch of our first evergreen
Private Wealth
product
CVC-CRED
Acquisitions
CVC DIF and
CVCSecondary
Partners
acquisitions
IPO
listed on
Euronext
Amsterdam
inApril 2024
Activation of the largest PE Fund
globally
Fund IX
€26.8bn
Alongside Asia VI
$6.8bn
Strong activity levels
€25.6bn
in deployment
2
€13.1bn
in realisations
3
1. Capital raised: Total capital commitments made across CVC’s
seven strategies (including Infrastructure) from 1 January 2024
through 31 December 2024, including commitments accepted
to CVC’s private funds, separate accounts, and evergreen
products. Amounts shown may include GP commitments and,
in respect of private credit strategies, leverage.
2. Deployment: Includes signed but not yet closed investments
asat 31 December 2024, across Private Equity, Secondaries and
Infrastructure, and movement in Credit FPAUM by vehicle
(excluding FX and exits).
3. Realisations: Signed realisations as of 31 December 2024, across
Private Equity, Secondaries and Infrastructure (excludes Credit).
CVC has a long
historyofcreating
sustainablevalue.
We have spent over
40yearsbuilding out the
CVCNetwork.Our track
recordisunderpinned by
aperformance-based and
entrepreneurial culture
whichhas helped us deliver
consistent investment
performance across multiple
economic cycles, forthe
benefit of ourclients.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
5
A scaled and diversified leader in Private Markets
CVC Capital Partners plc Annual Report 2024
Note: All figures are as at 31 December 2024.
>40
years
Founded in 1981
€200bn
AUM
Deep and long-standing
client relationships
30 office
locations
Across six continents
Seven
complementary
strategies
– Private Equity
• Europe / Americas
• Asia
• Strategic Opportunities
• Growth
– Secondaries
– Credit
– Infrastructure
Portfolio Company: Fjord1
Fund Investment: CVC DIF Infrastructure VII
In addition to the statutory financial results, the Group presents pro forma financial information that
reflects the results of the Group as if the Pre-IPO Reorganisation and the acquisition of CVC DIF had
beencompleted on 1January 2023. The Group also presents adjusted measures that help to illustrate
theunderlying operating performance of the Group.
Statutory
Total Revenue
€1,566m
Statutory
EBITDA
€474m
Statutory
Profit After Tax
€308m
Adjusted Pro Forma
Total Revenue
1
€1,513m
Adjusted Pro Forma
EBITDA
1
€966m
Adjusted Pro Forma
Profit After Tax
1
€830m
á Year-on-year growth
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
6
Strong performance in 2024
CVC Capital Partners plc Annual Report 2024
36%á
31%á
20%á
1. Adjusted measures (including pro forma information) are alternative performance measures (APMs) and are unaudited. TheCompany
believes that these APMs, in addition to IFRS measures, help to provide a fuller understanding of the Group’s results. Refer to pages
249 to 255 for reconciliations to IFRS measures. Comparative adjusted pro forma information can be found on page 37.
Portfolio Company: Good Choice
Fund Investment: Asia IV
CEO
Review
In this section:
CEO Review 8
Operating summary 10
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
7
CVC Capital Partners plc Annual Report 2024
I am pleased to present our
firstAnnual Report, following
alandmark year for CVC.
Wehave completed our
IPO,activated CVC Europe /
Americas Fund IX, the largest
private equity fund ever raised,
and seen a significant recovery
in activity levels.
We continue to execute on our strategic plan with the
acquisition of our Infrastructure platform (CVC DIF),
and the full acquisition of CVC Secondary Partners.
These achievements are reflected in our results, with
ourtotal Assets under Management (AUM) reaching
€200bn and our EBITDA increasing 31% to€966m.
Executing on our strategic vision
Our successful listing on Euronext Amsterdam in April
2024 was a pivotal moment for CVC and marks a
new chapter in our growth. We are pleased to have
delivered a strong performance in our first year as
apublic company, underpinned by our continued
focus on driving consistent investment performance
for our clients, and growing and diversifying our
business. We have grown our Fee-paying Assets
under Management (FPAUM) by 50% from €98bn
inDecember 2023 to €147bn at the end of 2024 as
we continue to scale and deepen our Private Equity
business, and drive growth across our Credit,
Secondaries and Infrastructure strategies,
whichnowrepresent almost half of our FPAUM.
Over the course of the year, we have seen a strong
recovery in investment activity, including a 71% year-
on-year increase in deployment, and a 114% year-on-
year increase in realisations. Across our Private Equity
strategies, the CVC Network continued to originate a
large number of attractive investment opportunities,
and we made 23 new private equity investments across
multiple geographies and sectors. Our Credit strategy
achieved record levels of deployment and has more
than doubled FPAUM since 2020. Our Secondaries
strategy also had a record year for deployment
aswecontinue to see strong secular growth across
this asset class, and we successfully expanded into
Infrastructure with the acquisition of CVC DIF.
We are pleased by our continued fundraising
success, with c.€16bn of capital raised in 2024 across
a highly diversified client base. This fundraising
success is underpinned by our deep and
longstanding client relationships with most of the
world’s leading investors, our focus on delivering
consistent investment performance, the long-term
growth of private markets, and the ability of scaled
private markets managers to grow at above market
rates. In addition to our deep existing institutional
client base, we are accelerating growth in Private
Wealth and Insurance with the launch of our first
twoevergreen products: CVC-CRED and CVC-PE.
We raised c.€1.5bn in Private Wealth in 2024 (more
than double the level in 2023), and we are excited by
our ability to achieve significant future growth in this
channel. In addition, we have raised over €15bn of
capital from insurance clients over the past five years
and we see a significant opportunity for growth
aswe further increase our focus on this channel.
The strength of the CVC model
Our performance in 2024 highlights the long-term
strength of the CVC model, and our focus on delivering
consistent investment performance for our clients
across multiple economic and geopolitical cycles. Our
disciplined investment approach is underpinned by our
rigorous risk management and deep sector expertise.
Critically, the CVC Network provides deep local
market knowledge across more than 30 office
locations globally, enabling us to identify a wide
number of investment opportunities, and allowing
usto select the most compelling opportunities for
each of our seven investment strategies. Our
distinctive long-term incentivisation model ensures
our teams are fully aligned with our clients and our
investment professionals operate with a long-term
ownership mindset.
We are pleased with the continued resilience of our
investment portfolios, and the strong realised returns
we are delivering for our clients, with CVC’s Private
Equity realisations in 2024 generating a 4.0x Gross
Multiple of Money (MOIC) and a 30% Gross Internal
Rate of Return (IRR).
“2024 was a landmark year for
CVC, in which we successfully
completed our IPO, delivered
continued growth and made
significant strategic progress.
Our strong performance has
been driven by the unique
CVC Network, our deep
and longstanding client
relationships, and the quality
of the team we have built.
Whilst the economic and
geopolitical environment
remains uncertain, our
experience shows that these
conditions can provide some of
our most attractive investment
opportunities. Following our
recent fundraising success, we
have significant capital available
to invest prudently across our
seven strategies, and we are
excited about our opportunities
for future growth.”
Rob Lucas
Chief Executive Officer
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
8
CEO Review
CVC Capital Partners plc Annual Report 2024
Strategic priorities for growth
Private Wealth represents an exciting opportunity to
broaden our client base and diversify our sources of
capital. The launch of our evergreen vehicles, CVC-
CRED and CVC-PE, marks an important step in our
expansion into this segment. Early momentum has
been strong and we see further growth potential, as
we launch more products and increase the number
of our distribution partners.
We are focused on scaling our activities across
Credit, Secondaries, and Infrastructure, on the
backof the strong growth fundamentals of these
asset classes. We are pleased with the success of
ourlatestSecondaries fundraise, and we are
exploring anexpansion into other direct adjacencies.
In Credit, wecontinue to see strong structural growth
as private markets become an ever greater source
offinancing for corporates, and the strength and
depth of our strategy is illustrated by the success
ofour latest European Direct Lending fundraise.
Within Infrastructure, we see a rapidly growing
needfor infrastructure investment across Europe
andNorth America, and we believe the private
markets will become an increasingly critical source
offunding, given ever greater governmental
budgetary constraints.
As a firm, we have made significant progress
towards embedding AI-driven solutions to optimise
knowledge sharing, further improve investment
origination and selection, and enhance operational
productivity. In addition, we are focussed on rolling
out AI across our investment portfolio including
product R&D, software engineering and augmenting
customer service.
Finally, people are critical to the success of everything
we do at CVC, and we remain committed to
attracting, developing and retaining world-class
talent. In 2024, we selectively expanded our
investment teams, increasing our deployment
capabilities, and we continue to strengthen our
Business Operations capabilities including fundraising
and technology. Today, CVC has more than 1,250
people worldwide, focused on driving the future
success of CVC, and maintaining our entrepreneurial,
collaborative and high-performance culture.
Navigating a period of transition
intheglobal economy
Whilst 2024 saw signs of recovery in the global
economy, with interest rates and inflation receding
from previous highs, the macroeconomic and
geopolitical environment remains uncertain and we
remain prudent regarding near-term market activity
levels. That said, CVC has demonstrated an ability
todeliver strong investment returns consistently
overour 40-year history, and we remain confident
inthe ability of our teams to adapt to changing
markets and continue to create value for our
clientsand investors.
Looking ahead
2024 was a landmark year for CVC, marked by
strong progress in fundraising, deployment, and
realisations, and underpinned by our ongoing focus
on investment performance. As private markets
evolve, we will continue to benefit from strong
underlying growth as clients allocate ever more
capital to scaled multi-asset managers such as
CVC,and our long-term investment model enables
us to be patient and deliver consistent investment
performance across economic cycles. We expect
further growth in 2025 underpinned by our ongoing
fundraising, and the full year impact of funds
activated in 2024.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
9
CEO Review continued
CVC Capital Partners plc Annual Report 2024
CVC Capital Partners plc
listed on Euronext
Amsterdam April 2024
€6.1bn
€13.1bn
€0.6bn
€1.0bn
€0.4bn
€1.1bn
€5.1bn
€11.0bn
2023
2024
2024 was a landmark year for CVC,
with a 50% increase in FPAUM and a
strong recovery in investment activity.
Fundraising
FPAUM increased to €147.3bn as at 31December
2024, from €98.2bn as at 31December 2023, or +50%.
Following the activation of Europe / Americas
FundIX and Asia VI in H1, and the inclusion of
Infrastructure
1
, additional FPAUM growth in 2024
was mainly driven by fundraising in Credit
andSecondaries.
We continue to execute on our fundraising targets,
with €15.7bn of capital raised
2
in 2024.
Continued strong momentum in Credit
andSecondaries:
– EUDL IV secured in excess of €7.6bn of investable
capital as at 31December 2024 vs. €6.0bn target
(final close expected in 2025), and Capital
Solutions III reached its final close at €1.6bn vs.
€1.3bn target.
– Following launch in June, we raised $3.5bn
3
as at
31December 2024 for SOF VI in Secondaries,
progressing towards its $7.0bn target.
StratOps III held a final close in Q1-25 reaching total
fund size of €4.6bn (vs. €4.5bn target).
Infrastructure fundraising for DIF VIII & Value Add IV
launched in January 2025, with a combined target
size of €8.0bn.
Private Wealth:
– Subscriptions for CVC-CRED progressing well:
€0.7bn in aggregate value
4
as at 31December
2024, following the launch in Q2 2024.
– Launch of CVC-PE, our new Private Equity evergreen
product, in January 2025, ahead ofplan.
– Accelerating the preparation of further evergreen
products, together with increased investment in
our Private Wealth platform.
Deployment
Strong year-on-year recovery in deployment activity:
+71% vs. 2023.
Private Equity deployment reached €13.3bn in 2024
vs. €4.2bn in 2023 with 13 new investments for
Europe / Americas Fund IX, following its activation in
May, and 23 investments in total across Europe /
Americas, Asia and StratOps.
Attractive deployment opportunities for CVC
Secondary Partners drove an increase of 93% year-
on-year, with €2.4bn deployed
6
in 2024 vs. €1.2bn
in2023.
Deployment
7
across CVC Credit reached €8.0bn in
2024, up from €6.7bn in 2023 (+20%), highlighting
our strong origination and execution capabilities
across Performing and Private Credit strategies. CVC
Credit achieved record levels of deployment in 2024,
although refinancing activity resulted in a high level
of repayments slowing overall growth in FPAUM.
– Record year for CLO issuances across Europe and
the US with 25 CLOs issued
8
.
In Infrastructure, with DIF VII and Value Add III almost
fully committed, focus in 2024 was primarily on value
creation and exits ahead of fundraising for their
successor funds, which launched in January 2025.
Realisations
Whilst realisations across all strategies increased
by114% year-on-year, we remain prudent regarding
near-term market activity levels, and based on
current market conditions, we anticipate realisations
in 2025 being at, or slightly above, 2024 levels.
Private Equity realisations more than doubled
to€11.0bn in 2024 from €5.1bn in 2023 driven
byarecovery in corporate and sponsor M&A,
notwithstanding public market volatility.
We saw similar dynamics in Secondaries and
Infrastructure, with 2024 realisations across these
strategies up by more than 100% year-on-year.
Importantly, realised returns
10
remained strong:
4.0xGross MOIC and 30% Gross IRR in 2024 for
Private Equity.
Fund performance
Our portfolio performance continues to be resilient
across all strategies: EBITDA growth of c.10% across
Private Equity.
Value creation across the Private Equity
andInfrastructure portfolios of 12%, growing
ataconsistent pace throughout the year.
All material funds continue to perform on
oraboveplan.
Deployment
5
+71%
Realisations
9
+114%
•
Private Equity
•
Infrastructure
•
Secondaries
•
Credit
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
10
Operating summary
CVC Capital Partners plc Annual Report 2024
6. Secondaries deployment is net investment exposure which represents the initial funded equity purchase
price plus unfunded commitments reasonably expected to be called over the life of the transaction.
7. Credit deployment based on movement in FPAUM by vehicle (excl. FX and exits).
8. Includes new issuances, reissuances, resets and refinancings.
9. Signed realisations as at 31December 2024, across Private Equity, Secondaries and Infrastructure
(excludes Credit).
10. Weighted average by invested capital, for Private Equity (Europe / Americas, Asia, StratOps, Growth)
realised investments in the period.
€14.9bn
€25.6bn
€6.7bn
€8.0bn
€1.2bn
€2.4bn
€2.8bn
€1.9bn
€4.2bn
€13.3bn
2023
2024
Notes:
1. Acquisition of CVC DIF signed in September 2023 and completed on 1 July 2024.
2. Total capital commitments made across CVC’s seven strategies from 1January 2024 through
31December 2024, including commitments accepted to CVC’s private funds, separate accounts, and
evergreen products. Amounts shown may include GP commitments and, in respect of Private Credit
strategies, leverage.
3. Including overflow fund, co-invest and GP commitment.
4. Including 2 January 2025 subscriptions and corresponding leverage.
5. Includes signed but not yet closed investments as at 31December 2024.
Our
Approach
In this section:
What makes CVC successful? 12
The CVC Network 13
Culture and reward 13
Investment performance 14
Client base 14
Market opportunities 15
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
11
CVC Capital Partners plc Annual Report 2024
The CVC Network, our uniqueculture, investment performance and client base underpin our success.
The CVC Network
Culture and reward
The strength and scale of the
CVCNetwork, across seven
strategies, creates a wide
origination funnel.
Performance-based and
entrepreneurial culture across
theCVCNetworkaligns
incentivesand creates an
ownershipmindset.
Client base
Investment
performance
Our investment performance,
along with the scale and depth
ofour platform, fuels strong, long-
standing blue-chip relationships
and underpins our fundraising.
The depth of our investing
experienceenables us to
selectthebestopportunities,
achievingconsistently
strongreturns.
CVC sees sustainability as
animportant part of our
approach to value creation
and risk management as we
build better businesses and
create sustainable value for our
stakeholders. We believe this
contributes to the long-term
success of our business and
theinvestments we make.
For more information about our approach,
see our Sustainability Report on page 86.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
12
What makes CVC successful?
CVC Capital Partners plc Annual Report 2024
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
13
CVC Capital Partners plc Annual Report 2024
The CVC Network
Employees (FTEs) Long service Experienced Regional expertise
Including
520 Investment
professionals
117 Managing
Partners & Partners
Average tenure of
Managing Partners
Senior professionals
have led or co-led an
investment
1
Office locations
Our global platform of 30 office locations on six
continents is one of the most geographically
diverse and longest-established of any private
markets firm worldwide.
We believe our global resources across multiple
jurisdictions, languages, business environments
and investment strategies are fundamental to
sourcing investments and creating value.
Note: For informational purposes only. As at 31December 2024.
1. Investment leaders include CVC Europe / Americas, CVC Strategic Opportunities, CVC Growth and CVC Asia but not CVC Credit,
CVC Secondary Partners or CVC DIF.
Culture and reward
Our people are core to our success, and
ourapproach to attracting, developing
andretaining talent forms a key pillar
ofourstrategy.
Our disciplined investment approach,
acrosstheCVC Network, is underpinned by
adistinctiveincentivisation model, and a strong
entrepreneurial, performance-driven culture
aligned with shareholders and clients. This is
overlaid with an ownership mindset supported
by a broad employee shareholding.
Entrepreneurial culture with
anownershipmindset
Current shareholding
(%)
l
Employee
l
Public investor
70%
30%
Values underpinning our culture
Entrepreneurial
Balanced
Inclusive
Honest
Europe / Americas Gross MOIC (Funds I-VII)
2
Fund I
’96
Fund II
’98
Fund III
’01
Fund IV
’05
Fund V
’08
Fund VI
’14
Fund VII
’17
Europe / Americas Gross IRR (Funds I-VII)
2
Fund I
’96
Fund II
’98
Fund III
’01
Fund IV
’05
Fund V
’08
Fund VI
’14
Fund VII
’17
Consistent performance over 28 years and multiple economic and geopolitical cycles
MSCI Europe (rebased to 100)
1
350
300
250
200
150
100
1997-1998
Asian &
Russian
Financial
Crisis
2001-2002
Dotcom
Bubble &
9/11
2007-2009
Global
Financial
Crisis
2010-2013
Eurozone
Crisis
2021-2021
COVID-19
9%
8%
7%
6%
5%
4%
3%
2%
1%
10-year US treasury rate
2022-
2023
Russia /
Ukraine
War
2023-2024
Middle East Crisis
1996 2000 2004 2008 2012 2016 2020 2024
MSCI Europe 10-year US treasury rate
3.0x
2.9x
3.5x
2.4x
3.0x
2.7x
2.5x
l
Fully realised
l
Harvesting
31%
24%
58%
23%
26%
20%
24%
l
Fully realised
l
Harvesting
Sources: Capital IQ; Bloomberg for 31 January 1996 – 31 December 2024; Rebased to 100 as at 31 January 1996.
1. MSCI Europe data has been included to demonstrate market volatility and is not meant as a comparison versus CVC Europe / Americas Fund
returns. The MSCI Europe Index is part of the Modern Index Strategy and represents the performance of Large and Mid-cap equities across
15developed countries in Europe. The Index has a number of sub-Indexes which cover various sub-regions, market segments/sizes, sectors.
2. As at 31December 2024. Based on LCY returns (USD for Funds I-III, EUR for Funds IV-VII). Past performance is not necessarily indicative of
future returns.
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CVC Capital Partners plc Annual Report 2024
Investment performance
Significant experience in successfully navigating
macroeconomic and geopolitical uncertainty.
Our entrepreneurial and performance-driven
culture, with the power of the CVC Network,
hasenabled us to continue achieving strong
andconsistent investment performance
acrossmultiple economic cycles.
Highest-quality client base
Our many deep and long-standing client
relationships allow us to consistently scale
ourinvestment strategies, increasing the
sizeofsubsequent funds through successive
fundraising cycles. In addition, clients are
consolidating their relationships with Private
Markets managers, and we will continue to
beabeneficiary of thistrend.
Portfolio Company:
Normec
Fund Investment:
Secondaries
We serve many of theworld’stopclients
Clients across all strategies
1,100+
Average relationship with CVC
17 years
Largest US pension funds
14 of the Top 15 are our clients
Largest sovereign wealth funds
12 of the Top 15 are our clients
CVC is well-positioned
to continue growing
Our investment performance reflects
thestrength of our strategy and provides
asolidfoundation for continued growth.
Our industry will
continue to grow,
underpinned
by long-term
market trends.
We have exposure to
the fastest-growing
areas within Private
Markets, across
regions, strategies
and channels, with
significant scope to
take share within
those areas.
Clients are
consolidating their
relationships with
Private Markets
managers, and
we will continue
to be a beneficiary
of this trend.
A range of
attractive
long-term growth
opportunities,
both organic and
inorganic, exist –
we will continue
to evaluate
very selectively.
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Market opportunities
CVC Capital Partners plc Annual Report 2024
Our Strategies
and Performance
In this section:
Seven complementary
investmentstrategies
17
Private Equity
Europe / Americas 18
Asia 20
Strategic Opportunities 22
Growth 24
Secondaries 26
Credit 28
Infrastructure 30
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CVC Capital Partners plc Annual Report 2024
One integrated platform managing €200bn of AUM
1
.
€200bn AUM
1
Private Equity €119bn AUM
1
Europe / Americas Asia Strategic
Opportunities
Growth Secondaries Credit Infrastructure
3
Strategy
Global leader – able to
deploy at scale, and
consistently performing
across multiple cycles.
Strategy
Regionalstrategy
supported by strong
long-term market trends.
Strategy
Complementary
lower-risk, longer-hold
strategy, with flexible
investment approach.
Strategy
Mid-market growth equity
and growth buyout.
Strategy
Providing tailored liquidity
solutions for third-party
GPs and LPs.
Strategy
Leading global provider of
corporate credit solutions.
Strategy
Investing specifically in
core, core+ and value-
add infrastructure.
Launch year
1996
AUM
1
€86bn
Investment
professionals
182
2
Launch year
1999
AUM
1
€14bn
Investment
professionals
78
Launch year
2014
AUM
1
€15bn
Investment
professionals
17
Launch year
2014
AUM
1
€3bn
Investment
professionals
30
Launch year
2006
AUM
1
€18bn
Investment
professionals
43
Launch year
2006
AUM
1
€45bn
Investment
professionals
76
Launch year
2005
AUM
1
€19bn
Investment
professionals
124
Client and Product Solutions
Business Operations
Note: for information purposes only. As at 31December 2024. Totals may not sum due to rounding.
1. Including parallel vehicles to the main funds.
2. Europe / Americas total includes Technology investment professionals, which are also included in Growth.
3. Acquisition of CVC DIF closed on 1 July 2024.
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Seven complementary investment strategies
CVC Capital Partners plc Annual Report 2024
CVC’s Europe / Americas private equity strategy is
focused on control-oriented investments and high-
quality, fundamentally sound, cash-generative and
growing businesses. Typically, investments have:
– defendable and leading market positions;
– significant and predictable cash flows;
– diverse products and services that customers
require in good and bad times;
– competitive leadership in products, innovations,
know-how and cost structures;
– a broad, stable and diverse customer base; and
– best-in-class management.
Consistent performance for over 28 years across multiple cycles and irrespective of fund size
Fund Vintage Fund Size (bn) Gross MOIC (x)
1
Gross IRR (%)
1
Fund I 1996 $0.6 3.0x 31%
Fund II 1998 $2.5 2.9x 24%
Fund III 2001 $3.7 3.5x 58%
Fund IV 2005 €6.0 2.4x 23%
Fund V 2008 €10.7 3.0x 26%
Fund VI 2014 €10.9 2.7x 20%
Fund VII 2017 €16.4 2.5x 24%
Fund VIII 2020 €22.3 1.3x 11%
Fund IX 2023 €26.8 1.0x 22%
Realised Europe / Americas investments since inception
4
3.0x 28%
The Europe / Americas funds have invested through
multiple economic, industry and market cycles. The
long-term nature of these investments, the ability to
react quickly to adverse market conditions, and the
experience gained from successfully navigating past
macroeconomic crises, have allowed to deliver
consistent performance over the last 28 years.
Performance in 2024
In May 2024, we activated Europe / Americas Fund
IX, the largest private equity fund globally, marking
the start of a new investment cycle for our Europe /
Americas strategy, with a clear uptick in activity
levels during the year. Some of the key investments
announced in 2024 include the public offers on
Hargreaves Lansdown inthe UK, Resurs in the
Nordics, Comarch Group in Poland and
CompuGroup Medical in Germany, and the
acquisitions of Epicor in the US and Odevo in
Sweden. A key area of outperformance in 2024 has
been our ability to drive continued realisations for our
funds. Our portfolio continues to demonstrate
resilience, contributing to strong performance
throughout the year.
Portfolio characteristics
– Investment size: €200m-€1.5bn
– Target portfolio: 35-40 investments
– Target hold period: 5-6 years
– Target returns: 20-30% gross IRR / 2-3x gross MOIC
Europe / Americas
Launch year: 1996
Scale
€86bn
254
AUM Investments since
inception
2
Team
16
182
Offices in
15countries
Investment
professionals
3
Performance
3.0x
28%
Gross MOIC
4
Gross IRR
4
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Private Equity – Europe / Americas
CVC Capital Partners plc Annual Report 2024
Notes:
1. As at 31 December 2024, based on LCY returns (USD for Funds
I-III, EUR for Funds IV-IX).
2. Includes signed but not yet closed investments as at 31
December 2024.
3. Europe / Americas total includes Technology investment
professionals, who are also included in Growth.
4. Across realised investments in Funds I-VII.
• • • •
Mature / realised Active
Ontic
Ontic is the leading licensing partner to aerospace and defence
originalequipment manufacturers (OEMs) forcomplex, flight-
criticalparts, playing a vital role inensuring the reliability and
availability of aircraft fleets across the defence, civil, business
andgeneral aviation markets.
Backing a differentiated business model
Initially investing in Ontic in 2019, our value-creation plan focused
onaccelerating the growth of its distinct licensing business model by
increasing investment in new licences, people, and data and analytics
capabilities. This resulted in Ontic almost tripling earnings in five years.
In2024, we led a recapitalisation of Ontic, joined by new minority equity
partners. Strong global demand has now led to a record order book and
healthy pipeline of new and larger licensing opportunities. There is also
potential for growth through M&A.
Flight-critical systems,
products and parts
Global customers
>8,000
across a wide range of technologies
>1,500
Key information Value creation focus area
Country: United Kingdom
Sector: Manufacturing
Strategy: Europe / Americas
Fund: Fund VIII
www.ontic.com
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Private Equity – Europe / Americas continued
CVC Capital Partners plc Annual Report 2024
“Working with CVC
to establish Ontic as
an independent entity
has allowed us to start
realising its potential and
achieve transformative
growth over the last five
years. The future is
equally exciting.”
Gareth Hall
CEO, Ontic
CVC Asia is one of the most well-established private
equity managers in the region, having made 89
investments since inception. CVC took full ownership
of the platform in 2008, and has since continuously
strengthened the investment team and local
sourcing network, as evidenced by the strength of
the platform’s track record since Asia III (2008
vintage). The platform provides CVC with access to
the world’s fastest-growing region, which accounts
for over 50% of the world’s population. By 2030, Asia
is projected to add approximately two billion new
members to the middle class and contribute more
than 55% of global GDP.
CVC Asia invests in businesses operating in domestic
demand-driven industries in both mature and
developing countries that are:
– in core sectors that benefit from the local rising
middle class, growing consumption and other
demographic and long-term trends in Asia; and
– established businesses with superior market
positions, a good track record and solid
reputations.
Performance in 2024
The activation of Asia VI in May 2024 marked an
important milestone for CVC. It underscored our
commitment to the region, the Group’s strategic
focus and the region’s dynamic market environment.
We executed key investments during 2024, including
Sogo Medical Group (Japan), Siloam Hospitals
(Indonesia), Aavas Financiers (India), and
PharmaResearch (Korea). We also achieved a
number of successful exits during the period,
including the full exits of Asia Commercial Bank
(Vietnam) and of the Chinese toll roads of RKE.
Strong local office network: nine offices with
leading South-East Asia presence
Well-defined and consistent investment strategy
Focus on high-quality assets in growing consumer
sectors, business services and TMT.
– Proactive owner: 100% control and partnership.
1,2
– Differentiated sourcing: 76% of investments
sourced bilaterally.
1
Portfolio characteristics
– Investment size: $100m-$500m
– Target portfolio: 20-30 investments
– Target returns: 20-30% gross IRR / 2-3x gross
MOIC
Notes:
1. Based on capital invested / committed across Asia III-V. As at 31
December 2024.
2. ‘Control’ includes investments where CVC holds >50%
stake.‘Partnership’ includes investments made alongside a partner,
where CVC holds <50% stake.
3. Based on Asia III-VI, as at 31 December 2024. Asia I and Asia II
have not been included as those funds predate CVC Asia being
fully controlled by CVC.
4. Fund size, including GP commitment.
5. Includes signed but not yet closed investments as at 31 December
2024.
6. Across realised investments in Asia III-V.
Asia
Launch year: 1999
Scale
€14bn
$6.8bn
AUM Asia VI (+52%
vs. Asia V)
4
89
Investments since
inception
5
Team
9
78
Offices Investment
professionals
Performance
2.2x
20%
Gross MOIC
6
Gross IRR
6
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Private Equity – Asia
CVC Capital Partners plc Annual Report 2024
Strong investment performance track record
Fund Vintage Fund size (bn) Gross MOIC (x)
3
Gross IRR (%)
3
Asia III 2008 $4.1bn 2.0x 19%
Asia IV 2014 $3.5bn 2.2x 19%
Asia V 2020 $4.5bn 1.6x 18%
Asia VI 2024 $6.8bn 1.1x 19%
Realised Asia investments since inception
6
2.2x 20%
• • • •
Mature / realised Active
Good Choice
Korean online accommodation booking service, GoodChoice,
hastripled customer numbers through enhancing its mobile
platform and sales network.
Focus on key functions
Since CVC acquired an 80% stake in Good Choice, the business
hasinvested in improving salesforce productivity, reinforcing its IT
infrastructure and leveraging data-driven analysis to identify new
growthand revenue opportunities.
It is now one of Korea’s most recognisable travel brands, attracting
increasing numbers of visitors to its platform and strengthening its
directrelationships with not only domestic, but also overseas
accommodation operators.
Most used
travelapp
inKorea
Installed apps
12 million
Key information Value creation focus area
Country: Korea
Sector: Consumer/retail
Strategy: Asia
Fund: Asia IV
www.gccompany.co.kr
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Private Equity – Asia continued
CVC Capital Partners plc Annual Report 2024
“Iʼm really proud of our
growth during CVCʼs
ownership. Today, one
out of four people in
Korea have our app
installed on their
mobile phones.”
Myunghoon Chung
CEO, Good Choice
CVC established its Strategic Opportunities strategy
in response to a client need for a longer-term,
lower-risk form of compounding private equity, with
the funds investing in more mature businesses that
may not suit a traditional private equity mandate.
The strategy focuses on corporate private equity
investments with a lower risk profile, mainly in Europe
and North America, while also seeking opportunities
to partner with founding families or foundations
looking for a long-term partner.
As such, CVC Strategic Opportunities funds have a
flexible approach and are able to invest in control,
co-control or minority influence opportunities in
businesses that:
– are high-quality, cash-generative and stable,
withsafe capital structures;
– operate in low-volatility sectors and environments;
– provide essential goods or services to non-cyclical
sectors; and
– offer longer-term opportunities for strategic
development.
Performance in 2024
In 2024, we successfully advanced our strategic
objectives, highlighted by the successful realisation
of our investment in GEMS. Over the year, we also
made a significant investment in Hempel, and
focused on generating strong investment returns
across our portfolio companies. Despite headwinds in
the broader market, fundraising efforts for Strategic
Opportunities III progressed well, underscoring strong
client confidence in ourapproach. In the first quarter
of 2025, we held the final closeofStrategic
Opportunities Fund III at €4.6bn (vs.€4.5bn target).
Geographic focus
Portfolio characteristics
– Investment size:
€250m – €750m
2
– Target portfolio:
c.10 investments per fund
– Target hold period:
6 – 10 years
– Target return:
13-15% gross IRR, 5%+ annualised yield and
2.5-3.0x gross MOIC
Origination focus – Targeting opportunities not
suitable for ‘traditional’ private equity
– Partnerships
Families, foundations and corporates, patient
capital, governance / operational expertise,
extensive toolkit
– Asset-backed
Less cyclical services, value-added infrastructure
and asset-backed financial services
– Cash-compounding businesses
Cash generative, market leaders, typically traded
growth for stability
Strategic Opportunities
Launch year: 2014
Scale
€15bn
18
AUM Investments since
inception
Team
4
17
Offices Investment
professionals
Performance
1.9x
15%
Gross MOIC
3
Gross IRR
3
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Private Equity - Strategic Opportunities
CVC Capital Partners plc Annual Report 2024
Strong investment performance track record
Fund Vintage Fund size (bn) Gross MOIC (x)
1
Gross IRR (%)
1
StratOps I 2016 €3.9 2.3x 14%
StratOps II 2019 €4.6 1.6x 17%
StratOps III 2024 €4.6 1.1x 17%
Notes:
1. Reflects EUR returns, as at 31 December 2024.
2. Excluding co-invest.
3. Across StratOps I, II and III.
• •
Active
GEMS Education
During the partnership with CVC, GEMS Education (“GEMS”), the
world’s largest provider of private education for children from
kindergarten to age 12, with c.140k students, committed substantial
capital to expand capacity and continued to deliver high-quality
education, improving NPS scores and retention.
Growth without compromise
Since its creation in 1968, GEMS has been a pioneer of education in the
UAE, where it plays a pivotal role in the region’s social infrastructure,
particularly in Dubai. The group also has schools in Qatar, Saudi Arabia,
Egypt and the UK.
CVC first invested in 2019, and since then has worked closely with the
business to increase the number and size of its schools (adding >15k seats).
While growing, GEMS continued to offer its full range of support services,
including school buses, uniforms, lunches and after-school activities, and
maintained its commitment to academic excellence.
Private school operator in
the UAE
Students
#1 140,000
Key information Value creation focus area
Region: Middle East
Sector: Education
Strategy: Strategic Opportunities
Fund: StratOps Fund I and Fund II
www.gemseducation.com
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Private Equity - Strategic Opportunities continued
CVC Capital Partners plc Annual Report 2024
“CVCʼs investment left
GEMS in a much stronger
position, and a better
business.”
Dino Varkey
CEO, GEMS Education
CVC Growth funds make control-oriented
investments in mid-market, growth-oriented
companies in Europe and North America. The funds
follow a thematic sourcing model, identifying key
trends and the sub-sectors best positioned to benefit
from them, and investing in businesses that have
strong inherent growth.
Performance in 2024
Despite a complex and evolving market
environment, we remained focused on supporting
our portfolio companies, helping them adapt and
thrive. Performance remained solid, underscoring
thestrength of our investments and disciplined
approach.
Geographic focus
Portfolio characteristics
– Market segment
Mid-market fund, fully integrated into CVC
Network
– Portfolio construction
c.10-15 high-conviction investments
– Investment phase
Growth+
– Co-investment vehicle
Enhanced economics and concentration
management
Growth
Launch year: 2014
Scale
€3bn
18
AUM Investments since
inception
Team
3
30
Offices Investment
professionals
Performance
2.0x
21%
Gross MOIC
2
Gross IRR
2
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Private Equity – Growth
CVC Capital Partners plc Annual Report 2024
Strong investment performance track record
Fund Vintage Fund size (bn) Gross MOIC (x)
1
Gross IRR (%)
1
Growth I 2015 $1.0 2.3x 22%
Growth II 2019 $1.6 1.7x 21%
Notes:
1. Reflects USD returns, as at 31 December 2024.
2. Across Growth I and II.
• •
Active
EcoVadis
With sustainability being a core focus for CVC, investing in EcoVadis,
the world leader in business sustainability ratings, is delivering benefits
to both organisations.
Shared vision, mutual advantages
Working with some of the world’s biggest multinational businesses,
EcoVadis provides standardised ESG and CSR ratings for over
150,000companies and their supply chains, helping reduce risk
andimprove sustainability.
Having first invested in EcoVadis in 2020, CVC is supporting the
organisation in further developing automation and expanding into new
markets. The relationship reflects a shared view of the importance of
sustainability to business success – and the insights gained through the
collaboration are helping CVC integrate sustainability into the value
creation plan for other portfolio companies.
Countries covered Companies screened
185+ 2.8m+
Key information Value creation focus area
Country: France
Sector: Technology
Strategy: Growth
Fund: Growth Partners II
www.ecovadis.com
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Private Equity – Growth continued
CVC Capital Partners plc Annual Report 2024
“Partnering with CVC
was a transformative step
in EcoVadis’ mission to
drive global sustainability.
Together, we are
creating a future where
responsible business
practices became not
just a priority but a
powerful driver of
growth and innovation.”
Pierre-François Thaler
andFrédéric Trinel
Co-CEOs of EcoVadis
CVC Secondary Partners manages and advises five
active secondary flagship funds, investing primarily
in Europe and North America with a mid-market
focus. The secondaries market comprises:
– Limited-Partner-led (“LP-led”) transactions, which
are sales to secondary buyers of fund interests,
usually at a discount to net asset value, based on
liquidity, regulatory and strategic considerations.
Clients pursue these transactions as part of their
portfolio management to free up cash to re-invest
in new funds or to divest non-core assets; and
– General Partner-led (“GP-led”) transactions, which
are bespoke liquidity solutions for managers as
analternative to listing or selling a company or
liquidating a fund.
The secondaries market offers an attractive and
differentiated investment opportunity as lower risk,
mature investments are repriced at a discount to net
asset value. The overall secondaries market has
grown by approximately 16 times since 2006 and
approximately 20% annually since 2016. This is due
to strong growth in the primary private equity
market, more active portfolio management and
strategy changes from clients creating a higher
propensity totrade, and significant growth in the
useof continuation funds.
Performance in 2024
During 2024, CVC completed the final step in the
acquisition of Glendower Capital, rebranded to CVC
Secondary Partners, and launched Secondaries
Opportunities Fund VI (SOF VI).
The CVC platform was successfully leveraged by
theCVC Secondary Partners team for investment
sourcing, underwriting and fundraising, maintaining
an active flow of investment opportunities across
GP-led and LP-led transactions.
Bottom-up asset underwriting
– Bottom-up underwriting of high conviction assets
managed by quality managers.
– Access to CVC underwriting knowledge via one-
way information valve.
Buy margin of safety
– Purchased c.1,600 fund interests and over 90
GP-led deals at average 20% discount to FMV
over 18years.
– Focus on capital preservation: low overall loss ratio
of c.2%.
Focus on short duration deals
– Focus on short duration, mature funds (historically
c.9 years old), no primary staples.
– Selectively transacted c.1% of annual deal volume
since inception.
Secondaries
Launch year: 2006
Scale
€18bn
>185
AUM Investments since
inception
Team
2
43
Offices Investment
professionals
Performance
1.6x
22%
Gross MOIC
2
Gross IRR
2
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26
Secondaries
CVC Capital Partners plc Annual Report 2024
Significant programme scale-up, coupled with strong investment performance across funds
Fund Vintage
Fund size (bn)
Gross MOIC (x) Gross IRR (%)
SOF / SOF D 2006 / 2010 $0.7 2.2x 30%
SOF II 2011 $0.6 1.8x 19%
SOF III 2014 $1.7 1.5x 13%
SOF IV 2018 $2.7
1
1.7x 19%
SOF V 2021 $5.8
1
1.5x 31%
SOF VI 2024
$7bn
(target)
1.3x >100%
Notes:
1. Includes GP commitment and overflow fund.
2. Across all funds since inception.
• • • •
Mature / realised Active
Normec
CVC Secondary Partners was a lead underwriter to Astorg in its acquisition
of Normec, a leading testing, inspection, certification and compliance
platform in Europe. CVC gained access before the deal formallywent to
market, based on its in-depth knowledge of the industry.
Supporting international expansion
Providing services in four markets: food safety, sustainability, life safety
and healthcare. Normec supports more than 20,000 customers with
mission-critical services, often enforced by regulatory requirements.
Itholds a leading position in its main end-markets.
Since the initial investment in 2020, Normec has more than quadrupled
its size. Led by an experienced management team with a track record in
value creation, the strong performance is due to solid organic growth
andto more than 40 successful acquisitions, which have enabled further
international expansion over the company’s four markets.
Employees Normec sites in Europe
5,000+ 130
Key information Value creation focus area
Region: Europe
Sector: Business services
Strategy: Secondaries
www.normecgroup.com
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Secondaries continued
CVC Capital Partners plc Annual Report 2024
“This transaction will
allow us to reinforce
Normecʼs pan-European
leadership and support
our international
expansion.”
Joep Bruins
Group Chief Executive Officer,
Normec
39.5
45.2
28.6
30.1
10.9
15.1
2023
2024
CVC Credit invests in companies across the sub-
investment grade corporate credit markets in Europe
and North America, with a 20-year track-record of
sourcing, underwriting and managing risk. It provides
clients with a broad range of opportunities through
strategies in both Performing Credit and Private Credit.
Both strategies operate in large and growing underlying
markets that benefit from structural tailwinds.
– The Performing Credit strategy targets income
opportunities in senior secured loans and bonds,
sourced in both the primary and secondary
markets, issued to large high-quality corporates
with liquid capital structures.
– The Private Credit business operates two strategies:
European Direct Lending and Capital Solutions,
focusing on investing in primary originated
financing solutions for corporates predominantly
owned by financial sponsors.
The CVC Network provides the CVC Credit platform
with a differentiated competitive advantage through
deep local insights and access to long-standing
relationships with financial sponsors, corporates,
banks and advisers.
CVC Credit AUM evolution (€bn)
•
Performing Credit
•
Private Credit
Performance in 2024
We experienced continued strong momentum in
fundraising, with European Direct Lending Fund IV
(EUDL IV) securing over €7.6bn of investable capital
as of 31December 2024, surpassing its €6bn target.
Capital Solutions III reached its final close at €1.6bn
inOctober 2024, exceeding its €1.25bn target. In
addition, we continue to see strong client demand
for our global CLO products, underpinning the
Performing Credit platform in the years ahead.
Deployment across CVC Credit was strong,
highlighting our origination and execution
capabilities across the Performing and Private Credit
strategies, and we achieved a record level of
deployment of €8bn in 2024.
Performing Credit
€30bn AUM
Strategy
Investment
Type Liquidity AUM
Global CLOs CLO Equity Locked-up €28bn
Performing credit
vehicles (SMAs
and funds)
Senior secured
broadly
syndicated
loans
Monthly &
quarterly
€2bn
Highly diversified: 150-350 issuers
Private Credit
€15bn AUM
Strategy
Investment
Type Liquidity AUM
European
DirectLending
(EUDL)
Directly
originated
senior secured
loans
Locked-up €12bn
Capital
Solutions
Privately
negotiated
junior capital
Locked-up €3bn
Diversified: 25-35+ issuers
Credit
Launch year: 2006
Scale
€45bn
>350
AUM Investments within
Private Credit
>675
Investments within
Performing Credit
Team
6
76
Offices Investment
professionals
Performance
9%
13%
Gross IRR | EUDL II Gross IRR | GSS II
(Capital Solutions)
12–15%
Net target return
Performing Credit /
CLO Equity
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Credit
CVC Capital Partners plc Annual Report 2024
IRCA Group
CVC Credit supported Advent International’s acquisition of IRCA,
helping finance an attractive value-creation plan during a period of
market volatility, enabling IRCA to strengthen its leadership position.
Backing a leader in speciality ingredients
With headquarters in Italy, IRCA is a global leader in high-quality food
ingredients, serving manufacturers and artisanal producers of pastries,
cakes, confectionery and gelato in over 100 countries. IRCA has over
1,000 large, international clients and 300 distributors.
CVC Credit first invested in the business in 2022 and, leveraging the sector
knowledge of CVC’s Private Equity team, was able to support Advent and
IRCA’s attractive value-creation plan, which has enabled organic and
inorganic growth in a complex financing environment. As market conditions
improved in 2024, CVC’s Capital Markets and Performing Credit teams
were well-positioned to capitalise on our institutional relationships,
tohelpIRCA refinance its capital structure in the bond market.
Countries Large international clients
100
1,000
Key information
Region: Europe and US
Sector: Consumer
Strategy: Private Credit, Performing Credit, CapitalMarkets
www.ircagroup.com
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29
Credit continued
CVC Capital Partners plc Annual Report 2024
CVC DIF, CVC’s Infrastructure business, has built a
leading position in mid-market infrastructure
investments, primarily in Europe, North America and
Australia. It has two fund strategies:
– CVC DIF Infrastructure funds invest in companies
and projects that build, own and operate core
andcore+ opportunities across infrastructure,
concessions, renewable energy and utilities, with
astrong heritage in public-private partnerships.
Typically these offer long-term contract cover,
offering downside protection and yield, combined
with the opportunity for creating additional value.
– CVC DIF Value Add funds (“VA”) (formerly CIF funds)
invest in companies with strong competitive
positions, often combined with attractive ‘buy and
build’ value creation opportunities, offering
significant growth potential mostly indigital, energy
transition, sustainable transport and health care.
Private infrastructure benefits from strong
underlyinggrowth, accelerated by decarbonisation,
digitalisation and an urbanising population.
Thiscreates a growing need for upgrading existing,
as well as developing new, infrastructure. Private
infrastructure capital has become the main source
offunding, and is expected to continue growing at
an accelerated rate for the foreseeable future.
Performance in 2024
In July 2024 we completed the acquisition of DIF
Capital Partners, rebranded to CVC DIF.
Fundraising efforts remained a key priority at the
beginning of the year, with the successful close
ofDIF VII and VA III (formerly CIF III) at €6.0bn
(above €5.5bn target).
From a deployment perspective, 2024 was
animportant year for our Infrastructure team,
characterised by a highly selective approach, as we
focused on completing the final investments from
DIF VII and VA III ahead of launching the successor
funds in 2025. Notable investments included TDF
Fibre in France (a fibre concession business), Fjord1
inNorway (a ferry concessions business) and HiSERV
in the Netherlands/Germany (an airport ground
support and equipment leasing business), reinforcing
our commitment to resilient infrastructure assets
with long-term value potential. Additionally, we
executed our first infrastructure investment in Asia,
ECO inSingapore (a hazardous waste management
business) illustrating the strength of the CVC
Network and our ability to take advantage of
globalopportunities.
Realisations remained a key area of focus, with
strong returns delivered to clients through the sale
offive investments from the two CVC DIF strategies,
with total proceeds of c.€1.1bn.
Infrastructure
Founded: 2005
Scale
€19bn
€6.0bn
AUM DIF VII/VA III (+49% vs.
DIF VI/VA II)
>220
Investments since
inception
Team
12
124
Offices Investment
professionals
Performance
1.9x
16%
Gross MOIC
1
Gross IRR
1
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Infrastructure
CVC Capital Partners plc Annual Report 2024
Notes:
1. Across realised investments. Includes all vintages from 2008 onwards, based on fund currency (EUR).
A leading, long-term mid-market infrastructure track record
Fund Vintage Fund size (bn) Gross MOIC (x) Gross IRR (%)
DIF II 2008 €0.6bn 2.0x 16%
DIF III 2012 €0.8bn 1.9x 17%
DIF IV 2015 €1.2bn 1.7x 11%
DIF V /
VAI
2017 €2.4bn
1.7x
1.6x
11%
12%
DIF VI /
VAII
2020 /
2019
€4.0bn
1.5x
1.6x
17%
19%
DIF VII /
VAIII
2022 €6.0bn
1.1x
1.3x
15%
24%
€1.9
€3.0
€4.4
€0.5
€1.0
€1.6
• • • • •
Mature / realised Active
Fjord1
Norway’s largest ferry operator, Fjord1, is leading the way in
decarbonising the Norwegian ferry sector, focusing on increasing
theelectrification of its fleet while increasing market share.
Clean energy, clear results
In a country with 240,000 islands, ferries are part of day-to-day travel
forNorwegians. As the leading provider, Fjord1 is reinforcing its position
byinvesting in electric vessels and developing innovative solutions such
asautonomous ferries, to enhance both its services and its reputation.
This strategy has accelerated since CVC DIF invested in the business,
along with EDF Invest, in 2023. Fjord1 is winning new car-ferry contracts,
and expanding its market share, as well as confirming its key role in
supporting the energy transition in the ferry sector.
Electric vessels Ferry operator in Norway
50%
of fleet
#1
Key information Value creation focus area
Country: Norway
Sector: Transport
Strategy: Infrastructure
www.fjord1.no
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Infrastructure continued
CVC Capital Partners plc Annual Report 2024
“Weʼre excited to work
with CVC DIF to build
on the strong position
Fjord1 has in the market,
and make the company
even stronger in the
years ahead.”
Dagfinn Neteland
CEO, Fjord1
Financial
Review
In this section:
CFO Review 33
How our results are presented 34
Key financials 35
Statutory and pro forma review 36
Key metrics and ratios 37
Segment review 38
Gross investment performance
ofkeyCVC funds
40
Fee-paying assets under
management evolution
41
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Information
32
CVC Capital Partners plc Annual Report 2024
2024 results
Following our successful listing on Euronext
Amsterdam in April 2024, I am pleased to announce
our first set of results as a listed business.
As a result of the listing and the nature and timing of
the Pre-IPO Reorganisation, as well as the acquisition
of CVC DIF, the statutory results for 31December
2024 are not directly comparable to the statutory
results for 31December 2023. We have therefore also
presented adjusted pro forma financial information
to aid like-for-like comparability.
In our first year of trading as a listed company the
Group achieved strong results, earning statutory
total revenue of €1,566m and EBITDA of €474m.
Ona like-for-like basis our adjusted pro forma total
revenue increased by 20% to €1,513m and our
adjusted pro forma EBITDA increased by 31%
to€966m (further details can be found on
pages36to37).
These results are largely driven by FPAUM growth,
including the activation of Europe / Americas Fund IX
and Asia VI. Additionally, the acquisition of CVC DIF
in July 2024 added €91m of pro forma EBITDA for
the 12 months ended 31December 2024, we saw
continued growth across Credit and Secondaries,
and we launched our first Private Wealth product in
the form of CVC-CRED.
Our balance sheet remains strong, with €533m of
adjusted cash and cash equivalents and adjusted
financial assets at fair value through profit or loss of
€1,131m, supported by €1,450m of long-term stable
private placement notes which have a combined
remaining weighted average tenor of 11 years,
andweighted average interest rate of 2.2%.
Reflecting the Group’s performance since listing
andcash generation in H2-24, the Board has
recommended a dividend of €225m (representing
€0.21 per share) to be paid in June 2025, to
shareholders on the register as at 23 May 2025.
TheBoard has adopted a policy of paying a growing
dividend and distributing a majority of the Group’s
cash profits over time, with the interim 2025 dividend
expected to be paid in October 2025.
Significant transactions
During 2024, theGroup completed a number
ofsignificant transactions, including our listing
onEuronext Amsterdam, as well as theacquisition
ofCVC DIF in July.
– As part of the listing on Euronext Amsterdam,
theGroup issued 17,857,143 shares, receiving gross
proceeds of €250m.
– As part of the listing on Euronext Amsterdam the
Group underwent a Pre-IPO Reorganisation in
which the Group acquired CVC Capital Partners
Advisory Group Holding Foundation (the Advisory
Group) on 1January 2024, and CVC Credit
Partners Group Holding Foundation (CVC Credit)
on 15 April 2024. The Advisory Group forms the
network of offices and employees procuring
investment opportunities for the private equity
funds, while CVC Credit includes both the
Performing and Private Credit strategies.
– On 1 July 2024, the Group completed its initial
acquisition of 60% of CVC DIF in exchange for
€403m of cash as well as 11,912,396 shares. This
strategic acquisition provides the Group with a
leading infrastructure platform, directly adjacent
andhighly complementary to its Private Equity,
Secondaries and Credit strategies. The Group will
acquire the remaining 40% of CVC DIF by 2029.
– The Group issued €200m private placement notes
in June 2024 to, in part, satisfy the cash
component of its acquisition of CVC DIF.
– The Group acquired a further 20% of CVC
Secondary Partners on 10 May 2024 and the final
20% on 2 July 2024, in addition to the 60%
acquired in 2022.
Looking ahead, we anticipate further strong growth
in MFE from the full year impact of new funds
activated in 2024, together with significant ongoing
fundraising across a number of our platforms.
“Our strong performance
this year is a testament to
the resilience and strength of
our long-term business model,
and these achievements are
reflected in our results, with
our FPAUM increasing 50%
to €147bn, and our EBITDA
increasing 31% to €966m.
We expect further strong
growth in EBITDA in 2025,
underpinned by our ongoing
fundraising and the full year
impact of funds activated
in 2024.”
Fred Watt
Chief
Financial
Officer
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33
CFO Review
CVC Capital Partners plc Annual Report 2024
Statutory Financial
Statements
Pro Forma Financial
Information
Adjusted
Measures
Consolidated financial statements for theyearended
31December 2024 subject to audit by the statutory auditor.
Pro forma financial information reflects the results of the
Group as if the Pre-IPO Reorganisation and the acquisition of
CVC DIF had been completed on 1January 2023.
Adjustments to the pro forma financial information to
illustrate the underlying operational performance of the
business.
Results Include: Results Include: Adjustments Reflect
1
:
Dec-24 Dec-23 Dec-24 Dec-23
Key items that do not reflect underlying
operational performance:
– non-recurring expenses, including expenses
related to the IPO and the acquisition of
CVCDIF;
– investment income, expenses and fair value
of financial assets related to fund NCI
2
;
– amortisation of acquired intangible
assets;and
– change in value of the forward liability
related to the obligation to acquire the
remaining interest in CVC Secondary
Partners and CVC DIF
3
.
Presentation of non-IFRS measures that are
considered helpful to shareholders
4
:
– Adjusted pro forma total revenue
– Adjusted pro forma EBITDA
– Adjusted pro forma profit after income tax
– Pro forma MFE
– Pro forma PRE
Management Group 12 months 12 months 12 months 12 months
CVC Secondary Partners 12 months 12 months 12 months 12 months
Advisory Group
12 months
(from date of acquisition)
NIL 12 months 12 months
CVC Credit
8 months
(from date of acquisition)
NIL 12 months 12 months
CVC DIF
6 months
(from date of acquisition)
NIL 12 months 12 months
1. The adjustments listed here represent the most material adjusting items, but do not constitute a full and complete list of adjustments.
2. Fund NCI relates to non-controlling interests of funds that are consolidated by the Group in accordance with IFRS 10.
3. The value of the forward liability reflects the value of the shares issued to the sellers of CVC Secondary Partners and the value expected to be issued to the sellers of CVC DIF. This value has increased over 2024 in line with the increase in the share price of CVC Capital Partners plc.
4. Refer to page 249 for a reconciliation of statutory financial statements to pro forma financial information, and pages 250 to 255 for a reconciliation of adjusted measures.
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How our results are presented
CVC Capital Partners plc Annual Report 2024
l
Reflects change from
Statutory Financial
Statements
628
734
966
481
557
780
144
174
182
888
1,080
1,328
Statutory financials
Statement of profit or loss
Statutory total revenue increased to €1,566m
(Dec-23: €995m) primarily due to the inclusion of
eight months of CVC Credit revenue, six months of
CVC DIF revenue, and an increase in management
fees following the activation of Europe / Americas
Fund IX and Asia VI.
EBITDA as included in our statutory results increased
to €474m (Dec-23: €359m) due to an increase in
total revenue, partially offset by the change in the
value of the forward liability of €463m.
The forward liability represents the value of the
Group’s obligation to acquire the remaining 40%
interest in CVC Secondary Partners and the
remaining 40% interest in CVC DIF.
The remaining 40% interest in CVC Secondary
Partners was acquired during the year, primarily
through the issue of shares in the Group. The
remaining 40% interest in CVC DIF is due to be
settled by the issue of shares in the Group in 2027
and 2029.
The value of the forward liability increased in the
period, in line with the increase in the share price of
CVC Capital Partners plc.
Statutory profit after income tax increased by 2% to
€308m (Dec-23: €303m). This increase is lower than
the increase in EBITDA due to an increase in
depreciation and amortisation on acquired
intangible assets, and an increase in finance
expenses from acquisitions.
Statutory basic and diluted earnings per share (EPS)
(based on the weighted average number of shares
outstanding during the year), was €0.24 in 2024.
Reflecting the Group’s performance since listing and
cash generation in H2-24, the Board has
recommended a dividend of €225m (representing
€0.21 per share) to be paid in June 2025, to
shareholders on the register as at 23 May 2025.
Financial position
Statutory cash and cash equivalents were €618m as
at 31December 2024, compared to €101m as at
31December 2023.
Statutory financial assets at fair value through profit
or loss increased to €1,891m as at 31December 2024
from €936m as at 31December 2023 primarily due
to the acquisitions of CVC Credit, the Fund VII GP,
and the StratOps II GP
1
, and fair value uplift of
€200m recognised during the year.
Long-term borrowings include €1.45bn of private
placement notes as at 31December 2024, an
increase of €200m from the year ended
31December 2023, following the issuance of
additional private placement notes in June 2024.
Adjusted measures (like-for-like)
Pro forma adjustments have been applied to the
statutory results to reflect the results of the Group, had
theGroup been formed at the start of the
comparativeperiod, and to take account of items that
do not reflect the underlying operational
performance of the business.
Adjusted pro forma total revenue increased by 20%
to €1,513m in 2024 from €1,257m in 2023, largely due
to a 23% increase in pro forma management fees as
a result of the activation of Europe / Americas Fund
IX and Asia VI in May 2024.
Adjusted pro forma EBITDA increased by 31%
to€966m in 2024 from €734m in 2023 primarily
drivenby:
– a 40% increase in pro forma management fee
earnings (MFE) which reached €780m in 2024
compared to €557m in 2023. This also reflects an
increase in the MFE margin which increased to
59%; and
– while realisation activity is yet to fully recover,
proforma performance-related earnings (PRE)
grew by 5% compared to 2023.
As a result of the above, and taking into account an
increase in finance expense due to the additional
private placement notes issued in June 2024,
adjusted pro forma profit after income tax increased
by 36% to €830m in 2024 from €609m in 2023.
Adjusted EPS, which reflects the Group’s adjusted
profit after income tax divided by 1,063,671,934
shares, was €0.78 in 2024 compared to €0.57 in
2023. The quantity of shares reflects the number of
shares outstanding as at 31 December 2024 and the
impact of the Group’s LTIP.
Pro Forma Management Fees (€m)
2
23%
2022
2023
3
2024
4
MFR as %
ofrevenues
86% 86% 88%
Adjusted Pro Forma EBITDA (€m)
5
31%
2022
2023
3
2024
4
Adj. EBITDA
margin
61% 58% 64%
MFE margin
54% 52% 59%
•
•
MFE PRE
Adjusted Pro Forma Profit After Income Tax (€m)
36%
2022
2023
3
2024
4
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35
Key financials
CVC Capital Partners plc Annual Report 2024
Notes: Adjusted measures (including pro forma information, pro forma MFE and pro forma PRE) are APMs. For a full list of APMs and reconciliations
to IFRS measures, refer to pages 249 to 255. Figures may not sum due to rounding.
1. As part of its final reorganisation steps the Group acquired CVC Capital Partners Strategic Opportunities II Limited and CVC Capital Partners VII
Limited, and as a result is considered to control StratOps II and Fund VII from 30 April 2024 and 6 June 2024, respectively. The Group therefore
consolidated an additional €447m of financial assets at fair value through profit or loss relating to NCI from these dates.
2. Pro forma management fees, adjusted pro forma EBITDA and adjusted pro forma profit after income tax exclude €7m of CVC DIF catch- up
fees in 2023 and €10m in 2024.
3. 2023 figures reflect the Group’s final perimeter post its Pre-IPO Reorganisation, resulting in minor differences compared to 2023 values as
presented within the Group’s IPO prospectus. 2022 figures are equivalent to those presented within the Group’s IPO prospectus.
4. Totals excluding H1-24 contribution from CVC DIF are: pro forma management fees of €1,243m, adjusted pro forma EBITDA of €923m, pro
forma MFE of €737m and adjusted pro forma profit after income tax of €802m.
5. Included in adjusted pro forma EBITDA is other operating income of €3m as at 31December 2024 (Dec-23: €3m; Dec-22: €3m).
830
609
560
Dec-24 Dec-23
(€ 000) Statutory Adjustments Pro Forma Statutory Adjustments Pro Forma
Management fees 1,181,234 146,415 1,327,649 743,368 336,224 1,079,592
Carried interest and performance fees 173,170 (670) 172,500 163,170 6,354 169,524
Investment income 207,528 6,688 214,216 81,428 11,069 92,497
Other operating income 3,733 (610) 3,123 6,752 641 7,393
Total revenue 1,565,665 151,823 1,717,488 994,718 354,288 1,349,006
Advisory fee expense — — — (400,437) 400,437 —
Personnel expenses (427,668) (61,448) (489,116) (59,902) (385,435) (445,337)
General and administrative expenses (193,838) (17,137) (210,975) (95,883) (123,135) (219,018)
Change in valuation of forward liability (463,305) — (463,305) (84,825) — (84,825)
Foreign exchange losses (3,188) (974) (4,162) 5,706 (1,944) 3,762
Expenses with respect to investment vehicles (4,010) (44) (4,054) (440) (494) (934)
EBITDA 473,656 72,220 545,876 358,937 243,717 602,654
Depreciation and amortisation (125,033) (55,523) (180,556) (25,991) (151,606) (177,597)
Total operating profit 348,623 16,697 365,320 332,946 92,111 425,057
Finance income 12,878 370 13,248 10,788 4,632 15,420
Finance expense (53,035) 1,501 (51,534) (31,251) (10,553) (41,804)
Profit before income tax 308,466 18,568 327,034 312,483 86,190 398,673
Income tax charge (350) (9,154) (9,504) (9,769) (43,684) (53,453)
Profit after income tax 308,116 9,414 317,530 302,714 42,506 345,220
Attributable to:
Equity holders of the parent 225,295 11,775 237,070 280,493 39,111 319,604
Non-controlling interests 82,821 (2,361) 80,460 22,221 3,395 25,616
Dec-24 Dec-23
(€ 000) Statutory Adjustments Pro Forma Statutory Adjustments Pro Forma
Cash and cash equivalents 618,289 — 618,289 100,677 395,634 496,311
Financial assets at fair value through profit or loss 1,890,532 — 1,890,532 935,674 160,216 1,095,890
Pro forma adjustments have been applied
tothestatutory results to reflect the Pre-IPO
Reorganisation, and include four months of CVC
Credit and six months of CVC DIF. See page 34
fordetails on How we present our results.
Total revenue — Statutory total revenue of €1,566m
(Dec-23: €995m) has been adjusted to add €152m of
revenue from CVC Credit and CVC DIF (Dec-23:
€354m) to reach pro forma total revenue of €1,717m
(Dec-23: €1,349m).
EBITDA — Statutory EBITDA of €474m (Dec-23:
€359m) has been adjusted to add €72m of EBITDA
from CVC Credit and CVC DIF (Dec-23: €244m) to
reach pro forma EBITDA of €546m (Dec-23: €603m).
Advisory fee expense was paid in previous periods to
the Advisory Group, and is eliminated from the date
of acquisition of the Advisory Group.
Profit after income tax — Statutory profit after
income tax of €308m (Dec-23: €303m) has been
adjusted to add €9m of profit after income tax
fromVC Credit and CVC DIF (Dec-23: €43m) to
reach pro forma profit after income tax of €318m
(Dec-23: €345m).
The Pre-IPO Reorganisation and acquisition of
CVCDIF resulted in €72m of additional EBITDA
forthe Group. This is offset by €56m of additional
amortisation largely related to intangible assets
recognised as part of the Pre-IPO Reorganisation
andthe acquisition of CVC DIF. Income tax charge
has also increased due to the increase in operational
profits and higher effective tax rate of CVC DIF.
Referto page 37 for a reconciliation from pro forma
measures to adjusted pro forma measures.
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Statutory and pro forma review
CVC Capital Partners plc Annual Report 2024
Dec-24 Dec-23
Statement of Profit or Loss Pro Forma
1
Adjusted
1
Pro Forma
1
Adjusted
1
Total revenue (€m) 1,717 1,513 1,349 1,257
EBITDA (€m) 546 966 603 734
Profit after income tax (€m) 318 830 345 609
MFE (€m) — 780 — 557
MFE margin (%) — 59% — 52%
PRE (€m) — 182 — 174
Weighted average FPAUM (€bn) — 134 — 110
Management fee rate — 1% — 1%
Dec-24 Dec-23
Statement of Financial Position (€m) Pro Forma
1
Adjusted
1
Pro Forma
1
Adjusted
1
Cash and cash equivalents
2
618 533 496 291
Financial assets at fair value through profit or loss 1,891 1,131 1,096 833
Assets Under Management (€bn) Dec-24 Dec-23
3
AUM 200 186
FPAUM 147 112
Other Fund Metrics (€bn) Dec-24
3
Dec-23
3
Deployment 25.6 14.9
Realisations 13.1 6.1
EPS (€) Dec-24 Dec-23
Basic and diluted EPS 0.24 0.39
Adjusted EPS
4
0.78 0.57
Employees Dec-24 Dec-23
FTE (end of period)
5
1,258 1,148
Adjusted Pro Forma Total Revenue
6
(€ 000) Dec-24 Dec-23
Pro forma total revenue 1,717 1,349
Less: Investment income attributable to NCI (105) (21)
Less: FX on carried interest provision (12) 6
Less: Performance-related costs (88) (73)
Less: Exceptional other operating income — (4)
Adjusted pro forma total revenue 1,513 1,257
Adjusted Pro Forma EBITDA
6
(€ 000) Dec-24 Dec-23
Pro forma EBITDA 546 603
Add back: Change in valuation of forward liability 463 85
Less: Investment income attributable to NCI (105) (21)
Add back: Other APM adjustments 61 68
Adjusted pro forma EBITDA 966 734
Pro Forma Adjusted Profit After Income Tax
6
(€ 000) Dec-24 Dec-23
Pro forma profit after income tax 318 345
Add back: Change in valuation of forward liability 463 85
Less: Investment income attributable to NCI (105) (21)
Add back: Amortisation of acquired intangible assets net of deferred tax 110 110
Add back: Other APM adjustments 44 90
Adjusted pro forma profit after income tax 830 609
1. Pro forma and adjusted measures reflect the Group’s results as if the Pre-IPO Reorganisation and acquisition of CVC DIF had been completed
as at 1January 2023. Pro forma balance sheet figures as at 31December 2024 are equivalent to statutory figures. Refer to page 249 for
further information.
2. Cash and cash equivalents as at 31December 2023 include a pro forma adjustment to include CVC DIF cash and cash equivalents.
3. Includes CVC DIF from 1 January 2023.
4. Adjusted EPS reflects the Group’s adjusted profit after income tax, divided by 1,063,671,934 shares, which reflects the number of shares
outstanding as at 31December 2024 and the impact of the Group’s LTIP. Refer to page 254 for details on adjusted EPS.
5. FTE represents full time equivalents.
6. Refer to pages 250 and 251 for further APM reconciliation details.
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Key metrics and ratios
CVC Capital Partners plc Annual Report 2024
Private Equity
Key Metrics Dec-24 Dec-23
AUM (€bn) 119 116
FPAUM (€bn) 79.0 50.3
Deployment (€bn) 13.3 4.2
Realisations (€bn) 11.0 5.1
FTE (end of period) 277 271
Gross contribution (€m) 759 545
Fundraising activity
In 2024, Asia VI closed at $6.8bn (Feb-24) and the
Group completed the initial closes for Growth III and
StratOps III. StratOps III completed its final close in
Feb-25 with €4.6bn of commitments.
FPAUM
FPAUM growth from €50.3bn as at 31December
2023 to €79.0bn as at 31December 2024, due to
activation of Europe / Americas Fund IX (+€26.0bn)
and Asia VI (+€6.4bn) offset by step-downs in
predecessor funds.
Deployment and realisations
Deployment in 2024 of €13.3bn vs €4.2bn in 2023
reflects 23 investments signed across the Europe /
Americas, Asia and StratOps funds, including the
first investments signed on behalf of StratOps III
and Asia VI.
Realisations more than doubled to €11.0bn for
2024from €5.1bn for 2023, following a recovery
incorporate and sponsor M&A, notwithstanding
public-market volatility.
Key financials
Gross contribution increased to€759m in 2024 from
€545m in 2023, as a result of management fee
increase following the activation of Europe / Americas
Fund IX and Asia VI in May 2024, together with
disciplined cost management across the business.
Secondaries
Key metrics Dec-24 Dec-23
AUM (€bn) 18 13
FPAUM (€bn) 13.6 9.7
Deployment (€bn) 2.4 1.2
Realisations (€bn) 1.0 0.6
FTE (end of period) 43 37
Gross contribution (€m) 75 82
Fundraising activity
In 2024, the Group launched fundraising for SOF VI
and completed the initial close of $3.5bn. It remains
well on track to reach its $7bn AUM target.
FPAUM
FPAUM growth (+€3.9bn) between December 2023
and December 2024 is due to the initial closing
ofSOF VI.
Deployment and realisations
Investment momentum for Secondaries remains
strong across GP-led and LP-led transactions,
with€2.4bn deployed in 2024 (+93% vs 2023)
1
.
Realisations increased to €1.0bn in 2024 from
€0.6bn in 2023.
Key financials
Gross contribution decreased to €75m in 2024 from
€82m in 2023. This is mainly due to the step-down
inmanagement fees of predecessor funds and
higher people costs, while SOF VI is yet to fully
contribute to revenues (fees of €15m in 2024).
Thegross contribution in 2023 was boosted by
theinclusion of €14m of catch-up fees relating
toadditional closes of SOF V commitments which
were not repeated in2024.
Credit
Key metrics Dec-24 Dec-23
AUM (€bn) 45 40
FPAUM (€bn) 40.6 38.2
Deployment (€bn) 8.0 6.7
FTE (end of period) 76 71
Gross contribution (€m) 147 122
Fundraising activity
In 2024, Credit issued €4bn of new CLOs across
itsglobal platform and CapSol III closed at €1.6bn
(Oct-24). In March 2024, the Group launched its first
evergreen Credit vehicle (CVC-CRED), which had
€0.7bn in aggregate value
2
as at 31December 2024.
As at 31December 2024, the Group continues
fundraising for EUDL IV, having secured in excess of
€7.6bn of investable capital (surpassing its €6bn
target), and CLO Equity IV.
FPAUM
FPAUM growth (+€2.4bn) between December 2023
and December 2024 due to strong CLO issuance as
well as net deployment across Private Credit and
CVC-CRED vehicles, partly offset by refinancing
activity in the market.
Deployment
Record deployment
3
across CVC Credit of €8.0bn in
2024, up from €6.7bn in 2023, driven by significant
CLO issuances in Performing Credit and strong
deployment in Private Credit, from both new capital
and refinancing of assets.
Key financials
Gross contribution increased to €147m in 2024 from
€122m in 2023, due to higher management fees as
aresult of higher FPAUM. In addition, CVC generated
its first underwriting fees from its broker-dealer
in2024, contributing €8m to gross contribution.
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Segment review
Review of adjusted pro forma operating segments for the year ended 31 December 2024
CVC Capital Partners plc Annual Report 2024
1. Secondaries deployment is net investment exposure which represents the initial funded equity purchase price plus unfunded commitments
reasonably expected to be called over the life of the transaction.
2. Including 2 January 2025 subscriptions and corresponding leverage.
3. Credit deployment based on movement in FPAUM by vehicle (excl. FX and exits).
Infrastructure
1
Key metrics Dec-24 Dec-23
AUM (€bn) 19 17
FPAUM (€bn) 14.1 14.3
Deployment (€bn) 1.9 2.8
Realisations (€bn) 1.1 0.4
FTE (end of period) 124 126
Gross contribution (€m) 134 127
Fundraising activity
In 2024, DIF VII closed at €4.4bn (Feb-24) and VA III
closed at €1.6bn (Feb-24).
FPAUM
FPAUM marginally lower at €14.1bn as at
31December 2024 compared to €14.3bn as at
31December 2023. This is mainly due to the closings
ofDIF VII and VA III and side-car vehicle investments
(€0.8bn) offset by realisations and end-of-
investment-period step-downs in other funds (€1bn).
Deployment and realisations
Deployment faced some year-on-year slowdown
forInfrastructure (€1.9bn in 2024 vs €2.8bn in 2023)
following a strong 2023. As DIF VII and VA III are
already 80-90% committed (incorporating additional
amounts where investment is highly likely), the team
has been particularly focussed on value creation and
exits ahead of fundraising for DIF VIII and VA IV,
which launched in January 2025. Realisations
increased from €0.4bn in 2023 to €1.1bn in 2024.
Key financials
Gross contribution increased to €134m in 2024 from
€127m in 2023 as a result of higher management
fees, partially offset by higher direct people costs.
Higher management fees resulted from larger fund
sizes for DIF VII and VA III following February 2024
closes as well as catch-up fees recorded in the
second half of 2024.
Central
2
Key metrics Dec-24 Dec-23
FTE (end of period) 738 643
Gross contribution (€m) (334) (320)
Employees
FTE has increased to 738 as at 31December 2024
from 643 in December 2023, which reflects
continued investment across the platform to support
our strategies with their strategic objectives including
CPS growth and AI initiatives.
Key financials
Central gross contribution reflects business expenses
related to all non-investment-officer (IO) people costs
and all non-people costs. These expenses have
increased to €334m in 2024 from €320m in 2023.
This is primarily due to higher non-IO people costs as
a result of headcount investment noted above.
Adjusted pro forma operating segments for 2024
3
All figures in (€m)
Private
Equity
Second-
aries Credit Infra Central Total
Less
Infra
(H1)
6
Total
excl.
Infra (H1)
Management fees 861 95 197 175 — 1,328 85 1,243
People costs (102) (20) (50) (41) (185) (399) (34) (365)
Non-people costs — — — — (148) (148) (8) (140)
Gross contribution /
Pro formaMFE
4
759 75 147 134 (334) 780 43 737
Carried interest and
performance fees 161 161
Investment income 109 109
PRC
5
(88) (88)
Pro forma PRE
4
182 182
Other operating income 3 3
Adjusted pro forma
EBITDA
4
966 43 923
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Segment review continued
Review of adjusted pro forma operating segments for the year ended 31 December 2024
CVC Capital Partners plc Annual Report 2024
Note: Figures may not sum due to rounding.
1. Infrastructure gross contribution for the year ended 31December 2024 excludes €10m of management fees related to catch-up fees earned in the first
half of 2024.
2. Central reflects all people costs other than IOs, plus all non-people costs of the business.
3. Refer to page 256 for adjusted pro forma operating segments for 2023.
4. Refer to pages 249 to 255 for reconciliation of adjusted pro forma measures back to IFRS measures.
5. PRCs are performance-related costs incurred in the generation of PRE. Expenses reflect 20% of all people costs (excluding CVC DIF and Credit
investment team personnel), plus Credit performance fees payable to Credit investment team personnel as bonus awards.
6. Total profit after income tax excluding H1-24 contribution from Infrastructure is €802m. H1-24 Infrastructure profit after income tax includes €2m of
depreciation and amortisation, €2m of net finance expense, and €15m of income tax charge.
Invested Capital Value of Investments
As at 31 December 2024 Start Date FPAUM
Deployment %
1
Total Realised Remaining Total Realised Remaining Gross MOIC
2
Europe / Americas (€bn)
Fund VI 2014 4.7 >100% 10.9 6.0 4.9 29.6 19.8 9.8 2.7x
Fund VII 2017 9.2 >100% 15.3 5.6 9.7 39.0 15.7 23.3 2.5x
Fund VIII 2020 18.5 95-100% 19.6 0.2 19.4 24.6 0.2 24.4 1.3x
Fund IX 2023 26.0 25-30% 5.5 — 5.5 5.7 — 5.7 1.0x
Asia ($bn)
Asia IV 2014 0.7 95-100% 2.9 2.1 0.7 6.4 4.6 1.8 2.2x
Asia V 2020 3.5 95-100% 3.7 — 3.7 5.9 — 5.9 1.6x
Asia VI 2024 6.6 25-30% 0.8 — 0.8 0.9 — 0.9 1.1x
StratOps (€bn)
StratOps I 2016 2.7 90-95% 3.4 1.5 1.9 8.0 2.3 5.7 2.3x
StratOps II 2019 3.6 90-95% 4.0 0.5 3.5 6.2 0.8 5.4 1.6x
StratOps III 2024 0.4 20-25% 0.4 — 0.4 0.5 — 0.5 1.1x
Growth ($bn)
Growth I 2015 0.3 >100% 0.9 0.6 0.3 2.1 1.2 0.8 2.3x
Growth II 2019 1.5 80-85% 1.1 0.2 0.9 1.9 0.2 1.7 1.7x
Secondaries ($bn)
3
SOF II/III/IV Various 4.9 100% 4.9 3.9 1.0 8.0 5.2 2.8 1.6x
SOF V 2021 5.6 95-100% 4.9 1.1 3.8 7.4 1.2 6.2 1.5x
SOF VI 2024 3.1 15-20% 0.4 — 0.4 0.5 — 0.5 1.3x
Infrastructure (€bn)
DIF V 2017 1.6 95-100% 1.7 0.1 1.6 2.9 0.1 2.8 1.7x
DIF VI 2020 2.6 95-100% 2.6 — 2.6 3.8 0.1 3.8 1.5x
DIF VII 2022 4.4 75-80% 3.2 — 3.2 3.6 — 3.6 1.1x
VA I 2017 0.3 95-100% 0.4 0.1 0.3 0.7 0.2 0.5 1.6x
VA II 2019 0.8 90-95% 0.8 — 0.8 1.4 0.1 1.3 1.6x
VA III 2022 1.6 75-80% 1.2 — 1.2 1.5 — 1.5 1.3x
Note: Figures may not sum due to rounding. Carried interest contribution to the Group is 30% of total carried interest except for Fund VI (0%), Fund VII (15%), SOF II-V (0%) and DIF V-VII / VA III (0%). Carried interest rates are 20% except for StratOps I and StratOps II (12.5% – headline rate), and SOF
funds (12.5%).
1. Includes investments that have been signed but have not yet closed as at 31December 2024 (figures are presented on a committed basis, e.g. upon signing or announcement of a new investment or investment exit, which may include estimated cash flows that may differ to actual cash flows
that eventuate at closing). Deployment percentages include fees and expenses for which capital has been called from clients. Funds with over 100% deployment include triggered recycled capital.
2. Gross MOIC calculated as total value of investments divided by total invested capital. Total value and invested capital for Infrastructure includes committed but not yet funded capital of closed investments as at 31December 2024.
3. Secondaries includes overflow fund.
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Gross investment performance of key CVC funds
CVC Capital Partners plc Annual Report 2024
FPAUM evolution over 2024
FPAUM by segment (€bn)
Europe /
Americas Asia
Strategic
Opportunities Growth Secondaries Credit Infrastructure
1
Total
As at 31 December 2023 37.0 5.0 6.6 1.7 9.7 38.2 14.3 112.4
Gross inflows/investments 31.5 6.4 0.6 — 3.3 8.0 0.8 50.6
Step-downs (5.7) (0.8) — — — — (0.6) (7.1)
Exits (2.8) (0.5) (0.5) — — (6.6) (0.4) (10.8)
Foreign exchange/other — 0.3 — 0.1 0.7 1.1 — 2.2
As at 31 December 2024 60.0 10.5 6.7 1.8 13.6 40.6 14.1 147.3
Weighted average FPAUM 52.0 8.5 6.6 1.7 11.3 39.3 14.7 134.0
Management fee revenue (€m) 669 112 56 24 95 197 174 1,328
Management fee rate (%) 1.3% 1.3% 0.9% 1.4% 0.8% 0.5% 1.2% 1.0%
FPAUM evolution over 2023
FPAUM by segment (€bn)
Europe /
Americas Asia
Strategic
Opportunities Growth Secondaries Credit Infrastructure
1
Total
As at 31 December 2022 38.4 5.3 5.6 1.7 9.0 33.6 13.0 106.7
Gross inflows/investments 0.3 — 1.0 — 1.2 6.7 1.3 10.5
Step-downs — — — — — — — —
Exits (1.7) (0.2) — — — (1.5) — (3.4)
Foreign exchange/other — (0.2) — (0.1) (0.5) (0.5) — (1.3)
As at 31 December 2023 37.0 5.0 6.6 1.7 9.7 38.2 14.3 112.4
Weighted average FPAUM 37.6 5.2 6.2 1.7 9.3 36.1 13.9 110.1
Management fee revenue (€m)
2
498 70 52 24 99 172 171 1,088
Management fee rate (%) 1.3% 1.3% 0.8% 1.4% 1.1% 0.5% 1.2% 1.0%
Note: Figures may not sum due to rounding.
1. Represents CVC DIF (acquisition signed in September 2023 and completed on 1 July 2024).
2. For the year ended 31 December 2023, management fees aggregated total includes €0.4 million of management fees attributed to the Advisory Group and €1.0 million of management fees attributed to the Management Group from managed funds.
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Fee-paying assets under management evolution
CVC Capital Partners plc Annual Report 2024
Risk Overview
In this section:
Risk strategy and governance 43
Risk management framework 45
Principal risks and uncertainties 47
Viability statement 52
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CVC Capital Partners plc Annual Report 2024
CVC’s approach to risk and
business processes support
ourlong-term objective
ofproviding consistent
investment performance for
investors in our funds. Our
approach also ensures we align
our interests with our partners,
clients, and other stakeholders.
Our risk management framework is designed to
manage risk to acceptable predefined levels, rather
than eliminate risk entirely, and to harness risk
management tools and techniques to inform
business decisions and optimise performance.
Alignment with our values
Our values are an integral part of who we are. Our
risk appetite, and the framework through which we
implement it, seek to further embed these values in
our risk culture and conduct, and are inherent in our
evaluation of risk.
Two key principles of our risk culture are
transparency and improvement. We encourage
allemployees to discuss and report risks, errors or
concerns in an open, ‘no blame’ environment. This
allows us to build a better, more resilient business,
and to achieve the best possible outcomes for all
our stakeholders.
Risk governance
The Board has overall responsibility for risk
management, including approving our risk appetite.
The Board delegates detailed oversight of risk
management to the Risk Committee.
The Board, as part of the review of the overall Annual
Report and Accounts, completed an assessment
ofthe principal risks facing the Company to ensure
thatthey are appropriately captured and mitigated.
The Committee, on behalf of the Board, review the
principal risks and uncertainties at each committee
meeting ensuring that they remain applicable to the
Company in light of the environment in which the
Company operates. As such, the Directors confirm
that they have carried out a robust assessment of
the principal and emerging risks facing the Group,
including those that would threaten its business
model, future performance, solvency or liquidity
andreputation. We describe and assess our
principaland emerging risks and uncertainties
onpages 47 to 51 and explain how they are being
managed or mitigated.
Risk Committee
The Risk Committee is an independent sub-
committee of the Board, responsible for challenging
the design and effectiveness of our risk management
framework. It considers any material matters
(including internal and external events, control
weaknesses and failures, and new or emerging risks)
and escalates to the Board where appropriate, and
recommends Board approval of ourRiskAppetite
Policy (RAP). The Risk Committee assesses the
principal risks and uncertainties at each Committee
meeting, ensuring detailed action plans are in place
to mitigate risks identified. As part of the year-end
reporting process, the Committee reviewed the
principal risks and uncertainties in the Annual Report
and Accounts, to ensure that emerging andprincipal
risks are identified and appropriately managed. The
principalrisks and uncertainties can be found
onpages 47 to 51.
Audit Committee
The Audit Committee is an independent sub-
committee of the Board, responsible for overseeing
the integrity of CVC’s financial statements and
related financial and non-financial reporting,
including reviewing the controls supporting the
production and accuracy of the reporting. The Audit
Committee also directs our internal assurance
function, approving itsaudit plan, which is devised
using a risk-based approach by the Internal
Assurance team with input from key stakeholders
including the executive and Risk team.
Group Risk Committee (GRC)
The Group Risk Committee is an executive
committee, responsible for the monitoring, design
and implementation of the risk management
framework. It reports to the Risk Committee,
overseeing delivery of materials requested by, or
being escalated to, the Risk Committee (in line with
our RAP). The GRC is also responsible for challenging
the assessment and proposed remediation of any
material risks, and for escalating risks in accordance
with our RAP.
Specialist Committees
CVC has established specialist committees to
oversee technical subject matters (e.g. investments,
information security, sustainability, people). Our Risk
team works closely with them to ensure alignment
with our RAP.
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Risk strategy and governance
CVC Capital Partners plc Annual Report 2024
Three lines of defence
Combined assurance is the effective coordination
ofCVC’s three lines of defence. This model
providesaholistic view of the Group’s risk universe,
and allowsus to manage risk in the most efficient
and effective way.
We have established a ‘three lines of defence’ model,
which balances subject-matter expertise, business
empowerment, and independent supervision.
1st line
Risk owners and Subject-Matter Experts (SMEs)
Risks are assigned to relevant management, who
areSMEs with a deep understanding of the processes
they oversee. They are best placed to identify, assess
and manage their risks. This approach also
establishes accountability.
2nd line
Independent challenge
Legal, Risk and Compliance teams operate
independently of, but in partnership with, the
business. They implement frameworks the business
operates in, and support and challenge risk owners
on their activities and assessments of risk.
3rd line
Independent assurance
The Internal Assurance team are independent of the
business, reporting to, and operating at the direction
of, the Audit Committee. They assess the design
suitability and operational effectiveness of business
controls, underpinning their work with sample-based
testing and thematic reviews.
Risk management developments
Following the IPO, changes to the Group’s
governance structures and delegations of authority
have been implemented to reflect the post-IPO
corporate structure and support the reporting
requirements of the Board and its sub-committees.
In addition to becoming a listed business,
CVCisincreasing in size and complexity through
acombination of organic growth, the addition
ofnewstrategies and investor pools, and the
acquisition of complementary businesses. CVC’s
operating environment is also becoming more
complex as global legislators and regulators respond
to their own challenges, therefore the structure and
formality of our control environment is increasingly
important and will require continuous monitoring
and development. To ensure we are well-positioned
to navigate these challenges, we have embarked on
a journey comprising several initiatives to enhance,
formalise, and improve our governance and control
structures. We have described some of this work in
more detail in the relevant principal risks.
GRC activities in 2024 since IPO
The GRC was established prior to the IPO, to oversee the
development and implementation of changes to CVC’s
risk governance and risk management framework.
Following the IPO, a review of the GRC composition
was undertaken, which resulted in changes to ensure
a balance of seniority and subject matter expertise
was achieved. The GRC has otherwise continued to
support the Board and Risk Committee by monitoring
the principal risks set out in the following section,
monitoring the operating environment for changes
and assessing the impact of those changes,
andoverseeing key business changes, such as the
information security project (see ‘operational’ in the
principal risks section) and the establishment of an AI
governance framework.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
44
Risk strategy and governance continued
CVC Capital Partners plc Annual Report 2024
Portfolio Company: Ontic
Fund Investment: Europe / Americas Fund VIII
CVC operates in a highly competitive, regulated
environment, and is subject to internal and external
factors that can have a material impact on both
financial and non-financial performance, including
the achievement of strategic objectives.
Our risk management framework is designed to
maintain the Group’s financial and operational
resilience by identifying and assessing risks, and
helping to build practical and pragmatic ways to
manage them whilst optimising any opportunities
they may present.
A specialist, dedicated team of risk management
professionals designs and oversees our risk
management framework.
The Risk Committee regularly reviews our principal
risks through a standing report from the GRC.
Inthis,the GRC considers factors affecting each
principal risk before determining a risk profile,
andsummarises the factors and profile in the
RiskCommittee’s report.
The GRC also liaises closely with our various executive
committees to ensure there is a common position
and aligned approach to understanding and
assessing risks and threats, and achieving
strategicobjectives.
Our risk framework uses several tools to monitor and
measure risk profiles, including: stress and scenario
tests; risk assessments; resilience programmes and
testing; key risk indicators; horizon scanning; and
internal and external risk event analysis (if relevant
toCVC’s business or operating model).
Risk management process
CVC’s risk management process aims to
continuously improve the design and operation
ofthe control environment, and to ensure our risk
appetite is monitored and regularly reviewed to
ensure it remains suitable and considers any changes
to the internal or external environment.
Alignment with strategy
The Board is responsible for setting the Group’s
strategy, which in turn is considered in the context
ofthe design and execution of the risk management
framework and priorities of the various risk
committees and oversight teams. Group strategy
isalso a key driver of the Group’s risk appetite.
Setting risk appetite
Risk appetite thresholds are defined by either
quantitative measures, or by assessing the likelihood
and impact of a risk’s outcome against a pre-defined
materiality matrix.
The Risk team formulates quantitative risk appetite
thresholds in conjunction with SMEs, back-testing
against previous period outputs to ensure they are
appropriately calibrated.
The materiality matrix provides ‘real world’ examples
of outcomes at different severities against a variety
of impacts, including to the operating model, legal
and regulatory outcomes and reputational impacts.
This is designed to be a more intuitive guide for the
business to what could be a complex assessment.
On an annual basis, or where changes to risk
appetite are proposed, the GRC will leverage the
subject matter expertise of its members, to challenge
any changes before the Risk Committee perform
their independent review and recommend any
revisions to the Board.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
45
Risk management framework
CVC Capital Partners plc Annual Report 2024
A key risk indicator dashboard comprising both the
quantitative measures and qualitative assessments
of each principal risk is presented to the GRC and
Risk Committee for review and challenge with
anyrisks exceeding appetite levels requiring a
commentary and action plan (where necessary).
Designing and operating the risk framework
The Risk team designs the risk framework and
ensuresit is adapted to reflect changes in best
practice or in CVC’s operating model and product
offerings. The design is challenged by the GRC and
approved by the Risk Committee. The framework
includes tools that are operated by risk owners and
helpbuild a picture of our risk landscape and how
wellit is controlled.
Risk monitoring and management
The Risk team use various tools as described in the
‘Risk management framework’ section. These tools
are designed to monitor risk within the business.
Where risks are identified, or risk profiles are elevated,
the Risk team work with the business to agree
management plans and actions, which are then
tracked at an appropriate forum given the
materiality of the risk.
CVC employs various techniques for managing risks
it identifies, these include: reducing the likelihood
of‘controllable risks’ (e.g. through implementing
controls); reducing the impact of ‘uncontrollable
risk’ (through diversification or hedging tools or
instruments); transferring risks where it is more
efficient or cost effective (either by outsourcing to
specialist third parties, or insuring against the risk at
unacceptable levels); or specifying risks that must be
avoided (e.g. through the product development or
operational change processes).
Risk profiling and escalation
The RAP sets out criteria for assessing risk materiality
and materiality-based escalation. Risk owners
assessand rate risks in line with the RAP, and are
challenged by the Risk team. The Risk team then
aggregates risk profiles at hierarchical levels, up
toprincipal risk categories, to enable appropriate
reporting. Elevated risk levels, or issues arising,
areescalated in line with the RAP.
Risk framework validation
The Risk team re-evaluates the framework annually
before presenting any findings or proposed changes
to the Risk Committee for approval. Internal
Assurance may independently review or challenge
the framework, or specific controls at the direction
ofthe Audit Committee.
Emerging risks
CVC’s operating environment is constantly evolving,
so we are continually scanning for new risks that
may impact the business. These may result from
changes in the external environment (regulatory
changes, geopolitical shifts, investor sentiment),
orfrom internal changes to product offering or
operational change.
Emerging risks are foreseeable changes to the
environment that are likely to have a direct impact
on CVC’s business and that would require lead time
to develop and execute a management action plan.
The Risk team maintains a ‘Risk Radar’ of emerging
risks that is informed through regular discussion with
business stakeholders, external advisers and legal
counsel, industry bodies, amongst other information
sources. Where identified, emerging risksare
assessed to understand their potential impact and
management plans are proposed and tracked
alongside ‘active’ risks through the GRC and
Risk Committee.
Key emerging risks under review are explained inthe
‘2024 year in review’ under therelevant principal risk.
Whistleblowing
The Board has delegated oversight of the Group’s
whistleblowing policies and procedures to the Risk
Committee. Whistleblowing events are a standing
agenda item at the Risk Committee, with any reports
discussed on an anonymised basis; these may be
escalated to the Board where they are deemed
sufficiently material. The Risk Committee is
supported by the People team who oversee
employee conduct matters, which can include
whistleblowing, in conjunction with the Compliance
team. Furthermore, the GRC monitor key conduct
risk measures and review any material events on an
anonymised basis that are escalated by the People
team or Compliance; the GRC will in turn escalate
any such matters to the Risk Committee that are
deemed sufficiently material.
The Group is committed to the highest standards of
openness, probity and accountability. An important
aspect of accountability and transparency is
amechanism to enable employees and other
members of the Group to voice concerns in an
effective manner. As such, the Board has adopted
aformal policy for raising concerns. All employees
are assured that CVC considers all forms of
misconduct to be extremely serious and actively
encourages any concerns to be raised in order
thatthe matter can be investigated and dealt with
speedily. The policy is designed to offer protection to
employees who raise any such concerns. Monitoring
the effectiveness and appropriateness of the policy
also falls within the remit of the Risk Committee,
supported by the Internal Assurance and
Compliance teams.
Any potential incidents that are reported, via the
anonymous reporting facility or directly to individual
line managers or leadership, are followed up and
investigations launched where appropriate. Ongoing
investigations and their outcomes are reported to the
Risk Committee.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
46
Risk management framework continued
CVC Capital Partners plc Annual Report 2024
Business and
strategic risks
Risk Appetite:
Moderate
Trend over period:
Stable
– The Group could fail to properly formulate or execute
itsstrategy, leading to underperformance against its
strategic objectives. This could result from poor
management decision-making or a failure to identify
and respond to changes in the external environment
(such as geopolitical changes). This could result in loss of
investor confidence impacting CVC’s reputation, share
price and our ability to raise funds or access capital
markets in the future.
– Fundraising objectives may not be met, either as a result
of poor product offerings, underperformance of existing
funds, or due to external factors such as our asset
classes falling out of favour with clients. Fundraising
assumptions directly drive recurring revenue forecasts
asthey are the basis of management fee generation
(the most stable and predictable element of the Group’s
revenue). As such, missing client commitment targets
would result in lower management fees, and any delay
to fundraising closes or investment start date would
defer collection of management fees. In both instances,
the Group could fail to achieve financial performance
targets for shareholders. We explain this risk in further
detail in scenario 1 and 3 of the viability statement on
page 52.
– The Group could fail to appropriately manage its
financial affairs, resulting in loss or devaluation of assets,
leading to a reduction in shareholder value. This could
include mismanagement of CVC’s assets or failure to
properly manage credit risk arising from fee debtors or
other financial facilities used in the business to manage
its capital.
– Sustainability commitments may not be met, leading to
reputational damage and loss of investor confidence.
– The CVC brand could be damaged by failings in other
principal risk areas, which could impact our ability to
attract and retain clients, talent, and raise future capital
through shareholders and capital markets.
– Governance and reporting structures, including the Board’s
oversight of the executive team, are designed to ensure that
ourstrategic objectives and commitments to shareholders are
defined, implemented and monitored. Key decision-making
follows a formal delegation of authority model to ensure an
appropriate balance between management control and
independent oversight.
– CVC has a highly experienced and dedicated client management
function through its Client and Product Solutions team, and a
structured, repeatable fundraising approach that it is able to
leverage across each of its strategies. The team has fostered
strong relationships with clients, and is able to react to market
demands for new products, including adapting fund strategies
tomeet individual preferences of clients. This is a key team within
CVC, and one we continue to invest in.
– Financial risks including financial planning and the size and
variability of non-recurring revenue are managed by the Finance
team. Investment valuations follow a defined policy and are
subject to robust challenge through mature governance
structures. Transparency of information flow between finance
and investment teams ensure variable revenue is subject to
appropriate haircuts.
– The Group has a dedicated treasury function that oversees
elements of balance sheet exposure, including monitoring large
cash balances and managing counterparty risk through
diversification and use of institutions and/or instruments of
suitable credit quality. Whilst there are currency variations in
revenue and expenses across the Group, these are diluted to
acceptable levels through diversification of our operating
geographies. Other significant balance sheet exposures are
intheform of investments into funds, which are diversified
bygeography and sector.
– Further information on specific financial risks and risk
management are detailed in note 27 of the notes to the
consolidated financial statements.
– A dedicated Sustainability team operates within principles and
objectives set by CVC’s Sustainability Committee. These targets
are monitored and reported to GRC and the RiskCommittee.
During 2024, the Group completed its IPO and relevant reorganisation
tosupport the new public company structure. This strategically important
stepwill provide wider access to capital markets for future strategic growth
and increasing awareness of the CVC brand. In addition, we closed the final
acquisition of CVC Secondary Partners and acquired CVC DIF to provide
further diversification of CVC’s revenue streams by adding strategies that
offeradditional product lines complementary to CVC’s existing strategies
andinvestor base. Efforts are now focused on integrating these businesses
(where appropriate) to ensure we are able to fully realise the objectives behind
the acquisitions; this includes ensuring we take advantage of our distribution
network and leverage operational economies of scale where possible.
Despite some market headwinds, we achieved our fundraising objectives
acrossmultiple strategies. This included commitments from both existing
andnew clients, cross selling existing clients into different CVC products, and
tapping into new pockets of capital such as private wealth, demonstrating our
ability to both retain and diversify our client base. However, fundraising has
been more challenging for some strategies.
Our approach to managing corporate sustainability is covered in detail inthe
Sustainability Report.
Annual investor meetings, and on-going interaction throughout the year, have
promoted client engagement across strategies. These interactions enable us to
continue deepening our client relationships, and to demonstrate our ability to
deliver consistent investment performance.
The risk
What are the risks?
How do we manage them?
2024 year in review
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
47
Principal risks and uncertainties
CVC Capital Partners plc Annual Report 2024
Investment
objectives
Risk Appetite:
Moderate
Trend over period:
Stable
– Fund performance could fail to meet client expectations.
This could result from poor investment decisions,
inadequate value creation plans, or due to the impact
ofgeopolitical or macroeconomic events. Investment
underperformance can manifest in several ways.
Afailure to meet financial targets such as capital growth
may impact our ability to raise new funds as clients
could seek alternative investments (fundraising risk is
described under business and strategic risks); capital
growth in our investments is the basis of non-recurring
revenue as CVC shares in profits when we exit
investments, as such lower capital growth equates
tolower profit share. Furthermore, the Group bases
forecasts for non-recurring revenue on estimated
investment holding periods, so any delay to exits
wouldalso delay collection of the associated revenue,
potentially leading to missed financial targets. The
impact of fund and investment performance on the
Group is a key factor analysed through the scenarios 2
and 3 of the viability statement on page 52 to 53.
– Inadequate deal due diligence by deal teams or third
party advisors could fail to identify risks that later result
in financial, legal or reputational damage.
– Deal teams may be unable to source quality investment
opportunities, either through a deterioration in the CVC
Network, or through unattractive market conditions.
Thiscoulddelay capital deployment affecting revenue
generation and future fundraising.
– CVC or its third party advisors could fail to identify
sustainability risks or deliver meaningful changes to
sustainability practices in our investee companies,
leading to financial impacts, reputational damage
oraffecting future fundraising.
– The Finance team works closely with the investment and
fundraising teams to ensure that assumptions driving financial
targets are carefully calibrated. In respect of non-recurring
revenue, haircuts are applied to budget assumptions to provide
headroom given they are less predictable than recurring
management fees and are subject to external market forces.
– CVC has a long-established, highly conservative investment
process which is underpinned by centralised investment
committees, led by highly experienced Managing Partners, and
which prioritise capital security and sustainable value creation.
All investments are subject to CVC’s well-developed due diligence
processes, which draw on both internal expertise and external
advisors to ensure potential risks and uncertainties are identified
and managed.
– CVC has in place robust portfolio monitoring processes that
provide an early indication of any underperformance, including
in-depth KPI monitoring, board representation, and regular
contact with management teams. Monitoring is supported by
the investment teams with oversight from highly experienced
Portfolio Committees that critically analyse portfolio
performance, and support early action planning in instances
ofperformance impairment.
– We have a natural hedge against economic cycles from our
diversified product offerings and further diversification through
broad geographic and industry exposure at the investment level,
generally with a preference for investments in non-cyclical,
defensive, sectors. CVC takes a long-term view, and has invested
through multiple economic and market cycles, including the
global financial crisis and COVID pandemic. Our clients trust
usto navigate periods of market volatility, and the nature of
private markets means we are able to be patient, particularly in
terms of when we access the market to make new investments,
or to sell existing portfolio investments.
– The Sustainability team work with deal teams to build and
trackmeaningful sustainability objectives in their value creation
plans.The team also help track and manage any sustainability
concerns identified during deal due diligence or through ongoing
monitoring of portfolio company operations via our proactive
ownership approach.
Our portfolio performance continues to be resilient across all strategies,
withconsistent value creation across Private Equity and Infrastructure through
the year.
Our investment portfolios continue to be resilient across all strategies, with
consistent value creation across our combined Private Equity and
Infrastructure portfolios, and all material CVC funds remain on or above plan.
We have seen an increase in deployment activity across Private Equity, Credit
and Secondaries and strong realisations.
Emerging risks
The global macroeconomic environment is showing signs of uncertainty.
Weare monitoring the impact of these macroeconomic risks on our
portfoliocompanies, including within their supply chains and distribution.
Weare actively supporting our portfolio companies to help them navigate
these uncertainties.
The risk
What are the risks?
How do we manage them?
2024 year in review
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
48
Principal risks and uncertainties continued
CVC Capital Partners plc Annual Report 2024
People
Risk Appetite: Low
Trend over period:
Stable
– Our people are our greatest asset. However, a
deterioration in CVC’s reputation, brand or financial
health could impact our ability to attract and retain
people with the right skills to achieve strategic or
investment objectives, or to manage the operations
ofthe business with due skill and diligence.
– Whilst we have robust recruitment and screening
processes, andplace great emphasis on culture, the
actions of individual employees could fail to meet CVC
standards or values. This could lead to reputational
damage or an inhospitable workingenvironment.
– The People team is responsible for helping attract and retain
thebest employees.
– By investing in continuous learning and development,
weensureour people are at the forefront of industry trends
andadvancements.
– We also offer mentoring programmes to all employees,
andencourage and support ongoing professional and
soft-skillstraining.
– Regular employee feedback through appraisals, including annual
‘360feedback’ reviews, ensures we identify and act on
development needs quickly and effectively.
– We prioritise creating an inclusive and supportive workplace
culture. Our goal is to foster an environment where every
employee feels valued and can contribute their best work.
– For information on how we engage with our people, please see
the stakeholder engagement section onpage 78.
Headcount increased, as a result of acquisitions and as we grew our
businessoperations teams. This included establishing an office in Cape Town
as a business operations hub.
A key challenge as we move forward through these periods of growth
ismaintaining the CVC culture that has made us successful to date. We aim
tocarefully manage the integration of new entities or locations to ensure
employees are aligned to CVC values and culture, including through senior
leadership spending time with various teams across the CVC Network,
relocating key employees to new locations, and encouraging global
connectivity through regular leadership touchpoints and townhalls.
We are also acutely focused on supporting the required behavioural change
that flows from enhancing and formalising our governance and controls
structure, as described under the operational principal risk.
Emerging risk
Significant legislative and policy changes in labour law are on the horizon
foranumber of our key jurisdictions, including the UK, the EU and the US.
Wecontinue to monitor any changes closely to understand the potential
impacts to our people strategy and approach.
The risk
What are the risks?
How do we manage them?
2024 year in review
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
49
Principal risks and uncertainties continued
CVC Capital Partners plc Annual Report 2024
Legal and
regulatory
Risk Appetite: Low
Trend over period:
Stable
– Inadequate internal processes for monitoring and
managing theregulatory environment could result
inafailure to identify orcomply with regulatory
obligations or expectations, leading toregulatory
censure, fines or restrictions on activities. A lack
ofunderstanding of regulatory requirements or
regulators’ expectations could result in a failure to
obtainor maintain requisite permissions for activities
conducted in different jurisdictions.
– CVC could fail to manage its legal affairs in a way
thatsufficiently protects from disputes, leading to
reputational damage or financial loss.
– We operate in a large number of jurisdictions and our
corporate structure has inherent complexity. This could
lead to governmental agencies in our operating
jurisdictions forming differing views to CVC on matters
such as tax planning or financial arrangements such as
transfer pricing. Equally, CVC could fail to identify or
adhere to local tax requirements given the number of
jurisdictions. These risks could lead to regulatory censure,
fines or unexpected tax liabilities.
– Our specialist legal, compliance and tax teams, organised to
support the business. During 2024, we hired a new Chief Legal
and Compliance Officer to develop maturity and integration of
the legal, risk and compliance functions across the Group.
– In addition to established compliance monitoring, we undertake
regular horizon scanning, both internally and with external
advice, to identify new requirements or amendments to
existingrequirements.
Private markets activities have come under increasing focus due to tightening
of financial services regulation on the industry. Corporate transparency and
an increased focus on transactions recordkeeping have been key themes
infinancial services regulation. We continue to monitor and manage these
areas closely.
Changes to legislation are under constant review. Key changes during the year
include new EU regulations covering Digital Operational Resilience (DORA),
and the EU AI Act requiring certain changes to governance and risk
management practices in order to demonstrate compliance in this
strategically beneficial area where we have several initiatives under
development and deployment.
Emerging risks
Changes to, and implementation of global tax rules are a key focus and in
particular the introduction by the OECD of a global tax regime, known as Pillar
Two. We have monitored these changes closely and sought expert advice to
ensure the tax provisions and disclosures are appropriate; however, the rules
and guidance continue to evolve and as a result the impact on CVC’s future
tax liabilities could change.
We have also seen an increase in routine tax enquiries and changes to
existingregimes that could impact on our corporate arrangements (such as
transfer pricing), fund structures and investments, and have a direct impact
on ouremployees, including the UK government’s amendments to tax of
carriedinterest.
The risk
What are the risks?
How do we manage them?
2024 year in review
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
50
Principal risks and uncertainties continued
CVC Capital Partners plc Annual Report 2024
Operational
Risk Appetite: Low
Trend over period:
Improving
– The Group could fail to design or operate an effective
control environment. This increases the risk of errors and
omissions in operational processes, fraud, or other
operational failings.
– Our information security or cyber controls could fail to
protect information assets from internal or external
threats, leading to unnecessary risks to data
compliance, privacy and security.
– Inadequate oversight of third parties could result in
operational errors or disruption, increased risk profile,
orexcessive spend.
– Plans to manage disruption and ensure continuity of
critical processes and availability of infrastructure could
be ineffective.
– Operational infrastructure may not meet the
increasingdemands resulting from growth or
operational complexity, and this could affect strategic
objectives, product development or deployment and
operational performance.
– Our initiatives to leverage AI technologies to gain
operational efficiency and scale could increase the
likelihood of related risks occurring, such as the use
ofinaccurate information supporting decisions
(e.g.through hallucinations), maintenance of data
privacy/confidentiality, and reliance on third party
technologies (specifically given many providers and
vendors of AI tools are new, immature businesses).
– We have specialist risk management, information security, data
privacy and Internal Assurance teams who design, oversee and
audit operational risk and control frameworks.
– Our information security programme consists of an overarching
framework designed to deliver policies and control operations
consistent with international standards. This is supported by
anidentify and access management programme, security
operations capability, vulnerability management programmes
(including use of external penetration testing specialists), and a
global security awareness programme with mandatory training
for all employees. The broader technology environment includes
project and change management functions and protocols.
– Our third party risk management framework takes a risk-based
approach to overseeing key third parties to ensure there is
adequate due diligence undertaken and appropriate oversight
oftheir ongoing fitness and performance.
– Risk assessments are maintained to identify higher risk areas
ofthe business so that resources can be focused on ensuring
appropriate controls are in place or identifying gaps and
weaknesses that need control improvements. A centralised risk
event reporting process also supports this process. The risk
assessment programme is used to help inform the internal
auditplan.
– A new governance framework for AI has been established that
challenges both proposed use cases and technology solutions.
Akey feature of the framework is an enhanced risk assessment
that assesses risks within the use case, the technology, the
vendor, and the impact on and readiness of internal technology/
data infrastructure. Any control enhancements identified
through the risk assessment are included in a ‘path to green’ plan
that limits implementation stages until key controls are delivered.
In addition, we have provided comprehensive training to the
business on both the advantages and risks of using AI tools.
Priortobeing granted access to AI tools, relevant employees must
complete the training and attest to certain policies that have
beenupdated to include specific clauses designed to manage
AIrelated risks.
As noted in the ‘Risk management developments’ section, we have embarked
ona journey comprising several initiatives to enhance, formalise, and mature
ourgovernance and controls structures to reflect the needs of a publicly listed
organisation that continues to see increased growth and complexity alongside
amore public profile. We have focused on enhancing our operational control
environment in several areas, including:
– We are enhancing the risk assessment and operational resiliency programmes
to provide a deeper understanding of the design and effectiveness of business
controls and to ensure our critical processes have appropriate continuity plans.
This also helps identify efficiencies as we integrate our operational capabilities.
– We have invested in our third party governance and oversight structures,
including building a central third party risk management team and developing
existing technology to improve our oversight of third-party risks by ensuring
adequate risk-based due diligence and monitoring procedures are in place.
– The information security project has made significant progress in aligning
information security management systems to the global ISO 27001:2022
framework. We are investing in both people and technology to ensure our
information security posture is reflective of our public profile through
enhancing and standardising Group-wide policies and processes, embedding
a security aware culture through employee training, and centralising identity
and access management controls.
– As we use technologies such as AI to innovate and equip our teams with
thebest available tools, we introduce new risks into the business. We have
established a new AI governance framework to ensure the technologies
support efficiency, and we manage them in a safe and secure way,
incompliance with relevant regulations.
Whilst progress has been made in advancing these improvement programmes,
they will continue to be a key focus area into 2025. Thereafter, they will be under
ongoing review as part of a continuous improvement process in line with our
objective of delivering operational excellence.
Emerging risks
Key risks under review as we move into 2025 are ensuring we can provide the
operational capacity and capabilities needed to deliver the Group’s strategic
growth targets, including operational challenges relating to new product
features and investor pools.
AI will also continue to be an emerging risk area as the internal use case
proposals and technology develop alongside the external legal and
regulatorylandscape.
The risk
What are the risks?
How do we manage them?
2024 year in review
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Principal risks and uncertainties continued
CVC Capital Partners plc Annual Report 2024
Footnote – the risks underlined are risks relating to the Group’s business, industry and markets set out in section 1.1 of the Company’s prospectus.
Youcan find this at www.cvc.com/shareholders/ipo-documents.
Viability statement
Under the UK Corporate Governance Code, the Board must undertake an assessment of the prospects
andviability of the Group.
The Group’s future viability and prospects are supported by:
– a large proportion (over 80%) of management fees in 2025 to 2027 being from funds that are already active;
– a largely predictable cost base, with over 68% of it personnel expenses
1
related;
– a strong balance sheet, with adjusted cash and cash equivalents €533m as at 31December 2024; and
– optionality during stress events including reduced variable remuneration, reduced dividend payments and
the use of revolving credit facilities.
Assessment of prospects
The Group assesses its long-term prospects primarily by creating a strategic business plan, which it updates
regularly to take account of fund activity and expected returns, changes to fundraising expectations, and
updated cost forecasts.
Although the strategic business plan covers a substantially longer period, we selected the three-year period
toDecember 2027 for the viability statement as it broadly follows the deployment lifecycle of our Europe /
Americas funds and therefore is the period for which assumptions are most reliable due to the high visibility
ofearnings from fees and investment returns.
The strategic business plan reflects the Group’s strategy, including plans to scale existing strategies, develop
new products and build new investment strategies.
Key assumptions within the strategic business plan include:
– fundraising, which drives management fees and underpins the ability to earn carried interest and investment
returns from future funds;
– the amount and timing of fund returns and investment realisations, which drive income recognition and
cash flow from carried interestand investment in CVC’s funds; and
– progress against the current year’s budget, which underpins the strategic business plan, is monitored
throughout the year and is updated on a quarterly basis.
Assessment of viability
To provide this assessment, the Board must consider the principal risks that could affect the Group, which
weoutline on pages 47 to 51.
The specific risks likely to have the greatest impact on the performance, liquidity and solvency of the Group
inthe three-year period are:
– deterioration in fund performance; and
– liquidity issues driven by reduced exit activity.
A significant deterioration in fund performance means lower investment valuations and lower carry
recognition. This could have an adverse effect on the Group’s reputation and itsability to raise capital for
future funds. This in turn would reduce MFE, and the potential to earn carried interest and investment income
in the future. If such an event were sufficiently material, this could impact the Group’s ability to remain
compliant with its financial covenants under the terms of the existing private placement notes and revolving
credit facility.
Reduced exit activity across the Group’s investment strategies would reduce both carry distributions and
co-investment distributions from CVC fund investments. This could create liquidity constraints, impacting
ourability to fund our co-investment commitments.
The Board reviews the key risks regularly and considers the options available to mitigate these risks to ensure
the ongoing viability of the Group. The Group’s viability requires consideration of the capital and liquidity
required for regulatory capital and working capital purposes. The strategic business plan has undergone
stress-testing, which considers the impact of the Group’s key risks materialising over the three-year assessment
period. The stress scenarios applied to the three-year period are as follows:
Scenarios: Links to principal risks:
Scenario 1:
Deterioration in fund performance affecting fundraising
Business and strategy risk
Assumptions:
No further uplift in investment valuations.
No further uplift in carry recognition.
30% reduction in fundraising targets.
Scenario 2:
Liquidity issues
Investment objectives risk
Assumptions:
50% reduction in co-investment distributions.
100% reduction in carry distributions.
Mitigated by a 50% reduction to shareholder distributions and a 50%
reduction to performance fee compensation.
Scenario 3:
Combination of Scenario 1 and 2
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Viability statement
CVC Capital Partners plc Annual Report 2024
1. Pro forma personnel expenses for the year ended 31 December 2024 excluding exceptional costs but including performance fee
compensation. Total expenses excludes the change in fair value of the forward liability.
Having reviewed the results of the stress tests, the Board concluded that the Group would have sufficient
capital and liquid resources, and that there would be no breach of covenants in each of the respective
scenarios, subject to taking appropriate action to sustain the Group’s ongoing viability.
Appropriate controllable management actions include:
– reducing variable compensation costs (which represent c.35% of payroll costs);
– changing the timing of, or reducing the size of, the Group’s dividends; and
– using or extending debt facilities.
A stress event could potentially be more severe than those modelled. In this scenario, other actions are
available that may reduce the impact of more severe scenarios, but the Board has not specifically modelled
this as these scenarios are considered to be remote and, as such, the analysis would not be meaningful. In
place of this, the Group has produced a reverse stress test to identify circumstances under which the business
model becomes unviable. The most plausible of these is a severe macroeconomic shock that resultsinthe
write-down of the value of a significant number of investments held by the funds.
This would immediately affect fund performance and income from carried interest, performance fees, and
investment returns. However, even in severe stress scenarios, this is unlikely to have an immediate impact on
viability, given the long-term contractual nature of management fees. If the impact is more permanent, this
could affect the ability to exit fund investments and raise new funds, and this could in turn impact the Group
beyond the period covered in this viability assessment.
The reverse stress test determines the level of reduction to EBITDA to trigger a breach of the Group’s financial
covenants, in the absence of any management actions. Such a scenario is considered to be extremely remote,
as it requires forecast operating costs to increase by 17%, compounded annually over the three-year period
versus the strategic business plan at the same time as recognising no further uplift in investment valuations
orcarry recognition. While the occurrence of one or more of the principal risks has the potential to affect
future performance, none of them are considered likely, either individually or collectively, to give rise to
tradingdeterioration of the scale required by the reverse stress test to threaten the Group’s viability over
thethree-year period.
Conclusion
Based upon the assessment set out above, the Board has a current reasonable expectation that the Group will
be able to continue in operation, with adequate liquidity and capital, and meet its liabilities as they fall due
over a viability horizon of at least three years.
Going concern statement
In accordance with the UK Corporate Governance Code, the Board has a responsibility to evaluate whether
the Group has adequate resources to continue operating for the foreseeable future and for at least the next
12months from the signing of the financial statements.
Assessment of going concern
In carrying out their going concern assessment, the Board considered a wide range of information, taking into
account both the Company’s and the Group’s current performance and outlook, using information available
up to the date of the issue of the financial statements.
This included:
− the Group’s strategic business plan;
− the Group’s risk appetite and approach to managing risk; and
− the current financial position and resources of the Group.
Business model
As shown by the table below, a high proportion of the Group’s total revenue is made up of management fees,
which are under long-term fund management contracts. When considered together with a largely predictable
cost base, of which over 68% is personnel related
1
, the Group has a good level of visibility of income,
expenditure and future profitability when projected over the next 12 months and beyond.
Dec-24
Dec-23
MFE (€m) 780 557
Pro forma management fees as a % of total revenue (%) 88% 86%
MFE margin % 59% 52%
Pro forma personnel expenses as a % of total expenses
1
(%) 68% 66%
Key assumptions made in the forecasts that underpin the Board’s going concern assessment are set out above
within the viability statement.
Liquidity and resources
As at 31December 2024, the Group had a strong balance sheet with adjusted cash and cash equivalents of
€533m (Dec-23: €291m), and a €600m revolving credit facility (Dec-23: €600m). The Group’s liquidity position
is monitored frequently, to ensure that funding is always available to meet liabilities as they fall due. This
includes monitoring the amount and timing of all operating expenses and detailed forecasting on the value
and timing of drawdowns to and distributions from fund investments.
Stress testing
In making their assessment the Board has considered scenarios prepared in conjunction with the viability statement,
including lower returns from fund investments, which would impact income recognition and cash flow of the Group,
as well as a reverse stress test. The directors are satisfied that, even under these stressed scenarios, the Company
and the Group would remain a going concern and would not be in breach of any financial covenants.
Conclusion
The Board acknowledges its responsibilities in relation to the financial statements for the year to 31December
2024. After making their assessment of going concern for at least 12 months from the date of the approval of
the financial statements, the directors consider it appropriate to prepare the financial statements of the
Company and the Group on a going concern basis.
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Viability statement continued
CVC Capital Partners plc Annual Report 2024
1. Pro forma personnel expenses excludes exceptional costs but includes performance fee compensation. Total expenses excludes the
change in fair value of the forward liability.
Governance
Report
In this section:
Chair’s Letter 55
Compliance with the UK
CorporateGovernance Code
56
Board of directors 57
Corporate Governance structure 59
Board roles and responsibilities 60
Board activities 61
Nomination Committee Report 63
Audit Committee Report 65
Risk Committee Report 72
Remuneration Report 73
Stakeholder engagement and
section 172 statement
78
CVC Foundation 79
Shareholder information 81
Board Responsibility Statement 85
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CVC Capital Partners plc Annual Report 2024
Dear shareholder,
On behalf of the Board,
Iampleased to present our
firstGovernance Report as
apubliclylisted company.
IPO and establishing a public
companyBoard
2024 was an incredibly exciting year, as we launched
and completed our successful IPO in April, with the
Company being listed on Euronext Amsterdam. The
IPO was a significant undertaking for our leadership,
the project team and our advisers, and I would like
toextend my gratitude to them all for guiding us
through this new chapter in CVC’s history.
As we prepared to become a public company, the
Board underwent significant change to ensure it was
properly structured from a corporate governance
perspective, as well as to establish the appropriate
policies and procedures expected of a public
company. Together with our CEO, Rob Lucas,
andCFO, Fred Watt, we welcomed three new
independent non-executive directors to the Board:
Baroness Rona Fairhead, Dr Mark Machin and Carla
Smits-Nusteling. I am delighted that each of
themhas joined us, and their outside perspectives,
guidance and willingness to challenge constructively
have already proven invaluable in refining our
strategy and guiding the business in meeting
ourstrategic objectives.
You can find further details on the backgrounds,
skillsand experience of our Board members on
pages57 to 58.
Board focus
Throughout 2024, the Board established the key
routines and procedures typical of a public company
Board, to assist the Company in its transition to
public company life, as well as preparing for our
firstset of half-year and full-year results. As a Board,
our goal throughout this time has been to set a
cleartone from the top, acting responsibly in
decision-making, and in managing risk, to achieve
our strategic ambitions to ensure the long-term,
sustainable success of the business for all
ourstakeholders.
Governance
The Board will maintain the highest standards of
governance. To that end, upon listing on Euronext
Amsterdam, the Board decided it was appropriate
toadopt the 2018 UK Corporate Governance Code
(the Code) on a voluntary basis. This report explains
the key features of the Group’s governance
framework, its compliance with the Code, and
thekey activities of the Board and its Committees
since admission to Euronext Amsterdam. CVC’s
compliance with the Code is set out overleaf.
Stakeholder engagement
An important focus area for the Board is our
stakeholders and how we consider their interests
aspart of our decision-making. You can find an
overview of stakeholder engagement on page 78.
Annual General Meeting (AGM)
Finally, as we open the chapter of CVC as a public
company, I am delighted to confirm that the
Company’s first AGM will take place on Tuesday
20May 2025, and the notice, along with explanatory
notes, will be distributed to shareholders and be
available at www.cvc.com/shareholders/
shareholder-information/agm.
Rolly van Rappard
Chair
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Chairʼs Letter
CVC Capital Partners plc Annual Report 2024
The Company will maintain the highest standards
ofcorporate governance. From listing on Euronext
Amsterdam, other than as disclosed below, the
Company has applied the principles and complied
with the provisions set out in the UK Corporate
Governance Code (the Code).
The Code was published by the UK Financial
Reporting Council in July 2018
1
. It applies to
companies with a premium listing on the London
Stock Exchange and to accounting periods from
1January 2019. We have chosen to comply
voluntarily with its principles and provisions.
The only departure from the Code with respect
totheBoard from admission is setout below.
Provision 9 of the Code recommends the chair
should be independent on appointment. Rolly
doesnot meet the independence criteria as he is
aco-founder of CVC and a continuing employee
ofCVC Advisers Limited. The Company recognises
this does not comply with the recommendation of
the Code, but believes that, to ensure maximum
continuity in the Group’s transition from a private
group to a public company, as Chair of the Board,
Rolly provides stability and continuity due to his
detailed understanding and historical leadership
ofCVC’s business. The non-executive chair’s
responsibilities include leading the Board, ensuring
the effectiveness of the Board in all respects,
ensuring effective communication with shareholders,
setting the Board’s agenda and ensuring all directors
are encouraged to participate fully in the activities
anddecision-making processes of the Board.
The table on the right details where content
regarding the Code canbefound.
1. Board leadership and company purpose
1.1 Board of directors Board of directors 57-58
Board chair succession 62
Performance evaluation 62
1.2 Purpose, values and culture Our Approach 13
1.3 Resources and
controlframework
Our Approach 11-15
Our principal risks and
riskmanagement
43-51
Corporate governance structure
and division of responsibilities
59-60
1.4 Stakeholder engagement
andS172 Statement
Stakeholder engagement 78
1.5 Workforce policies
andpractices
Sustainability Report 86
Business integrity programmes 152
2. Division of responsibilities
2.1 Role of the chair Letter from the chair of
theBoard of directors
55
Corporate governance
structure and division
ofresponsibilities
59-60
Performance evaluation 62
2.2 Division of responsibilities Corporate governance
structure and division
ofresponsibilities
59-60
Composition of the Board 62
2.3 Role of the
non-executive director
Corporate governance
structure and division
ofresponsibilities
59-60
Board of directors 60
2.4 Board policies, process,
information, time
andresources
Duties of the Board 60
Board activities 61
Item Page
3. Composition, succession and evaluation
3.1 Appointments to the Board Board chair succession 63-64
Inclusion and Diversity 63-64
Recruitment and
electionprocedures
63-64
3.2 Board skills, experience
andknowledge
Composition of the Board 63-64
3.3 Board evaluation Performance evaluation 62
4. Audit, Risk and Internal Controls
4.1 Independence and
effectiveness of internal
andexternal auditors
Audit Committee Report 65-71
4.2 Fair, balanced and
understandable assessment
Audit Committee Report 70
4.3 Risk and internal controls Corporate governance structure
and division of responsibilities
59
Principal risks and
riskmanagement
47-52
5. Remuneration
5.1 Alignment to purpose, values
and long-term success
Remuneration Committee
Chair’s letter
73
Directors’ Remuneration Policy 74
5.2 Remuneration Policy Remuneration Committee
Chair’s letter
73
Directors’ Remuneration Policy 74
5.3 Independent judgement
anddiscretion
Remuneration Committee Report 73
Consideration of wider
workforce remuneration
77
Item Page
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Compliance with the UK Corporate Governance Code
CVC Capital Partners plc Annual Report 2024
1. With effect from 1 January 2025, CVC has adopted the 2024
UK Corporate Governance Code.
The directors who served
onthe Board from Admission
to 31December 2024 were
asfollows:
Committee membership key
Committee Chair Nomination
Audit Risk
Remuneration
Rolly van Rappard
Chair
Appointed to the Board: April 2024
Nationality: Dutch
Independent: No
Board Committee Membership:
Rolly van Rappard is the Non-Executive Chair of the
Board and an employee of CVC AdvisersLimited.
Heis a co-founder and former chairof CVC, having
joined in 1989.
Prior to joining CVC, Rolly worked for Citicorp in
corporate finance in London and Amsterdam. Rolly
holds an MA degree in Economics from Columbia
University, New York, United States, and an LLM
from the University of Utrecht, the Netherlands.
Rob Lucas
Chief Executive Officer
Appointed to the Board: April 2024
Nationality: British
Independent: No
Board Committee Membership: n/a
Rob Lucas is the Company’s Chief Executive Officer
and a Managing Partner of CVC, having previously
served as the co-chair of CVC’s Private Equity
Executive Committeefor Europe / Americas. He is
the lead Managing Partner of the Investment
Committee forCVC’s Europe / Americas and
Strategic Opportunities strategies.
He also oversees CVC’s Private Equity business in
theUK, Sports, Media and Entertainment investing
globally and Financial Services in Europe. Rob has
been with CVC since 1996, having trained as an
engineer and graduated from Imperial College,
London, England. Rob spent his early career with 3i.
Fred Watt
Chief Financial Officer
Appointed to the Board: April 2024
Nationality: British
Independent: No
Board Committee Membership: n/a
Fred Watt is the Company’s Chief Financial Officer
and a Managing Partner of CVC. Fred joined CVC
in2007 and, prior to joining CVC, he was Chief
Financial Officer of RBS from September 2000
untilFebruary 2006.
Prior to that, Fred was Finance Director of Wassall
plc. Fred is a member of the Institute of Chartered
Accountants of Scotland and was educated at
Caledonian University, Glasgow, Scotland.
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Board of directors
CVC Capital Partners plc Annual Report 2024
Baroness Rona Fairhead CBE
Senior Independent
Non-Executive Director
Appointed to the Board: April 2024
Nationality: British
Independent: Yes
Board Committee Membership:
Baroness Rona Fairhead CBE, is the Chair of RS
Group plc and a non-executive director of Oracle
Corporation. Rona previously served as Minister
ofState for Trade and Export Promotion at the
Department for International Trade from October
2017 to May 2019. Rona was Chair of the BBC Trust
from September 2014 to May 2017.
Prior to this, she was Chair and CEO of the Financial
Times Group from September 2006 to April 2013. She
also previously served as CFO of Pearson plc from
June 2002 to September 2006. Rona’s non-executive
roles included positions at HSBC Holdings plc and
PepsiCo. She has been a member of the House of
Lords since 2017. Rona holds a Master of Arts in
Lawfrom St Catharine’s College, University of
Cambridge, England and a Master of Business
Administration from Harvard Business School,
Boston, United States.
Dr Mark Machin
Independent
Non-Executive Director
Appointed to the Board: April 2024
Nationality: British
Independent: Yes
Board Committee Membership:
Dr Mark Machin is the Managing Partner of
IntrepidGrowth Partners. He is also Co-Founder
andVice Chair of Opto Investments. Mark is also
amember ofGIC’s International Advisory Board.
Mark previously served as President and CEO of
CPPInvestments from 2016 to 2021 and Head of
International from 2013-2016 and Head of Asia
from2012-2013.
He was formerly Chair of FCLT Global and a member
of the board of Sequoia Capital. He is a member
ofthe board of directors of the Atlantic Council. He
wasHead of Capital Markets, Financing Group and
Investment Banking Non-Japan Asia at Goldman
Sachs from 2000 until 2011. Mark holds a Bachelor
ofArts from Oriel College, University of Oxford,
England and a Bachelor of Medicine and Surgery
(BMBChir) from Downing College, University of
Cambridge, England.
Carla Smits-Nusteling
Independent
Non-Executive Director
Appointed to the Board: April 2024
Nationality: Dutch/Australian
Independent: Yes
Board Committee Membership:
Carla Smits-Nusteling is a non-executive director
andChair of the audit committee of Nokia and
anon-executive director of Stichting Continuiteit
AholdDelhaize (SCAD) Foundation.
She previously served as the non-executive Chair
ofTele2 AB, a non-executive director and Chair
ofthe audit committee of Allegro, member of the
Supervisory Board and Chair of the audit committee
of ASML and was the former Chief Financial Officer
of KPN and a former judge of the Enterprise Court
ofthe Amsterdam Court of Appeal. Carla holds
aMaster’s degree in Business Economics from
ErasmusUniversity Rotterdam, the Netherlands
andan Executive Master of Finance and Control
degree from the Vrije University Amsterdam,
theNetherlands.
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Board of directors continued
CVC Capital Partners plc Annual Report 2024
Over the last 40 years, the Group has achieved
success as a result of the corporate culture
developed by its senior team, and the talents and
efforts of the wider team. CVC has also developed
sophisticated techniques for analysing investment
opportunities and risks. The Board was mindful
oftheneed to maintain a performance-based,
entrepreneurial and meritocratic culture following
listing. To help achieve this, the Group has
maintained much of its existing governance
structure, including (i) regular meetings of the
Partner Board, (ii) each of the seven strategies
continuing to operate through their existing
Executive Committees, and (iii) investment
recommendationscontinuing to be made through
the investment committees operated by each of
theseven strategies.
Please see the information to the right, which sets
out the Corporate Governance structure flowing
down from the CVC Capital Partners plc Board
following Admission.
Other Board Committees
In addition, the Group has a Market Disclosure
Committee.
You can find terms of reference for each of the
Board’s Committees along with the matters
reservedfor the Board, on the Company’s website:
www.cvc.com/about/corporate-governance.
PLC Board
The Board is responsible for providing leadership on the Group’s purpose, values and general strategy and objectives, overseeing the Group’s culture, and promoting the alignment
of culture with the Group’s purpose, values and strategy. To assist the Board with its responsibilities, the Board has established the following Committees:
Nomination Committee Remuneration Committee Audit Committee Risk Committee
The Nomination Committee’s main
responsibilities include: (i) drawing up
selection criteria and appointment
procedures for the directors; (ii) periodically
assessing the size and composition of the
Board, and making a proposal for a
composition profile of the directors;
(iii)periodically assessing the functioning
ofindividual directors and the Board as a
whole, and reporting on this to the Board;
and (iv) making recommendations for
appointments and reappointments to the
Board, the other Committees and the
Partner Board.
The Remuneration Committee’s role is to
assist the Board with its responsibilities in
relation to directors’ remuneration, including
determining the Company’s remuneration
policy, and setting remuneration for the
chair, the executive directors and the Partner
Board. The Remuneration Committee gives
due regard to (amongst other things) the
provisions and recommendations of the UK
Corporate Governance Code when designing
the remuneration policy, to ensure a formal
and transparent procedure for developing
policy is in place. The Board determines the
remuneration of the non-executive directors.
The Audit Committee’s role is to assist the
Board in discharging its responsibilities in
relation to financial reporting, including
reviewing the Group’s annual financial
statements and accounting policies, internal
financial controls and external audit
controls, reviewing and monitoring the scope
of the annual audit and the extent of the
non-audit work undertaken by external
auditors including their on-going
independence, advising on the appointment
of external auditors and reviewing the
effectiveness of external and internal audit
and the internal financial controls within the
Group, with due regard to listing and
regulatory requirements.
The Risk Committee’s role is to assist the
Board with its responsibilities regarding
thegovernance of risk through formal
processes, determination of the Group’s risk
appetite, reviewing and monitoring the
policies and the overall process for
identifying and assessing business risks,
overseeing and advising the Board
ontheeffectiveness of the Group’s
riskmanagement and internal
controlframework.
For more information, please see the
Committee Report on pages 63 to 64
For more information, please see the
Committee Report on pages 73 to 77
For more information, please see the
Committee Report on pages 65 to 71
For more information, please see the
Committee Report on page 72
Partner Board
The management of the Group is supported by a committee of Managing Partners (the Partner Board) to whom decision-making has been delegated by the Board, comprising of the chief
executive officer, the chief financial officer and at any one time between 10 and 25 other Managing Partners. The chief executive officer is the chair of the Partner Board. The Partner Board
has responsibility for (i) making and implementing operational decisions on behalf of the Company and (ii) making recommendations to the Board on certain matters reserved for the Board.
The Partner Board may delegate its powers as it sees fit. The Group’s management structure has been designed to support the Board and senior management’s decision-making
responsibilities, while using the depth and quality of experience that the Company believes has contributed significantly to the Group’s success.
Executive Committees for Strategies
Private Equity
Global Operations
ExecutiveCommittee
Sustainability
Committee
Group Risk Committee
Europe /
Americas
Asia Growth StratOps
Diversity, Equity & Inclusion AI Governance
Credit Secondaries Infrastructure
InfoSec & Data
PrivacyForum
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Corporate Governance structure
CVC Capital Partners plc Annual Report 2024
The Board is collectively responsible for the
management, direction and performance of the
Company, to promote its long-term sustainable
success, while making sure there is a prudent
framework of controls within the business that
ensures the generation of returns to shareholders,
while taking into account its major stakeholders
and wider society.
Chair
Rolly van Rappard
1. leads the Board and is responsible for its overall
effectiveness in directing CVC;
2. shapes the culture in the boardroom, in
particular by promoting openness and debate,
while demonstrating objective judgement;
3. sets a board agenda primarily focused on
strategy, performance, value creation, culture,
stakeholders and accountability, ensuring
theBoard considers issues relevant to these
areas; and
4. leads the overall performance review of the
Board, its Committees and directors.
Chief Executive Officer
Rob Lucas
1. manages the Company on a day-to-day basis,
within the authority delegated by the Board
orthe Partner Board;
2. develops the strategy, plans, commercial
andother objectives, and makes proposals
tothe Board and the Partner Board; and
3. implements and delivers the approved
strategy, plans and objectives agreed by
theBoard.
Chief Financial Officer
Fred Watt
1. provides strategic financial leadership;
2. leads the Group’s finance function on a
day-to-day basis;
3. in conjunction with the chief executive officer,
develops strategies for consideration by the
Board or the Partner Board; and
4. leads the annual budget process for approval
by theBoard.
Senior Independent Director
Baroness Rona Fairhead
The senior independent director acts as a sounding
board forthe chair, supporting the chair in
achieving objectives, and serves as an intermediary
for the other directors and shareholders. The senior
independent director also leads theannual
performance evaluation of the chair.
Non-executive directors
1. bring special skills and experience to the Board;
2. constructively challenge proposals and
holdexecutive directors accountable to
agreedobjectives;
3. monitor the delivery of the strategy approved
by theBoard;
4. have a key role in the appointment and
removal of executive directors; and
5. monitor the integrity and effectiveness of the
Group’s financial reporting and systems of
internal control and risk management.
Company Secretary
Fiona Evans
1. supports the chair of the Board and the non-
executive directors with their responsibilities;
2. advises on regulatory, compliance and
corporate governance matters; and
3. maintains accurate books and records for the
Group, including the preparation of minutes
ofBoard and Committee meetings.
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Board roles and responsibilities
CVC Capital Partners plc Annual Report 2024
The key aspects of executive and non-executive responsibilities are set out below:
Since the IPO and during the rest of 2024, the Board met three times in Jersey. The attendance at Board and
Committee meetings by individual directors, along with the number of Board and Committee meetings they
were entitled to attend, is set out below:
Name Board Audit Nomination Remuneration Risk
Rolly van Rappard 3/3 n/a 3/3 n/a n/a
Rob Lucas 3/3 n/a n/a n/a n/a
Fred Watt 3/3 n/a n/a n/a n/a
Baroness Rona Fairhead 3/3 3/3 3/3 3/3 3/3
Dr Mark Machin 3/3 3/3 3/3 3/3 3/3
Carla Smits-Nusteling 3/3 3/3 3/3 3/3 3/3
During the period from Admission until the date of this report, the Board focused on the following keyareas:
– Regular updates on the performance of the business.
– Financial statements, announcements and other financial reporting matters, including the approval
oftheannual report and half-year report.
– Strategy and budget.
– Sustainability strategy.
– Shareholder feedback and investor relations reports.
– Reports from legal, compliance and risk, with regulatory updates.
– Presentations from the business, including information regarding relevant stakeholders.
– Consideration of arrangements for the AGM, including the Notice of AGM.
– Consideration as regards the payment of a dividend.
– Board/Committee calendar and agenda planning.
– Review of the Board and Committee terms of reference.
– Corporate governance and regulatory updates.
When reviewing and making decisions, the Board takes into account the relevant key stakeholders relating to
those decisions. In addition, the Board and Committee meetings have standing agenda items, which ensure all
aspects of the business and regulatory requirements are given due consideration as appropriate. After most
Board meetings, the chair holds a separate session with the non-executive directors.
Stakeholder engagement
The Board believes it has a strong approach to sustainable value creation, working with the best management
teams to improve operational efficiency and reinvest for growth. Furthermore, the Board aims to maximise
returns by creating sustainable value for all its stakeholders. It does this by prioritising and managing material
sustainability factors as an important part of the value creation and risk mitigation approach, enabling more
informed decisions to build better businesses. The Board’s approach to engagement with the Company’s
stakeholders is set out in the Company’s statement on page 78.
Culture
The Group has established an entrepreneurial, performance-driven culture across the company, which is
underpinned by (i) the CVC Network and the depth and stability of the CVC team, (ii) the Group’s distinctive
incentivisation model of deal team carry within its private equity business, and (iii) an ownership mindset that
issupported by a broad employee shareholding. The Board recognises that the overall culture and mindset
hasbeen highly important to CVC’s historical success and is central to the Group’s strategy going forward.
Theability to attract and retain talent is supported by several factors, including:
– a well-defined recruitment process with a strong emphasis on diversity, equity and inclusion that aims
toidentify entrepreneurial talent with a performance-driven mindset;
– a culture defined by its values of being entrepreneurial, honest, balanced and inclusive;
– a competitive, transparent and long-term incentivisation model; and
– a focus on development opportunities through cultivating technical abilities, training for industry
qualifications, coaching and mentoring.
The Board recognises that a strong culture and engaged employees are fundamental to its ability to create
long-term value, and monitors the culture through regular updates on people, the attendance of senior
management at Board meetings and dinners, visiting offices and attending employee and investor events.
TheBoard recognises the importance of retaining the strong culture developed to date, and this ensures that
the Board is fully aware of the culture operating within the business. Further information on the Group’s culture
and values can be found on page 13.
Conflicts of interest
The Company’s Articles of Association provide (among other things) the rules and measures that apply to the
directors in furtherance of the conflicts of interest requirements of Jersey law and the Code. All directors must
avoid direct or indirect conflicts of interest with the Company, but such conflicts of interest may, in certain
circumstances, be authorised by the other directors. Such authorisation will only be effective if the quorum of
the meeting that considers the matter is met without counting the conflicted director, and if the authorising
resolution is passed without counting the conflicted director’s vote.
The Board has approved the Director Conflict of Interest Policy, which is reviewed annually. A register
ofdeclared interests is kept by the Group Company Secretary.
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Board activities
CVC Capital Partners plc Annual Report 2024
Workforce engagement
After discussion, the Board decided to adopt an alternative method of engagement than those set out in
Provision 5 of the Code due to the global nature and the size of the business. The Board felt that an alternative
arrangement would be best suited for engaging with the Company’s workforce, whereby all directors, executive
and non-executive, would be involved in meeting employees and gaining insights into the Group’s culture and
people. As such, during the year, the Board met colleagues from the business, with various leaders and SMEs
from across CVC presenting on their areas of expertise at Board meetings. They have also met many other
colleagues, visiting sites during the year, with the non-executive directors visiting other office locations while
travelling, so allowing them to better gauge the Group’s culture globally. The feedback from such visits has been
given to the Board and the non-executive directors were impressed with the engagement and motivation shown
by our colleagues and the interesting insights into the challenges and opportunities faced by the business in
different regions. The Board continues to believe that this methodology remains effective as it enables us, the
Board, to understand the views across CVC to assist as part of our decision-making process. Further information
can be found in the stakeholder engagement and s.172 statement on page 78.
Key governance matters
Board composition
As at 31December 2024 and as at the date of this report, the Board comprised the non-executive chair, two
executive directors and three independent non-executive directors (which includes the senior independent
director). The independent non-executive directors were appointed to the Board in April 2024 and you can find
biographies for all directors on pages 57 to 58. All of the directors served on the Board throughout the year
ended 31December 2024 from Admission.
Board succession and diversity
Board succession planning focuses on ensuring the Board has the right mix of skills and experience for the
Board to be effective. All new appointments are based on merit, keeping in mind that to achieve the
Company’s strategic ambitions, there is a need for a high-performing Board that is diverse and inclusive.
Withthis in mind, key details of the Board’s policy on diversity and inclusion is set out in the Nomination
Committee Report on pages 63 to 64.
Appointment and election of Board members
All directors have employment contracts or letters of appointment, and the details of their terms are set out in
the directors’ Remuneration Report. The chair devotes substantially all of his time to the Company and Group,
and the non-executive directors are expected to devote the necessary time to perform their duties properly.
The committee chairs may be required to spend additional time to this to carry out their extra responsibilities.
Anyexternal appointments require prior Board approval.
The Board considers all directors to be effective and fully committed to their roles, and to have sufficient
timeto perform their duties. The Board has delegated to the Nomination Committee the responsibility for
monitoring the non-executive directors’ significant external roles and commitments, to ensure they remain
able to devote an appropriate amount of time to their roles at the Company. In line with the recommendation
of the Code, all directors will be offering themselves for re-election at the Company’s forthcoming AGM.
Board induction and training
The non-executive directors each received a comprehensive induction prior to joining the Board. The key
aspects of the induction included:
– various sessions with the chair and CEO covering history, vision and mission of CVC, internal and external
relationships and strategic planning;
– sessions with the executive directors on the business and current issues; and
– meetings with various key members of management and external advisors.
In addition to the above, each director also received a session on certain aspects related to being a director
ofa public company. The key topics covered were: market abuse regulation, corporate governance, financial
reporting, takeover rules and directors’ duties in a listed environment.
The directors have continuous access to senior management expertise and receive regular detailed
presentations on key areas of the business. In addition, directors have access to the advice and services of
theCompany Secretary and independent and professional advice at the Company’s expense, should they
determine this necessary to discharge their duties.
Board evaluation and effectiveness
As the Company listed on Euronext only at the end of April 2024, it has not yet conducted a formal Board,
director and committee performance evaluation. The Company Secretary will facilitate the annual internal
performance evaluation at the end of March 2025, when the Board and the Committees have had a full year
of operations upon which to reflect and the senior independent director will appraise the chair’s performance.
The process, outcomes and action plan resulting from entire evaluation will be reported in the Company’s
Annual Report and Accounts for the year ending 31December 2025. As per the Code, the chair will
commission an externally facilitated Board performance review in due course.
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62
Board activities continued
CVC Capital Partners plc Annual Report 2024
Dear shareholder,
As Nomination Committee
Chair, I am pleased to present
the Nomination Committee’s
first report, for the year ended
31December 2024.
Committee Gender Breakdown
2
2
ò Men ò Women
Main responsibilities
The role of the Committee is to establish formal,
rigorous and transparent procedures for the
appointment of directors to the Board and senior
management of the Company. In addition, it is
responsible for reviewing the succession plans for the
executive and non-executive directors. This involves:
– the regular review of the structure, size and
composition of the Board to ensure it has the
proper balance of skills, experience, independence
and diversity;
– succession planning for the Board and senior
management, with a view to addressing the
leadership needs of the Company to ensure it
cancontinue to compete effectively in the market
place; and
– identifying and nominating candidates to fill Board
vacancies, including managing the search process.
The Committee has formal terms of reference that
you can view on the Company’s website at
www.cvc.com/about/corporate-governance.
Membership
The Committee comprises myself as chair and three
independent non-executive directors: Baroness Rona
Fairhead, Dr Mark Machin and Carla Smits-
Nusteling. The Group’s Company Secretary, Fiona
Evans, acts as secretary to the Committee.
Areas of focus in 2024
The Committee was established with effect from
Admission to listing and trading of the Company
shares on Euronext Amsterdam in April 2024. Since
the Company has listed, it has held three Nomination
Committee meetings during 2024, with the
attendance set out below. During the year, the
Committee spent time on succession planning for the
Board and senior management,withthe input of the
executive directors.The Board is also aiming
toappoint a fourth non-executive director, and
theCommittee has been engaged on progressing the
appointment. Egon Zehnder, an external search
agency, has been appointed to assist with the search
and has no other connection to the Company
orindividual directors. Egon Zehnder was also
appointed to undertake the search for the current
non-executive directors prior to Admission.
Diversity and Board appointments
CVC values diversity of thought and experience,
notonly because greater diversity leads to
betterdecision-making and superior investment
performance, but it also provides for a great place
towork. The Board diversity and inclusion policy
(thePolicy) applies to the composition of the Board
of directors of the Company (the Board) and
complements the CVC global diversity policy that
applies more generally to employees of the Group,
being the Company and its subsidiary and controlled
undertakings (excluding funds and portfolio
companies). The Policy was approved by the Board
on 12 April 2024 and is available on our website at
www.cvc.com/about/corporate-governance.
Further information on the implementation of the
Policy and the role of the Committee together with
further information on theCVC global diversity
policy, can be found in theSustainability Report
onpage 140.
The Board acknowledges the benefits of greater
Board diversity, including but not limited to gender
diversity, and remains committed to ensuring
theCompany’s directors bring a wide range of
skills,knowledge, experience, background and
perspectives. We make all appointments on merit,
subject toobjective criteria, in the context of the
overall balance of skills and backgrounds the Board
needs to remain effective.
The targets in the Policy are:
A. at least one-third of the seats of the Board of
directors to be held by women and at least one-
third by men; and
B. one woman in the chair, senior independent
director, CEO or CFO role.
Highlights
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63
Nomination Committee Report
CVC Capital Partners plc Annual Report 2024
Committee attendance
Members Attendance
Rolly Van Rappard (Chair) 3/3
Baroness Rona Fairhead 3/3
Dr Mark Machin 3/3
Carla Smits-Nusteling 3/3
Board Gender Breakdown
66.6%
33.3%
100%
33.3%
66.6%
ò Men ò Women
As at the date of this Report, we have met the
targets and the Board comprises the chair, two
executive directors and three non-executive
directors, of whom all are independent. Baroness
Rona Fairhead is the Senior Independent Director.
The Board identifies key skills and experience
thatthey feel would enhance the effectiveness
ofthedecision making at board level. As such,
appointments to the Board are based on a clear brief
to ensure that the right candidate is found and that
they are the right fit in terms of our organisational
culture, and are able tocontribute to the successful
running of the organisation as part of a strong,
accessible and diverse Board and who act as
custodians of theGroup.
As per the definition of senior management
withinthe UK Corporate Governance Code, as at
31December 2024, the percentage of men was 89%
and for women was 11%. As regards their direct
reports, the percentage of men was 77% and for
women was 23%.
Further information on diversity across CVC can be
found in the Sustainability Report on pages 139 to 150,
where we have set out clear actions and outcomes for
2024 and 2025, and this includes information on the
diversity of direct reports reporting into senior
management, the Partner Board.
AGM and director re-election
In line with the recommendations of the Code, all
directors will be standing for re-election at the AGM,
which is taking place on 20May 2025. The Board has
recommended that each director be reappointed at
the AGM. In deciding to make this recommendation,
the Board acted on the advice of the Nomination
Committee. The Board is satisfied that the directors
continue to devote sufficient time to the Company
to enable them to discharge their duties in full, and
that they each continue to demonstrate a high
degree of commitment to their role. Further
information isoutlined in the Notice of AGM which
can be found here: www.cvc.com/shareholders/
shareholder-information/agm.
Rolly van Rappard
Chair
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Nomination Committee Report continued
CVC Capital Partners plc Annual Report 2024
Board
Executive
directors
Non-
executive
directors
Dear shareholder,
As Audit Committee Chair,
Iam pleased to present our
first Audit Committee report
asa listed company, for the
year ended 31December 2024.
Thisreport outlines how the
Committee discharged the
responsibilities delegated
toitby the Board since IPO,
and the key areas of focus
during that time.
Committee Gender Breakdown
1
2
ò Men ò Women
The Committee fulfils a vital role in the Company’s
governance framework, and is responsible for
discharging governance responsibilities for audit
andinternal financial control, to assist the Board
infulfilling its responsibilities regarding all matters
related to external and internal financial reporting.
In the lead up to IPO, there was significant work
completed to ensure the Company has the
appropriate corporate governance foundations as
apublicly listed company, including rigorous policies
and procedures for the assessment of risk, internal
control, and financial accounting and reporting.
TheCommittee’s key areas of responsibility are set
overleaf and you can find the Committee’s terms
ofreference on the Company’s website at:
www.cvc.com/about/corporate-governance.
Membership
The Committee comprises myself as chair and two
independent non-executive directors, Baroness Rona
Fairhead and Dr Mark Machin. All Committee
members have past employment experience in either
finance or accounting roles. As such, for the purposes
of complying with Provision 24 of the Code, the
Board is satisfied that the Committee has members
with recent and relevant financial experience.
TheGroup’s Company Secretary, Fiona Evans,
actsas secretary to the Committee.
Areas of focus in 2024
Details of the key activities of the Committee
undertaken since IPO are set out in this report.
Theprimary areas of focus have been:
– review of the Half-Year report, and the work
completed ahead of publication;
– preparation for reporting in line with the CSRD
including consideration of the double materiality
assessment, targets and baseline reporting,
theassurance process, and key steps to
attainingassurance;
– reviewing various aspects of the Group’s systems
ofinternal financial control and risk management;
– review of significant accounting policies and
areasof accounting estimation and judgement
(seenote 3 on page 193);
– preparation for 2024 year-end reporting, including
a review of the year-end audit plan provided by the
Company’s external auditor; and
– review and approval of the policy for the provision
of non-audit services from the Company’s external
auditors.
In March 2025, the Committee reviewed the
Company’s Annual Report and Accounts for the year
ended 31 December 2024 along with the financial
results announcement.
I would like to thank my fellow Committee members
for their contributions during the year and I look
forward to continuing our work in 2025.
Carla Smits-Nusteling
Chair of the
Audit Committee
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Audit Committee Report
CVC Capital Partners plc Annual Report 2024
Committee attendance
Members Attendance
Carla Smits-Nusteling (Chair) 3/3
Baroness Rona Fairhead 3/3
Dr Mark Machin 3/3
This report describes the
workand activities of the
Committee as per clause 24
ofthe Financial Reporting
Council’s Audit Committees
and the External Audit:
Minimum Standard.
Committee responsibilities
The principal responsibilities of the Committee can
be summarised as follows:
Financial reporting
– Monitoring the integrity of the Company’s annual
and half-yearly financial statements, trading
statements and any other formal announcements
relating to the Company’s financial performance.
– Monitoring, reviewing and reporting to the Board
on significant financial reporting issues and
judgements made in connection with the
preparation of the Company’s financial statements
and any other formal announcements relating
tothe Company’s financial performance.
– Reviewing and challenging, where necessary,
theapplication of significant accounting policies,
whether the Company has adopted appropriate
accounting policies and, where necessary, making
appropriate estimates and judgements.
External audit
– Overseeing the relationship with the external
auditor and reviewing the effectiveness of the
external audit process.
– Making recommendations to the Board on the
appointment, re-appointment, resignation of and
removal of the external auditor.
– Developing and implementing policy on the
engagement of the external auditor to supply non-
audit services.
– Oversight of the independence of the external
auditor and reviewing the annual audit fee.
Internal audit
– Reviewing and approving the role and mandate
ofthe Company’s internal audit function and
monitoring and reviewing the effectiveness of the
function’s work.
– Reviewing and approving the annual internal audit
plan and internal audit charter.
– Approving the appointment and removal of the
head of the internal audit function.
Committee activities in 2024
In the period from Admission to the period end,
theCommittee met on three occasions and the
keyactivities were:
– a review of key accounting estimates and
judgements for the period ended 30 June 2024,
and receiving an update on significant accounting
policies and accounting standards for the 2024
year end;
– a review of the half-year report;
– a review of the work undertaken by the Company’s
external auditor, Deloitte, for the half year, along
with receiving an update on the scope of activities
for the year end;
– receiving Deloitte’s confirmation of independence
for both the 2024 half year and for the year ended
31 December 2024;
– a review of Deloitte’s audit engagement letter
andproposed fees for the year-end audit;
– a review of the policy for the provision of non-audit
services from the Company’s external auditors;
– a review of the adequacy and effectiveness of the
Company’s internal financial controls;
– a review of the policy relating to the recruitment
ofemployees or former employees of
externalauditors;
– receiving various updates and presentations from
the Global Head of Internal Assurance on work
completed and forthcoming plans;
– receiving updates on the work plan for reporting
inline with the CSRD including receiving a report
on the external auditors role in providing limited
assurance relating to this;
– reviewing the Group’s statement on tax
strategy;and
– in 2025, a review of the 2024 Annual Report and
Accounts and key accounting estimates and
judgements for the year ended 31 December 2024.
At the invitation of the Committee, the Company’s
CFO, members of the Finance team, the Head of
Sustainability, the Global Head of Internal Assurance
and representatives of the Group’s external auditor
Deloitte, routinely attended Committee meetings
during 2024.
Areas of significant focus
In preparing the financial statements for the
yearend, there were a number of areas that the
Committee focused on. We discussed these areas
with the external auditor to ensure the Group
reached appropriate conclusions and has provided
the required level of disclosure. As such, the
significant matters considered by the Committee for
the Annual Report and Accounts are set out overleaf.
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Audit Committee Report continued
CVC Capital Partners plc Annual Report 2024
Pre-IPO Reorganisation and related parties
Ahead of the IPO the Company underwent a Pre-IPO Reorganisation which resulted in the acquisition
by the Company of the Advisory Group on 1 January 2024, CVC Credit on 15 April 2024, and CVC
Management Holdings II Limited on 29 April 2024. As a result the Group’s financial statements include
areas of complex accounting.
The Committee reviewed the material accounting policies related to the Pre-IPO Reorganisation, as well as key
judgements involved in the merger and acquisition accounting, and related disclosures, including related party
transaction disclosures.
Having challenged the methodology applied by management, the Committee was satisfied with the approach taken
as at 31 December 2024 and the disclosures made within the financial statements.
Pro forma information and APMs
Pro forma financial information has been presented to reflect the Group’s results as if the Pre-IPO
Reorganisation and acquisition of CVC DIF had been completed at the start of the comparative period.
The Group also uses a number of APMs, including:
– Adjusted pro forma total revenue
– Adjusted pro forma EBITDA
– Adjusted pro forma profit after income tax
– Pro forma MFE
– Pro forma MFE margin
– Pro forma PRE
– Adjusted cash and cash equivalents
– Adjusted financial assets at fair value through profit or loss
– Adjusted basic and diluted EPS
Adjustments primarily relate to deducting amounts attributable to fund non-controlling interests, as
well as acquisition-related and other items that do not reflect the underlying operating performance
of thebusiness. The Group has fund non-controlling interests as a result of conclusions reached when
assessing whether the Group controls certain partnerships and credit vehicles, through which it makes
its general partner commitment to each fund and subsequently holds investments, in accordance with
IFRS 10.
Reconciliations can be found on pages 249 to 255.
The Committee discussed the use of pro forma financial information and APMs with the executive directors,
considering their appropriateness.
The Committee was satisfied that the pro forma financial information and APMs selected provide useful information to
stakeholders, are clearly labelled and defined, and are balanced versus IFRS measures.
In addition the Committee considered the complexity that the accounting treatment around the Group’s IFRS 10
conclusions, the Pre-IPO Reorganisation and the acquisition of CVC DIF adds to the interpretation of the Group’s
results. Management’s proposal to use pro forma information and APMs provides helpful assistance for readers with
their interpretation of the Group’s results.
Revenue recognition
The recognition and measurement of carried interest and performance fees involves estimates and
judgement. Refer to note 3 within the consolidated financial statements for further details.
The Committee reviewed the recognition of carried interest and performance fees, in particular, judgements applied in
determining whether the Group controls carried interest entities, as well as discounts applied to carried interest revenue.
The accounting policy for and related disclosure requirements of IFRS 15 that have been presented in the Annual Report
and Accounts were also reviewed in September 2024 and March 2025.
The Committee concluded it was satisfied that revenue had been properly recognised in the financial statements.
Matter
How it has been addressed
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Audit Committee Report continued
CVC Capital Partners plc Annual Report 2024
Valuation of financial assets at fair value through profit or loss
The Group’s co-investments represent a significant portion of the consolidated balance sheet. The fair
value measurement of most of these investments relies on unobservable inputs, and the estimation of
these unobservable inputs is considered a key source of estimation uncertainty.
The Committee reviewed the methodologies used to value the Group’s investments, the process and governance over
the valuations and the outcome of that process as at 31 December 2024.
Having challenged the approach to valuation taken by management, the Committee was satisfied with the approach
taken as at 31 December 2024 and the disclosures made within the financial statements.
Consolidation of investments in investment vehicles
A significant judgement for the Group is whether the Group controls the limited partnerships and
creditvehicles, through which it makes its general partner commitment to each fund and manages
andholds investments in accordance with IFRS 10. Control is determined by the directors’ assessment
ofdecision-making authority, rights held by other parties, remuneration and exposure to variable returns.
Refer to note 3 within the consolidated financial statements for further details.
The Committee reviewed management’s IFRS 10 assessments of newly acquired entities in the period that were
material to the Group.
Having challenged the conclusions, the Committee was satisfied with the assessments as at 31 December 2024 and
the disclosures made within the financial statements.
DIF acquisition
On 1 July 2024, the Group completed its initial acquisition of 60% of CVC DIF which involved areas of
complex accounting and key sources of estimation uncertainty including the valuation of the forward
liability which relates to the Group’s obligation to acquire the remaining 40% interest in CVC DIF.
The Committee reviewed methodologies used to measure the fair value of identifiable assets and assumed liabilities at
the acquisition date (including goodwill and intangible assets), as well as the forward liability which represents the
Group’s obligation to acquire the remaining 40% interest in CVC DIF.
Having challenged the approach to valuation taken by management, the Committee was satisfied with the approach
taken as at 31 December 2024 and the disclosures made within the financial statements.
Taxation
The Group operates in multiple jurisdictions with varying tax rates and rules. Tax rules are subject to
change and the interpretation of the tax rules in each jurisdiction may change over time, in particular
inareas such as transfer pricing. The recognition and measurement of any tax (including deferred tax)
is an ongoing area of focus.
In December 2021, the OECD released Pillar Two model rules intended to ensure large multinational
enterprises pay a minimum level of tax in each of the jurisdictions in which they operate (the GloBE
Rules). The GloBE Rules were implemented in EU law in 2022 under which most EU member states
implemented the Pillar Two Directive in their domestic law effective after 31 December 2023, with
certain jurisdictions delaying until 2025. Jersey has implemented a new minimum corporate income tax
(MCIT) law effective 1 January 2025, which will result in the taxable profits of the Group’s Jersey entities
being subject to a 15% tax rate for the year ended 31 December 2025. Deferred tax asset considerations
in relation to historic tax losses that can be utilised to offset future profits taxable under the MCIT law
was a key area of focus for the year ended 31 December 2024.
The Committee met with the Global Head of Tax in advance of the year-end financial reporting. The Committee
challenged the Group’s tax policies and the general approach to tax risk management.
Having challenged the recognition and measurement principles applied by management, the Committee was satisfied
with the approach taken as at 31 December 2024 and the disclosures made within the financial statements, including
those associated with deferred tax related to the introduction of the MCIT law.
Matter
How it has been addressed
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
68
Audit Committee Report continued
CVC Capital Partners plc Annual Report 2024
Going concern and viability statement
The appropriateness of preparing the Group financial statements on a going concern basis, and
whether the assessment undertaken by management regarding the Group’s long-term viability
appropriately reflects the prospects of the Group and covers an appropriate period of time.
The Committee considered whether management’s viability statement assessment adequately reflected the Group’s
key risks, whether the period covered by the statement was reasonable given the strategy of the Group, the risk
scenarios selected by management, and the environment in which the Group operates.
As a result of the assessment undertaken, the Committee was satisfied with the approach taken for the viability
assessment and that the going concern basis of preparation is appropriate.
Internal financial controls
In addition to becoming a listed business, the Group is increasing in size and complexity through a
combination of organic growth, the addition of new strategies, and the acquisition of complementary
businesses. The Group’s operating and regulatory environment is also becoming more complex.
Therefore the structure and formality of our control environment has been an area of significant focus.
The Committee has reviewed management’s evaluation of the current financial control environment and their plan to
formalise the control process, including the formal integration of third party organisations’ controls.
As a result of the assessment undertaken, the Committee will continue to monitor the implementation of remediation
and enhancements to CVC’s internal financial controls during 2025.
Preparation for reporting in line with the CSRD
The Annual Report and Accounts contain a Sustainability Statement prepared in line with the CSRD. As
this is the first year of CSRD reporting, the Group was required to define the scope of the Sustainability
Statement.
The Committee met with the Head of Sustainability and reviewed management’s assessment on the scope of CSRD
reporting to be included in the Annual Report and Accounts.
As a result of the assessment undertaken, the Committee was satisfied that the CSRD reporting included in the Annual
Report and Accounts is sufficient.
Matter
How it has been addressed
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
69
Audit Committee Report continued
CVC Capital Partners plc Annual Report 2024
Financial and corporate reporting
A key element of the Committee’s role is to review,
and challenge where necessary, the application
ofsignificant accounting policies, whether the
Company has adopted appropriate accounting
policies and whether appropriate estimates and
judgements have been made.
In line with its terms of reference, the Committee
monitored the Company’s year-end reporting
process to ensure it produced accurate, timely
financial results, and that it implemented
appropriate accounting standards and judgements
effectively. In doing so, the Committee received
anddiscussed reports separately from management
and the external auditor. Additional disclosure
wasadded during the drafting phase when the
Committee highlighted areas that required greater
detail or clarity.
The Committee also:
– reviewed narrative reporting in the Annual Report
and Accounts to ensure its consistency with the
financial reporting sections of the report and that
the overall layout and link between each section
ofthe Annual Report and Accounts were fair,
balanced, and understandable;
– received advice from external advisors that all
regulatory requirements were satisfied;
– received confirmation from the CFO that the
financial review, related commentary and financial
statements are consistent; and
– reviewed the disclosure judgements made by the
authors of each section and considered the overall
balance and consistency of the Annual Report
andAccounts.
As a result, the Committee recommended to the
Board, and the Board were satisfied that, as a whole,
the Annual Report and Accounts are fair, balanced
and understandable, and provide the information
necessary for shareholders to assess the Company’s
position, performance, business model and strategy.
External auditor
The Company’s external auditor is Deloitte LLP.
TheCommittee’s responsibilities include making a
recommendation to the Board on the appointment,
reappointment, resignation and removal of the
external auditor, reviewing the external auditor’s
independence andobjectivity, and assessing the
effectiveness of the audit process. In addition,
theCommittee assesses the qualifications, expertise
and resources of the external auditor and the
effectiveness of the audit process.
During the period, the Committee approved the
terms of engagement with Deloitte for 2024, the
external audit plan and the audit fee. After the year
end, the Committee will review the audit process
andthe quality and experience of the audit partners
engaged in the audit, and also consider the extent
and nature of challenges demonstrated by the
external auditor in its work and interactions
withmanagement.
Deloitte LLP have been the Group’s auditor since
2024. In line with current regulation, the Group
isrequired to put its external audit process out
totender by April 2034. A tender will follow the
guidelines in the Financial Reporting Council’s Audit
Committees and the External Audit: Minimum
Standard as per the Committee’s terms of reference.
Terri Fielding serves as the Deloitte audit partner
responsible for the Group audit, a role she assumed
in 2024.
Independence of the external auditor
The Committee recognises that the independence
ofthe external auditor is an essential part of the
audit framework and the assurance that it provides.
As such, the Committee assessed the independence
and objectivity of non-audit services provided
byDeloitte.
The Committee has adopted a policy that sets out a
framework for determining whether it is appropriate
to engage the Group’s auditor for non-audit services
and for pre-approving fees for non-audit services.
The overall objective of the policy is to ensure the
provision of non-audit services does not impair the
external auditor’s independence or objectivity. The
total value of non-audit services that can be billed by
the external auditor is restricted by a cap, set at 70%
of the average audit fees for the preceding three
years, as defined in the Revised Ethical Standards
issued by the Financial Reporting Council. As a
result,the cap will not apply until the year ended
31December 2027. Fees for non-audit services for
the year ended 31December 2024 were €9.9m
(Dec-23: €7.7m), being 154%, (Dec-23: 925%), of
the2024 audit fee. This is primarily due to Deloitte’s
work on the historical financial information included
in the IPO prospectus, which is not a recurring item.
This also includes fees related to the CSRD limited-
assurance work, which is treated as a non-audit
service under Financial Reporting Council guidelines
(since it is not a requirement under UK law).
In March 2025, the Committee was made aware
ofanon-audit tax advisory service which was being
provided to the Group by Ernst & Young LLP
(‘EYUK’), a component auditor used by our group
auditor Deloitte LLP for the audit of the Group. It was
concluded that this service was prohibited under the
FRC’s Ethical Standard. Deloitte placed reliance on
the work performed by this component audit firm.
As a result, the Audit Committee reviewed at its
18March 2025 meeting, the independence of our
external auditors and the services being provided
andrelied upon. The Committee considered the
applicable threats and safeguards relating to the
non-audit service that had caused the breach,
andthe mitigating actions Deloitte had taken
inresponse. The Committee further reassessed
allnon-audit services provided by CVC’s external
auditors, and the policies and procedures
withintheGroup regarding the provision of such
non-audit services. After careful consideration,
theCommittee satisfied itself the independence
ofEYUKas component auditor used by Deloitte
forthe group had not been impaired, and had
therefore not impeded the effectiveness of our
groupauditor Deloitte.
Overall, the Committee was satisfied with the
effectiveness of the audit and the external auditor’s
independence, and recommended to the Board that
Deloitte be reappointed as external auditor at the
Company’s forthcoming AGM.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
70
Audit Committee Report continued
CVC Capital Partners plc Annual Report 2024
Going concern and long-term viability
The Committee reviewed the Group’s going concern
and long-term viability disclosures in this Annual
Report and Accounts, together with the reports
prepared by the management team in support of
each statement, and advised the Board on their
appropriateness. As part of its review, the Committee
assessed a number of scenarios modelled by the
business (including a “severe but plausible” downside
scenario) and reverse stress tests carried out to assess
the strength of the Group’s financing arrangements.
The going concern and long-term viability
statements were reviewed by the external auditor,
who discussed its findings, and the conclusions
drawn by management in producing each
statement, with the Committee. You can find more
detailed information about the approach to the
going concern and long-term viability assessments
on pages 52 to 53.
Internal financial controls
The Committee has a key responsibility in monitoring
and reviewing the adequacy and effectiveness of the
Company’s internal financial controls, which include
procedures relating to:
– the maintenance of accurate records that fairly
reflect transactions; and
– receiving reasonable assurance that transactions
are recorded as necessary, to permit preparation
of financial statements in accordance with
International Financial Reporting Standards.
During the year, and in line with Provision 29 of the
Code, the Committee supported the Board by
reviewing the adequacy and effectiveness of the
Company’s internal financial controls in conjunction
with the Risk Committee, who have responsibility for
the overall internal control and risk management
framework (for further information, see the Risk
Overview section on pages 43 to 51). We have
received regular updates from management and
theGroup’s external auditor on the continued
development of the internal control framework, as
CVC continues to enhance and formalise controls
across finance and other key areas of the business,
including the oversight of third parties, IT general
controls and information security. Whilst the Risk
Committee, as noted above, oversees the broader
internal control framework and risk management
programme, the Committee is responsible for
controls that support the accuracy of the financial
statements. To that end, the Committee also
considered the key risk areas of judgement,
estimation and uncertainty within financial reporting
and the mitigating action taken by management.
Based on the outcome of the review, the Committee
will continue to monitor the implementation of
remediation and enhancements to CVC’s internal
financial controls during 2025, and will report on
progress in the 2025 Half Year report.
In addition, during the period, the Committee
received regular assurance reports from the Global
Head of Internal Assurance and additional reports
from the Finance team and the Group’s external
auditor. Further information on the Group’s
approach to financial risk management,
canbefound in note 27 on pages 222 to 226.
Internal assurance
A description of the Company’s combined assurance
model is set out on page 44 – this covers the first two
lines of defence. The third line of defence is the internal
assurance function, which operates a risk-based review
programme to provide independent assurance to the
Committee that the risk management framework
andcontrol environment is suitably designed and
appropriately operated. The Committee therefore
hasan important role in overseeing the key aspects,
ongoing work and forward-looking plans of the internal
assurance function.
The Committee recognises that the internal audit
function is in the process of ensuring that its policies
and procedures are appropriate for a publicly listed
company. The Committee will continue to review the
progress being made by the internal audit function,
and will report on this progress in the 2025 Annual
Report and Accounts.
During the period, the Committee received regular
reports from the Global Head of Internal Assurance
on the ongoing work streams for 2024, along with
the internal assurance plan for 2025.
The Board has delegated authority to the Risk
Committee to oversee the effectiveness of the
Group’s risk management and internal control
framework, including matters relating to
whistleblowing, fraud andbribery. The Audit
Committee is responsible for overseeing the
effectiveness of the Group’s financial control
framework. Please see the letter from the Chair of
the Risk Committee overleaf and the Company’s Risk
Overview on pages 43 to 51 for further information.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
71
Audit Committee Report continued
CVC Capital Partners plc Annual Report 2024
Portfolio Company: Ontic
Fund Investment:
Europe / Americas VIII
Dear shareholder,
I am pleased to present my first
Risk Committee Report, for the
year ended 31December 2024.
This letter outlines how the
Committee discharged the
responsibilities delegated
toitby the Board since IPO,
and the key areas of focus
during the period.
Committee Gender Breakdown
1
2
ò Men ò Women
Leading up to the Company’s IPO, various risk
management policies and procedures within the
Group had been established, which provided a
foundation for when the Company eventually listed.
As a result of the listing on Euronext Amsterdam in
April 2024, the Committee adopted prescribed terms
of reference to formalise ways of working with
systems of internal control and risk management.
The Committee therefore has a key role in governing
risk through formal processes, including: overseeing
compliance, technology and information
management; reviewing and monitoring policies and
overall process for identifying and assessing business
risks; overseeing and advising the Board on the
effectiveness of the Group’s risk management
andinternal control framework; and making any
necessary recommendations to the Board. You can
find the Committee’s terms of reference on the
Company’s website at: www.cvc.com/about/
corporate-governance.
Membership
The Committee comprises me as chair and two
independent non-executive directors, Dr Mark
Machin and Carla Smits-Nusteling. The Group’s
Company Secretary, Fiona Evans, acts as secretary
to the Committee.
Areas of focus in 2024
In line with the Committee’s terms of reference and
the description of responsibilities set out in the Risk
Overview section on page 43, the key areas of focus
for the Committee during theperiod have been:
– reviewing the Group’s RAP;
– reviewing and assessing the adequacy of the
Group’s systems of internal control and risk
management, including systems relating to using
artificial intelligence, information security systems
and data protection;
– reviewing the Group’s principal risks;
– reviewing and receiving presentations on the
risksassociated with the adoption of AI within
thebusiness and across the Group as part
oftheoverall digital strategy, together with
understanding and, where needed, putting in place
the necessary controls and employee training
needed to mitigate those risks, culminating in the
adoption of an AI governance structure; and
– reviewing the arrangements in place for
whistleblowing and detecting fraud.
Effectiveness of the control
environment
The Board has jointly tasked the Risk Committee and
Audit Committee with overseeing the effectiveness
ofthe internal control environment, with the
RiskCommittee considering the broad control
environment, and the Audit Committee maintaining
specific focus on internal financial controls (see page 71
of the Audit Committee report for further information).
Based on the review, the Committee acknowledges
the ongoing programme of change to improve the
internal control environment through enhancements
to, and formalisation of, key control operations.
TheCommittee will continue to oversee this
programme to ensure that the overall internal
control framework is appropriate for a publicly listed
company. In determining the effectiveness of the
internal control environment during 2024, and in line
with Provision 29 of the Code, the Risk Committee
has discharged its duties by considering:
– the design of the overall risk management
framework and its components;
– appropriateness of the Group’s RAP
andframework;
– regular management reports on the progress
ofenhancements to the internal control
environment, including implementation
andadoption in the business;
– regular review of the profile of each principal risk,
and any factors affecting the risk profile;
– review of key risk indicators linked to quantitative
risk appetite measures, and supporting
commentaries;
– review of risk matters (including risk events and
control weaknesses) escalated to the Committee
inline with the agreed risk appetite, along with
supporting management action plans;
– review of a schedule of emerging risks, along with
supporting management action plans; and
– presentations from SMEs within the business on
keyrisk topics (including information security,
third-party risk management, and AI governance).
You can find further information relating to the work
undertaken by the Committee since IPO, along with
information on how the Group approaches risk
generally, including the principal risks facing the
Group, in the Risk Overview section on pages 43 to 51.
I would like to thank my fellow Committee
members for their contributions
during the year, andI look
forwardtocontinuing
ourwork in 2025.
Baroness Rona Fairhead
Chair of the Risk
Committee
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
72
Risk Committee Report
CVC Capital Partners plc Annual Report 2024
Committee attendance
Members Attendance
Baroness Rona Fairhead (Chair) 3/3
Dr Mark Machin 3/3
Carla Smits-Nusteling 3/3
Dear shareholder,
On behalf of the Board, I am
pleased to present my first
Remuneration Report for 2024.
Committee Gender Breakdown
1
2
ò Men ò Women
The Remuneration Report provides details of
theremuneration paid to the directors of the
Boardof CVC Capital Partners plc (the Company)
fortheir services for the reporting year of the
Company’s listing on Euronext Amsterdam
to31December 2024. It also sets out the
implementation of the Company’sRemuneration
Policy, which was approved by the Company’s
shareholders and adopted on 30 April 2024.
2024 was a significant year, with the Company listing
on Euronext in April 2024. As such, during the year,
the Committee focused on establishing policies
andways of working as a public company
remuneration committee.
The expertise and dedication of our people is the
cornerstone of our firm’s success. We prioritise
investing in our people by hiring talented individuals,
providing comprehensive training, and fostering an
environment where their best ideas can thrive. Our
remuneration strategy is designed to retain and
motivate our team in the areas they affect over the
long term, aligning their interests with those of our
clients and shareholders.
Our approach for our executive directors is intended
to focus on long-term incentives rather than annual
bonuses. We intend for the executive directors to be
strongly aligned to shareholder interests through
both (a) significant shareholdings built up over time
prior to listing and (b) performance-based awards
tied to their future achievement. This structure
encourages our team to concentrate on the
sustained performance of the firm and the interests
of our shareholders, with fixed remuneration forming
a smaller portion of total compensation.
Following the listing, the Committee implemented
along-term incentive plan to incentivise delivery of
key performance metrics, specifically including key
financial metrics critical to achieving long-term
shareholder value. Aligned with our focus on the long
term, no short-term incentive is currently proposed
for the executive directors.
The Committee considers that the Remuneration
Policy has operated as intended since listing. We are
satisfied that, when compared to similar companies
in relevant countries, industries and situations,
theremuneration of the directors is appropriate,
reflecting their skills, expertise and commitment,
aswell as considering external market pay rates
across the Company’s peer group, and salaries
across the wider Group.
I would like to thank my fellow Committee members
for their contributions during the year, and I look
forward to continuing our work in 2025.
Dr Mark Machin
Chair of the
Remuneration
Committee
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
73
Remuneration Report
CVC Capital Partners plc Annual Report 2024
Committee attendance
Members Attendance
Dr Mark Machin 3/3
Baroness Rona Fairhead 3/3
Carla Smits-Nusteling 3/3
Implementation of the Remuneration Policy
The table below sets out the key elements of remuneration for the executive directors under the Remuneration Policy.
Base salary Fixed cash compensation aimed at attracting
and retaining well-qualified executives.
€540,000 annual base salary paid to
each executive director.
Short-term
incentives
A variable amount, paid annually in cash or
shares and subject to achieving key
performance objectives.
No bonus was awarded for 2024.
Long-term
incentives
An equity award subject to achieving pre-
determined objectives. Total vesting and
holdingperiods of at least five years will apply.
Intended to motivate executives to deliver
sustained long-term growth, and align
executives to shareholders’ interests.
To fairly reflect the value the executive
directors are expected to add to the
business over the long term, equity
awards were made in 2024, with a total
vesting and holding period of five years
and a combination of market, financial
and non-financial performance metrics
apply. The face value of the awards,
calculated as at the date of grant
andbased on full vesting, was €6m
forthe CEO and €5m for the CFO.
Thenon-executive chair did not receive
any equity awards.
Pension and
benefits
contribution
Executive directors shall participate in
retirement plans or receive cash payment in
lieuof participation, in accordance with local
regulations and policy of the Company. Pension
contribution rates shall be aligned with those
available to the UK workforce.
The executive directors have exceeded
their UK Lifetime Pension Allowance,
and received a cash allowance in lieu
ata rate aligned with those available to
the UK workforce.
Fringe benefits Executive directors may receive other customary
benefits in line with market practice.
The Company provided private medical
insurance for the executive directors
and their family, life assurance cover,
membership of the Company’s dental
and travel insurance schemes, income
protection insurance, and a travel
allowance of £10,100 a year. Each
ofthese benefits is aligned to senior
employees within the wider workforce
ofcomparable tenure.
Element Summary of Remuneration Policy Remuneration approach since listing
Malus and
clawback
The Company’s malus and clawback policy will
authorise the Company to recover, or claw back,
incentive compensation payments, and provides
the ability to make adjustments to compensation
payments in certain circumstances, including
ifany cash or equity incentive award is
predicatedupon achieving financial results
andthe financial results are substantially
subjectto an accounting restatement.
The Company has in place a malus and
clawback policy under which variable
remuneration of directors may be
subject to recoupment in circumstances
the Committee considers appropriate.
The Committee may apply malus and
clawback provisions where a trigger
event occurs within two years of vesting
or payment of an award.
Severance
payments
Severance payments are made in accordance
with any applicable terms in employment
agreements in a manner compliant with
localregulations.
None since listing.
Shareholding
requirements
Minimum share ownership requirements are set
at three times executive director base salary.
Shares that count towards the requirements
include any shares held unencumbered by
anexecutive director, plus any shares vested
butheld, and any shares unvested but not
subject to future performance conditions.
Thisrequirement may be built up over five years
from appointment.
Executive directors will be required to hold shares
exceeding 100% of salary (or, if lower, their actual
shareholding) for two years post-employment.
Holding and vesting periods for all equity awards
will be adhered to post-employment.
All executive directors have met this
requirement since listing.
Element Summary of Remuneration Policy Remuneration approach since listing
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
74
Remuneration Report continued
CVC Capital Partners plc Annual Report 2024
The table below sets out the key elements of remuneration for the non-executive directors under the
Remuneration Policy, and the remuneration made available in 2024.
Element Summary of Remuneration Policy Remuneration approach since listing
Fees Non-executive directors will receive
fixedpayments only and no variable
compensation. They will not participate
inany Company incentive plans. The
remuneration of the non-executive directors
is not dependent on the financial results of
the Company and shall reflect time spent
and the responsibilities of the relevant role.
The non-executive directors’ annual
remuneration for serving on the Board
and any Board Committees was
asfollows:
– €250,000 for performing their
roleasa non-executive director,
inclusive of membership of any
Boardcommittee.
– €50,000 for performing the role
ofchair of any Board committee
(excluding Rolly van Rappard as he
does not receive an extra fee for
chairing the Nomination Committee).
Fringe benefits Customary fringe benefits may apply. Non-executive directors are reimbursed
for reasonable travel expenses,
andcovered under CVC’s business
travel insurance.
CEO Pay ratio
The table below shows how pay for the CEO compares to our UK employees at the 25th percentile, median
and 75th percentile. For the purposes of the CEO, the data is the total of fixed pay and variable pay for Rob
Lucas, as set out in the single figure table on the right hand side.
CEO Pay ratio
25th percentile 67:1
Median percentile 33:1
75th percentile 16:01
Exercise of discretion
Under the Remuneration Policy, the Board may, upon recommendation of the Committee, deviate from the
Remuneration Policy in exceptional circumstances where appropriate, considering the long-term perspectives
of the Company. The Committee also retains a certain level of discretion under the terms of the variable
remuneration (including to amend performance conditions that apply to variable remuneration, and for leaver
treatment). No such discretions were exercised when making any payment to directors during the year.
Key remuneration elements and approach to remuneration during the year
Executive directors
Total remuneration
The total remuneration of the executive directors paid during the year ended 31December 2024 is presented in
the table below.
Director Year
Base
salary
1
€
Short-term
incentives
Long-term
incentives
€
Payments
in lieu of
pension
€
Fringe
benefits
€
Total
€
Ratio of fixed
to variable
remuneration
Rolly van
Rappard
Chair
2024 553,015 n/a n/a 110,603 38,639 702,257 100%
Rob Lucas
CEO
2024 553,015 n/a 6,000,000 105,073 41,502 6,699,590 10.44%
Fred Watt
CFO
2024 553,015 n/a 5,000,000 94,012 30,865 5,677,892 11.94%
Note: the directors were appointed to the Company’s Board on 12 April 2024. The 2024 figures are inclusive of remuneration paid by the Group
during the year prior to their appointments becoming effective.
Base salary
Base salary provides competitive fixed cash compensation and is consistent between all Managing Partners
throughout the Group.
Long-term incentives
The share-based awards granted to the executive directors under the CVC Long Term Incentive Plan (the LTIP)
during the year ended 31December 2024 are presented in the table below.
Director
Grant
date
Type of
award
Grant
facevalue
ofaward
Number of
options
granted
2
Performance period
Holding
period
Performance
conditions
Rob
Lucas
CEO
16 Dec 24 Performance
Share Award
(conditional
award)
€6m 274,977 1/3 – 1 Jan 24 to 31 Dec 26
1/3 – 1 Jan 24 to 31 Dec 27
1/3 – 1 Jan 24 to 31 Dec 28
Until
31Dec
2028
See overleaf
Fred
Watt
CFO
16 Dec 24 Performance
Share Award
(conditional
award)
€5m 229,147 1/3 – 1 Jan 24 to 31 Dec 26
1/3 – 1 Jan 24 to 31 Dec 27
1/3 – 1 Jan 24 to 31 Dec 28
Until
31Dec
2028
See overleaf
1. Directors salaries are set at €540,000 as at 1 January each year and are paid in sterling. The base salary figures in the table are set in euros
based on an exchange rate of 0.8464 as at 31 December 2024. Therefore any deviation from €540,000 is a result of local exchange rates.
2. The share price used to determine the number of options granted was the mid-market closing price on 13 December 2024 being €21.82.
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Remuneration Report continued
CVC Capital Partners plc Annual Report 2024
Performance conditions attaching to LTIP awards
The table below illustrates the performance conditions attaching to each vesting tranche of the LTIP awards.
No vesting of the tranche shall occur below threshold performance, and vesting will be calculated on a
straight-line basis for performance outcomes between threshold and maximum.
Area Metric Weight Threshold
1
Maximum
Vesting percentage 25% vesting 100% vesting
Shareholder
returns
Relative TSR (total shareholder
return) compared to a private
equitypeer group
2
40%
Median of
thepeergroup
Upper quartile
of the peer group
Financial
metrics
AUM-weighted gross value
creation across private equity
strategies
25% +12% per annum +20% per annum
Rolling three-year average
growth in MFE
25% +7% per annum +10% per annum
Non-
financial
metrics
Increase in % of eligible portfolio
companies with validated
science-based targets
5% +6% per annum +10% per annum
Women representation
(excluding assistants)
5% +0.5% per annum +1.0% per annum
1 Any vesting percentage between threshold and maximum will be calculated on a straight-line basis.
2 The peer group comprises private equity and alternative asset management firms in the UK, Europe and North America, of comparable size to
CVC, whose returns are suitably correlated with CVC. The peer group for the 2024–2028 LTIP awards is: 3i Group, Apollo, Ares, Blackstone, Blue
Owl Capital, Bridgepoint, Carlyle, EQT, Eurazeo, Intermediate Capital Group, Investor AB, Kinnevik, KKR, Man Group, Partners Group Holding,
TPG and Wendel.
Pension and benefits contribution
Executive directors have exceeded their UK Lifetime Allowance, and received a cash allowance in lieu of
participation at a rate aligned with those available to the UK workforce. Basic entitlements are 8% of base
salary a year, and employees receive an additional payment dependent on age and length of service. This is
equivalent to 12% of salary in the case of Rolly van Rappard, 11% of salary in the case of Rob Lucas, and 9%
ofsalary in the case of Fred Watt.
Fringe benefits
The Company provided private medical insurance for the executive directors and their families, life assurance
cover, membership of the Company’s dental and travel insurance schemes, income protection insurance, and
a travel allowance of £10,100 a year. Each of these benefits is aligned to senior employees within the wider
workforce of comparable tenure.
Adjustments to remuneration
No malus or clawback provisions have been applied during the year.
Neither the Company, nor any Group company, has made any loans to directors in 2024 and there are no
such outstanding loans.
No severance payments (including distributions) were made to the executive directors during the year.
Shareholding requirements
The share interests of the directors and their connected persons as at 31December 2024 are:
Director
Current
shareholding
(ordinary shares)
Conditional
subject to
performance
Conditional
subject to
employment
only
Total number of
ordinary and
conditional
shares
Minimum
shareholding
requirement met
1
Rolly van Rappard
Chair
67,373,129 n/a n/a 67,373,129 n/a
Rob Lucas
CEO
35,516,093 274,977 n/a 35,791,070 Yes
Fred Watt
CFO
14,044,592 229,147 n/a 14,273,739 Yes
1. The minimum shareholding requirement for each executive director as at 31 December 2024 was 78,036 shares.
Malus and clawback policy
The Committee adopted a malus and clawback policy in 2024 giving the Committee the ability to exercise its
discretion under the policy in certain scenarios. Such scenarios include but are not limited to:
– material misstatement or restatement in the financial statements;
– negligence, fraud or serious misconduct of a participant or with knowledge of the participant;
– serious reputational damage to CVC;
– material adverse effect on the financial position of CVC;
– material downturn in the financial performance of CVC;
– material failure of risk management; and
– conduct by a participant constituting a breach of CVC’s values and policies.
Malus and clawback provisions apply if the Committee considers that a trigger event has occurred at any time
prior to the second anniversary of the vesting of a share award or payment of a bonus (or such longer period
as determined by the Committee). During 2024, no such discretion was exercised by the Committee.
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Remuneration Report continued
CVC Capital Partners plc Annual Report 2024
Non-executive directors
Total remuneration
The total remuneration of the non-executive directors
1
paid during the year ended 31December 2024 is
presented in the table below:
Director Start date Committee membership
For the year ended
31 December 2024
Dr Mark Machin 30/04/2024 Chair of the Remuneration Committee.
Member of: Audit Committee, Risk
Committee, and Nomination Committee.
€250,417
Baroness Rona Fairhead 30/04/2024 Chair of the Risk Committee. Memberof:
Audit Committee, Remuneration
Committee, and Nomination Committee.
€250,417
Carla Smits-Nusteling 30/04/2024 Chair of the Audit Committee. Member of:
Risk Committee, Remuneration
Committee, and Nomination Committee.
€250,417
1. Non-executive directors were appointed to the Company’s Board with effect from Admission. The 2024 figures are inclusive of fees paid by the
Group for their services during the year prior to their appointments and also include the additional fee for acting as a chair of a committee.
Consideration of other matters relating to directors’ remuneration
The Company aims for an ongoing dialogue with its shareholders regarding director remuneration. If there
isasubstantial vote against a resolution in relation to directors’ remuneration, the Company would seek
clarification for the reasons behind the reaction of shareholders.
When considering remuneration, the Company also takes into account the pay and conditions within the
wider workforce. Specifically, the Committee reviews pay ratios and other metrics relating to workforce
remuneration. The Company intends to engage with other stakeholders, including the workforce, on executive
remuneration in 2025, following the first approval and publication of the policy implementation.
During the year, the Committee received remuneration advice from Willis Towers Watson, who were appointed
in 2023 following a formal tender process. The Committee is satisfied that advice received was objective and
independent. The appointed lead advisor at Willis Towers Watson has no connection with individual directors,
and did not provide any other services to the Company.
The Company has various subsidiaries. In 2024, the Company did not allocate a charge for any remuneration
to any subsidiaries.
The Remuneration Report has been prepared in accordance with the Dutch Financial Supervision Act (Wet op
het Wetboek), the applicable provisions of the Dutch Civil Code (Burgerlijk Wetboek) and was also prepared
with reference to the UK Corporate Governance Code. It will be presented for an advisory vote to the
Company’s shareholders at the AGM to be held on 20May 2025.
The Company understands its responsibilities with respect to engagement with our workforce on matters
relating to remuneration. The IPO prospectus contained an outline of the Remuneration Policy, which was
approved by shareholders, the majority of whom are employees, between the determination of the offer price
and Admission. The structure of remuneration across CVC is therefore well understood and communicated
across the business and there are various remuneration policies already in place across the organisation, as
required by regulation, applying to various employees within the Group, and these were taken into account
when determining the executive directors’ Remuneration Policy. As a result, the structure of remuneration
outlined in the Remuneration Policy is well understood across CVC.
The Committee has developed the Remuneration Policy to be consistent with the six factors outlined in
Provision 40 of the Code, as set out below:
– clarity: our Policy is clear, and disclosures on our decision-making (in relation to policy and its
implementation) are transparent.
– simplicity: the Policy and the Committee’s approach to implementation is simple and well understood.
Theperformance measures used in the LTIP are well aligned to the Group’s strategy.
– risk: the Committee has ensured that remuneration arrangements do not encourage or reward excessive risk
taking by setting targets that are stretching and achievable, with discretion to adjust formulaic outcomes if
necessary.
– predictability: the range of outcomes under our Remuneration Policy are quantifiable, clearly linked to
defined performance outcomes.
– proportionality: the link of the performance measures to strategy and the setting of targets ensures
outcomes are proportionate to performance, and importantly do not reward poor performance.
– culture: the Remuneration Policy is consistent with the Group’s culture, driving behaviours that promote
thelong-term sustainable success of the Group for the benefit of all stakeholders.
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Remuneration Report continued
CVC Capital Partners plc Annual Report 2024
The Board has identified its key
stakeholders as our people,
clients, portfolio companies
shareholders and regulators.
The Code requires the Board to understand the views
of the Company’s keystakeholders and describe how
the Board has considered their interests, and the
matters set out insection 172 of the UK Companies Act
2006, in discussions and decision-making. The Board’s
decision to complete an IPO of the Company on
Euronext Amsterdam in April 2024 was a key decision
during the year. The Board felt that, overall, the
IPOwas in the best interests of the Company’s
stakeholders as a whole and all beneficial shareholders
and/or shareholder group representatives were invited
to vote on the proposed IPO.
Set out below is an overview of how the Board has
engaged with each of its key stakeholders.
Our people
CVC is fundamentally a people business. Its
employees are integral to the continued success of
the Group, and therefore attracting, developing and
retaining them is key.
The Chief People Officer provides feedback on our
employees to the Board. This feedback together with
the workforce engagement undertaken by the Board
as outlined on page 62, was key in the Board then
reviewing and approving the people strategy in
February 2025.
Clients
Clients are a central focus of the Group’s business as
they provide the capital that the Group invests as part
of its investment management activities.
Management of relationships with clients is long-
established and has continued to be a key priority
throughout 2024, as a result of the Group’s significant
fundraising activities across strategies.
High levels of engagement and communication with
existing and prospective clients continued throughout
the year, including during annual client meetings,
where clients were provided with an update on
performance of all strategies, and also had the
opportunity to offer their views on a range of topics.
Over 800 clients attended the meetings in London
andSingapore, both inperson and virtually. Directors
attend these meetings and regular feedback on these
meetings and ongoing fundraising activity is provided
to the Boardand to senior management.
Clients typically undertake significant due diligence
on the Group as part of their assessment of an
investment in a CVC-managed fund. Undertaking
these exercises, both with the Group’s partners during
2024, helped to provide the Group with an up-to-
date view of the primary concerns and considerations
of such clients, and these were factored into how the
Group approached the establishment, management
andoperation of the funds.
Clients also receive regular updates through calls,
meetings and reports that focus on providing high-
quality timely information and data.
In addition, as regards product research,
development and growth, CVC regularly conducts
aclient perception survey to inform their product
development and fundraising strategy. Consistent
feedback is that clients recognise CVC’s (i) European
history and presence, (ii) origination engine,
(iii)effectiveness at pricing corporate risk, and
(iv)consistently strong investment performance.
Informed by this feedback, CVC has adopted a
strategy that seeks to develop scalable products in
direct adjacencies that can become market leaders
and deliver operational leverage.
Portfolio companies
The funds the Group manages are invested in
companies, and are therefore the source of returns
to clients and, ultimately, the Group’s shareholders.
These companies employ over 500,000 people and
have a significant role in the communities where
they operate.
Following feedback on the outcome of stakeholder
engagement from the Head of Sustainability, the Board
approved the sustainability strategy in December 2024.
The priorities agreed include portfolio company
engagement and portfolio emissions engagement.
Shareholders
During 2024, following extensive engagement with a
broad range of investors as part of the IPO process,
CVC continued to maintain an active and
transparent dialogue with its shareholders through
various engagement activities. After the Half-Year
Results in September, the CEO, CFO, and Head
ofClient and Product Solutions conducted a series
ofcalls with the Company’s top 30 shareholders
todiscuss key business developments and
strategicprogress. Additionally, the Company
participated ininvestor conferences in September
and November, where senior management engaged
in both one-on-one and group meetings with existing
andprospective investors. Beyond these structured
events, the shareholder relations team ensured
ongoing engagement with investors and analysts
outside of quiet periods, addressing inquiries and
providing updates on the Company’s performance.
Looking ahead, in addition to public calls in the
context of financial results, the Company intends
toparticipate in a series of investor events to meet
shareholders, strengthen relationships, and further
enhance engagement. The AGM in May 2025 will
also serve as a key forum for the Board to interact
with shareholders and gather their perspectives.
The Head of Business Development and Shareholder
Relations provides regular updates to the Board on
shareholder engagement activities. This feedback
was considered as part of the Board’s review and
approval of the Group strategy in February 2025 and
also was considered in its decision to recommend the
payment of a dividend.
Regulators
Regulators provide key oversight into how the Group
operates its business. The interests of clients and
shareholders are served by CVC engaging
constructively with regulators.
During the year, representatives of CVC attended
anumber of meetings with regulators to discuss
keyregulatory initiatives and to assist with various
reviews. In addition, the General Counsel provides
anupdate on regulators at every Board meeting and
this is taken into account by the Board when
reviewing and agreeing its principal risks with the
inclusion of legal and regulatory risk as set out in the
Risk Overview on page 50.
Overall, the Group has sought to deepen its
relationships with regulators and CVC is committed
to helping with the development of financial services
and corporate governance regulation. CVC is a
member of, and contributes to, BCVA, Invest Europe,
AIC and AIMA and is supportive of the objectives of
the European Union’s SFDR. CVC communicates
entity-level disclosures on its website and the latest
SFDR disclosures can be found at www.cvc.com.
Further information on stakeholder engagement
activities can be found in the Sustainability Report
onpage 100. Overleaf, information is also provided
on how CVC engages with communities where
weoperate.
The Board regularly reviews engagement
mechanisms to ensure that they are fit for purpose.
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Stakeholder engagement and section 172 statement
CVC Capital Partners plc Annual Report 2024
The global Philanthropy
programme was established in
2011, aiming to make a positive
difference inthe communities
where we, and our portfolio
companies, do business
1
.
Our work consists of three main activities: grant
funding for non-profits; engaging employees in our
charitable efforts; andsupporting our portfolio
companies’ communityactivities.
Grant funding for non-profits
We provide multi-year grant funding, currently
to30non-profit organisations in countries across
ournetwork, working in education, employability
orentrepreneurship.
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CVC Foundation
CVC Capital Partners plc Annual Report 2024
1. The CVC Foundation (CVC Philanthropy Limited) is a separate legal entity that sits
outside of the CVC Capital Partners plc group of companies, but provides a route by
which employees of the Group can make contributions to society as a whole.
2024 Grant funding for non-profits –
by region
21%
19%
60%
l
Americas
l
Asia
l
Europe
2024 Grant funding for non-profits –
by focus area
32%
39%
19%
10%
l
Education
l
Employability
l
Enterprise
l
Venture
Philanthropy
We support each organisation through a local
CVCchampion. By funding the work of our non-
profit organisations, we aim to address the barriers
thatprevent people from achieving their potential
ineducation or employment. Each charity partner
we support must have a defined plan for their
inputs,activities, outcomes and impact.
Education for All
In 2024, we launched a new initiative, Education
forAll, a multi-year grant programme aimed at
improving basic education for children and young
people in countries where we operate. The first grant
recipients were Pratham and Read to Read, two
highly reputable NGOs in our target regions of India
and Indonesia, respectively. We committed a total
of€2.3m in grants under this programme in 2024.
Engaging our employees
We encourage our employees to give back to
theircommunities in three ways: matching
donations; volunteering; and corporate challenges
and fundraising.
Corporate matching
We augment our employees’ donations to charities
of their choice by twice the amount for senior staff
and five times the amount for everyone else. During
2024, we made 920 matched donations to over 400
organisations across the globe. The most popular
causes for these donations were education and
disaster relief. Altogether, these donations raised
€5.2m during the year. We also support ourportfolio
companies’ fundraisers through a special employee
matching programme enabling CVC employees to
donate to a portfolio company’s fundraiser, with
their contributions matched at twice the amount.
Volunteering and pro-bono work
The Philanthropy team regularly organises
opportunities for our employees to use their
professional and practical skills to enhance the work
of our partner charities. Volunteering can either be
skills-based, such as serving on a charity’s board,
orpractical, for example, helping primary school
children improve their literacy skills. Last year, two
thirds of our employees took part in at least one
charity initiative organised by CVC.
Supporting our portfolio companies
We have been working with our portfolio companies
for over a decade and, in recent years, expanded our
activities as businesses have increased their focus on
giving back to their communities.
Planet & People Grant programme
In November 2022, we launched a specific grant
programme, aiming to co-fund projects that help
companies advance their environmental and social
initiatives. During 2024, we made 11 grants totalling
over €500,000. Projects supported include setting up
an employee volunteering programme, providing
educational bursaries for disadvantaged students,
training in digital skills for under-served groups,
installation of smart meters to improve energy
efficiency and training in sustainability.
Sharing knowledge
We recognise portfolio companies’ philanthropic
programmes are at different stages of development
and maturity, so we look for opportunities to connect
businesses that have common interests, and
organise learning and collaboration groups around
certain project types and industry sectors so
companies can share their knowledge and
experience. Through our Planet & People Grant
programme, we have gained insights that enable us
to connect companies with similar projects, so they
can share knowledge and maximise the impact of
our grants.
Matching for disaster relief
The CVC Foundation regularly responds to
humanitarian crises arising from conflict or natural
disasters, typically through matching employee
donations. In 2024, donations were matched for
natural disasters in Brazil, the United States and
Spain. The Foundation will typically donate to
anNGO working on the ground in the affected
country. During 2024, staff supported three major
relief causes.
Further information on CVC’s philanthropic activities
can be found here on the Company’s website at
www.cvc.com/cvc-foundation.
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CVC Foundation continued
CVC Capital Partners plc Annual Report 2024
Investor relations
Shareholders are a key stakeholder of the business and the Company aims to maintain an open and
constructive dialogue with them, and aims to keep them updated by informing them clearly, accurately
andina timely manner about its strategy, performance and other matters and developments that could
berelevant to their investment decisions.
CVC shares
CVC is a public limited company with the name CVC Capital Partners plc, incorporated as a limited
companyunder the laws of Jersey on 21 December 2021 with the name CVC Holdings Limited. The Company
was re-registered as a public limited company and renamed to CVC Capital Partners plc on 18 April 2024.
CVCpublicly listed its ordinary shares on Euronext Amsterdam on 30 April 2024 and the shares are included
inthe main AEX Index under the ticker symbol CVC. The shares are ordinary shares, created under and in
accordance with the Jersey Companies Law, with no nominal value in the share capital of the Company.
ItsLEI is 213800E8UQS1KA32YD39 and the shares are listed under ISIN code JE00BRX98089. The share price
onthe day of listing was €14.00.
The Company is registered with the Jersey register of companies under number 140080. The principal laws and
legislation under which the Company operates and its shares, have been created in accordance with the
Jersey Companies Law and regulations.
The market capitalisation of CVC
As at 31December 2024, the issued share capital of the Company amounted to 1,062,984,492 ordinary shares
with no shares held in treasury. All shares rank pari passu with each other. There are no restrictions on the
transferability of the shares under Dutch law or the Articles.
Share price performance
Share price information 2024
Market capitalisation at year-end (€ billion) 22.60
Lowest closing share price (5 August 2024, €) 16.00
Highest closing share price (2 December 2024, €) 23.43
Closing year-end share price (€) 21.26
Total shareholder return since IPO 51.9%
Average daily trading volume on Euronext (shares (million)) since IPO 1.3
Share price performance in 2024
*
14.00
16.00
18.00
20.00
22.00
24.00
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
*As provided by Bloomberg
Substantial shareholdings
Pursuant to the Dutch Financial Supervision Act, shareholders are required to notify the Dutch Authority for
theFinancial Markets (Autoriteit Financiële Markten ) (the AFM) as soon as a shareholding or short position
equals or exceeds 3% of the issued capital. Subsequently, the AFM needs to be notified again when the
shareholding or short position consequently reaches, exceeds or falls below a threshold. This can be caused by
the acquisition or disposal of shares by the shareholder or because the issued capital of the issuing company
isincreased or decreased. Thresholds are: 3%, 5%, 10%, 15%, 20%, 25%, 30%, 40%, 50%, 60%, 75% and 95%.
The duty to notify applies to legal entities as well as individuals. It is possible that the stated percentage of
issued share capital differs from the actual percentage of issued share capital, as the shareholders may only
berequired to notify the AFM in the event that their percentage of shareholding reaches, exceeds or falls below
one of the thresholds. Relevant reporting by shareholders can be found in the ‘Register of substantial holdings
and gross short positions’ at www.afm.nl.
Amendment of the Articles of Association
The Articles of Association may be amended by a special resolution adopted by a general meeting of
shareholders. Any resolution to amend the Articles of Association will be included in the notice of meeting.
AsaJersey incorporated company, a special resolution requires the approval of two thirds or more of those
shareholders who attend and vote or cast their vote in advance of a general meeting for the resolution
tobepassed.
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Shareholder information
CVC Capital Partners plc Annual Report 2024
CVC Group structure
The diagram below sets out the simplified Group structure following completion of the Pre-IPO
Reorganisation.Further information can be found in the Company’s prospectus at
www.cvc.com/shareholders/ipo-documents.
All ownership percentages are as at 31 December 2024 and are 100% unless stated otherwise.
Management Shareholders
CVC Nominees Limited
Clear Vision Capital Fund
SICAV-FIS S.A.
49%
Non-CVC Shareholders
30 %
Vision 2013 PCC
21%
CVC Capital Partners plc
CVC Management
HoldingsIILimited
Management Group
1, 2
Advisory Group
3
Credit Group
•
Shareholders
•
Group Companies
•
Holding Companies
Notes:
1. Other than such entities retained by Clear Vision Capital Fund SICAV-FIS S.A.
2. CVC Secondary Partners sits beneath CVC Green Holdings Limited, a direct subsidiary of CVC Management Holdings II Limited.
3. The 60% ownership of CVC DIF sits within the Advisory Group.
Branches within the Group
The Group has branches in the following countries: Denmark; France; Italy; Korea; the Netherlands; Sweden;
and the United Kingdom.
Appointment or removal of directors
The Company may by ordinary resolution appoint any person to be a director to fill a vacancy or as an
additional director. The directors also will have power, at any time, to appoint any person to be a director
either to fill a vacancy or as an additional director. At every AGM, all of the directors at the date of the notice
convening the AGM shall retire from office and seek reappointment. A director may be removed by ordinary
resolution and the directors may from time to time remove any director that was appointed by the directors.
Powers to issue or acquire shares
On 26 April 2024, the AGM of Shareholders authorised the Board of directors to:
(a) allot shares between Admission and the next AGM of the Company of up to 333,333,333 shares;
(b) allot shares in connection with a rights issue or other fully pre-emptive offer between Admission and the
next AGM of the Company, of up to 200,000,000 shares;
(c) dis-apply pre-emption rights and allot up to 100,000,000 shares as if Article 6 of the Articles of Association
did not apply; and
(d) acquire own shares, subject to the following conditions:
i. the maximum number of ordinary shares authorised to be purchased is 100,000,000;
ii. the minimum price (exclusive of expenses) which may be paid for each ordinary share is €0.01;
iii. the maximum price (exclusive of expenses) which may be paid for each ordinary share is the higher of:
A. an amount equal to 105% of the average of the middle market quotations of an ordinary share of
the Company as derived from the Daily Official List (Officiële Prijscourant) of Euronext Amsterdam
for the five business days immediately preceding the day on which the ordinary share is
contracted to be purchased; and
B. an amount equal to the higher of the price of the last independent trade of an ordinary share and
the highest current independent bid for an ordinary share on the trading venue where the
purchase is carried out;
iv. this authority shall expire at the end of the next AGM of the Company held after the date on which this
resolution is passed; and
v. a contract to purchase ordinary shares under this authority may be made before the expiry of this
authority and concluded in whole or in part after the expiry of this authority.
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Shareholder information continued
CVC Capital Partners plc Annual Report 2024
Dividend and other distributions
Subject to the Jersey Companies Law, the Company may, by an ordinary resolution of its shareholders, declare
dividends in accordance with the respective rights of shareholders providing that no maximum may exceed
the amount recommended by the directors. Subject to the Jersey Companies Law, the directors may if they
think fit from time to time pay to the shareholders such interim dividends as appear to the directors to be
justified by the financial resources of the Company available for distribution under the Jersey Companies Law.
If, at any time, the share capital of the Company is divided into different classes, the directors may pay such
interim dividends in respect of those shares which confer on the holders thereof deferred or non-preferred
rights, as well as in respect of those shares which confer on the holders thereof preferential rights with regard
to dividends. Provided the directors act in good faith, they will not incur any personal liability to the holders
ofshares conferring a preference for any damage they may suffer by reason of the payment of an interim
dividend on any shares having deferred or non-preferred rights.
All unclaimed dividends may be invested or otherwise made use of by the directors for the benefit of the Company
until claimed. No dividend will bear interest as against the Company. Any dividend which has remained unclaimed
for a period of 12 years from the date of declaration thereof will, if the directors so resolve, be forfeited and cease to
remain owing by the Company and will thenceforth belong to the Company absolutely.
A General Meeting declaring a dividend may, upon the recommendation of the directors, direct that payment
of such dividend will be satisfied wholly or in part by the distribution of specific assets and in particular of paid-
up shares or debentures of any other company. The directors may, before recommending any dividend, set
aside out of the financial resources of the Company available for distribution under the Jersey Companies Law,
such sums as they think proper, as a reserve or reserves. These reserves will, at the discretion of the directors,
apply for any purpose they may be properly applied under the Jersey Companies Law, and pending this, may
at their discretion be employed in the business of the Company or be invested in such investments as the
directors may from time to time think fit.
The Board may, if authorised by an ordinary resolution of the Company, offer any holders of any particular
class or classes of shares the right to elect to receive further shares (whether or not of that class), credited as
fully paid, instead of cash, in respect of all or part of any dividend, in accordance with the Articles of Association.
Dividend policy
The Board has adopted a policy of paying a growing dividend and distributing a majority of the Group’s cash
profits over time. The Company was incorporated on 21 December 2021. The Group did not declare or pay
dividends to equity shareholders of the Group during the year ended 31December 2024 (Dec-23: nil) – see note
29(d) on page 230.
Proposed 2024 dividend
The Board is proposing a dividend of €0.21 per share and will therefore recommend this, subject to the
approval of shareholders, at the Company’s AGM on 20 May 2025. If approved, the dividend will be paid on
18June 2025.
Change of control
On 8 June 2021, Capital Investors Europe PBI Limited issued private placement notes of €1.25bn with fixed euro
interest rates. The loan notes are measured at amortised cost and bear interest at a weighted average of 1.77%
per annum and had a weighted average maturity of 15 years. The Group issued €200m of additional private
placement notes in June 2024. The Notes may be redeemed at the option of the Note Issuer upon payment of
a make whole premium. Upon a change of control transaction, the Notes may be redeemed at the option of
the holders at par.
CVC Management Holdings II Limited, as borrower, is party to a RCF agreement pursuant to the terms of
which the lenders thereunder have made available €800m of commitments which can be borrowed by CVC
Management Holdings II Limited on a revolving basis. The RCF matures in 2028. The borrower may prepay
anyloans (together with accrued interest and any applicable break costs) which are outstanding or cancel
thecommitments under the RCF agreement with three business days’ notice to lenders. A change of control
transaction would be an event of default under the RCF agreement and, with the consent of at least 50% of
the lenders, the agent would be entitled to terminate the commitments and/or declare all loans outstanding
due and payable.
Restrictions on transfer of shares
Various lock-up deeds were put in place with effect from Admission, restricting the transfer of shares by current
and former employees of the CVC Network and the independent non-executive directors for certain periods
oftime from Admission. You can find more information on these lock-up deeds in Part 16 of the Prospectus,
which is available at www.cvc.com/shareholders/ipo-documents.
Restrictions in respect of Designated Persons
The Articles of Association contain provisions empowering the Company to apply certain restrictions and
takecertain actions in relation to shares in respect of which the Company believes the holder is or may be
aDesignated Person. Further information can be found in Part 14 of the Company’s Prospectus which can
befound at www.cvc.com/shareholders/ipo-documents.
The CVC Long Term Incentive Plan
On 26 April 2024, the General Meeting approved the CVC Long Term Incentive Plan (LTIP). All employees
ofthe Company and its subsidiaries (including executive directors) will be eligible to participate in the LTIP
atthe discretion of the Remuneration Committee, up to a total amount of 5% of the issued share capital
ofthe Company. The purpose of the LTIP is to provide long-term incentives to employees of the Company
andits subsidiaries, and to executive directors, which are linked to value creation for shareholders and, where
appropriate, the achievement of certain long-term strategic and financial goals through a variety of awards
designed to attract, retain and motivate the best possible workforce. In addition, the LTIP aims to afford
employees of the Company and its subsidiaries, and executive directors, the opportunity to acquire and
maintain ownership of shares, thereby strengthening and aligning their concern for the interests of the
Company and its stakeholders.
In note 8 ‘Share-based compensation plans’ to the consolidated financial statements, details of the various
awards are set out.
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CVC Capital Partners plc Annual Report 2024
Annual general meetings of shareholders
General meetings, including the Company’s AGM, are governed by the Company’s Articles of Association.
TheCompany will hold a general meeting as its AGM within the period of six months beginning with the day
following its accounting reference date (in addition to any other meetings held during that period), at a time
and place as may be determined by the directors. The Company’s first AGM will take place at 09.00 (BST) on
Tuesday 20 May 2025 at the Radisson Blu Waterfront Hotel, Rue De L’Etau, St Helier Jersey. The notice of meeting
will be published alongside this Annual Report and Accounts and is available at www.cvc.com/shareholders/
shareholder-information/agm.
Agenda
The agenda for the AGM shall include:
– consideration of the Annual Report and Accounts for the year ended 31 December 2024;
– the declaration of a dividend;
– the Remuneration Report of the members of the Remuneration Committee for an advisory vote;
– the reappointment of the Company’s independent auditor;
– the reappointment of directors; and
– the approval of various capital-related resolutions.
Notice of General Meeting
The Board of directors shall convene a General Meeting of Shareholders by giving notice at least fourteen (14) clear
days before the meeting. The notice shall include the agenda of the meeting, the place and time of the meeting,
as well as the procedure for participation in the meeting. The Board of directors is obliged to convene a general
meeting of shareholders at the request of shareholders (including EI Holder(s)) who together own at least 10% of
the issued share capital. Such meeting shall be held within two months of receipt of the request. Where there are
joint EI holders, the means by which such joint EI Holders provide their voting instructions will be determined by the
rules of Euroclear Nederland or its attorney or proxy in respect of such vote, providing that no interest in shares will
entitle the relevant EI Holder(s) to provide more than one voting instruction in respect of any one share.
Record date
For each general meeting of shareholders, a record date for the exercise of the voting rights and participation in
the meeting is provided. The record date will be included in the notice of meeting, along with information on those
entitled to attend and vote at the meeting. Only persons who are shareholders on the record date may participate
and vote in general meetings of shareholders. The record date for the AGM on 20 May 2025 is 16 May 2025.
Shareholder rights
Subject to any special rights, restrictions or prohibitions as regards voting being attached to any share as may be
specified in the terms of issue thereof or the Articles of Association, every shareholder present in person or by proxy
will have one vote for each share of which they are a holder (with EI Holder(s) entitled to provide voting instructions
as described above) provided that no more than one vote will be attributable to each share. In the case of joint
holders of any share, such persons will not have the right of voting individually in respect of such share but will elect
one of their number to represent them and to vote whether in person or by proxy in their name. Where there are
joint EI Holders, the means by which such joint EI Holders provide their voting instructions will be determined by the
rules of Euroclear Nederland or its attorney or proxy in respect of such vote providing that no interest in shares will
entitle the relevant EI Holders(s) to provide more than one voting instruction in respect of any one share.
Voting
At any general meeting, all resolutions put to the vote of the meeting will be decided on a poll.
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CVC Capital Partners plc Annual Report 2024
The directors are responsible
for preparing the financial
statements in accordance with
applicable law and regulations.
Applicable company law requires the directors to
prepare financial statements for each financial year.
As such, the directors have prepared the annual
consolidated financial statements of the Group in
accordance with, and conforming to, International
Financial Reporting Standards as adopted by the EU
(IFRS), as issued by the International Accounting
Standards Board (IASB), the requirements of the
Dutch Financial Supervision Act (Wet op het
Wetboek), the applicable provisions of the Dutch Civil
Code (Burgerlijk Wetboek) and the Companies
(Jersey) Law 1991. The directors have also prepared
the Company’s stand-alone financial statements in
accordance with IFRS and the requirements of the
Companies (Jersey) Law 1991.
Under applicable law and regulations, the directors
are also responsible for preparing a Board and
Governance Report on pages ## to 85 (Board Report)
that complies with that law and those regulations.
Inaccordance with Article 5:25(c) paragraph 2 sub c
of the Financial Markets Supervision Act, each of
thedirectors confirms that, to the best of his or
herknowledge:
i. the annual financial statements present a true
and fair view of the assets, liabilities, financial
position and profit or loss of the Company and
the undertakings included in the consolidation
taken as a whole; and
ii. the Board Report presents a true and fair view
ofthe situation on the balance sheet date, the
course of business during the financial year of
the Company and the undertakings included
inthe consolidation taken as a whole, together
with a description of the material risks faced by
the Company.
International Accounting Standards require that
financial statements are presented fairly for each
financial year including the company’s financial
position, financial performance and cash flows.
Thisrequires the faithful representation of the
effectsof transactions, other events and conditions
in accordance with the definitions and recognition
criteria for assets, liabilities, income and expenses
setout in the International Accounting Standards
Board’s ‘Framework for the preparation and
presentation of financial statements’. In virtually all
circumstances, a fair presentation will be achieved
by compliance with all applicable IFRSs. However,
directors are also required to:
– properly select and apply accounting policies;
– present information, including accounting policies,
in a manner that provides relevant, reliable,
comparable and understandable information;
– provide additional disclosures when compliance
with the specific requirements in IFRSs are
insufficient to enable users to understand the
impact of particular transactions, other events
andconditions on the entity’s financial position
and financial performance; and
– make an assessment of the company’s ability
tocontinue as a going concern.
The directors are responsible for keeping proper
accounting records that disclose with reasonable
accuracy at any time the financial position of the
company and enable them to ensure that the
financial statements comply with the Companies
(Jersey) Law 1991.
By order of the Board.
Fred Watt
Director
19 March 2025
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Board Responsibility Statement
CVC Capital Partners plc Annual Report 2024
Sustainability
Report
In this section:
Sustainability priorities 87
Sustainability Statement:
General disclosures
94
Environmental information
E1 Climate change:
buildingclimate resilience
120
EU Taxonomy 132
Social information
S1 Own workforce: attracting,
developing and retaining talent
139
S2 Workers in the value chain 148
Governance information
G1 Business conduct:
ensuringrobust governance
and accountability
152
Information security
anddataprivacy
156
Investing responsibly for
long-term growth
159
Assurance Report of the
Independent Auditor
(ofnon-financial indicators)
165
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CVC Capital Partners plc Annual Report 2024
We focus on maximising
returns by creating sustainable
value for our stakeholders.
We continued to refine our Group sustainability
strategy during 2024 within the four strategic
priorities set out to the right, which were reaffirmed
through our double materiality assessment. More
information about the progress we’re making with
respect to each of these four priorities is set out on
the following pages.
We’ve incorporated two focus areas of the
sustainability strategy – Talent and diversity, equity
and inclusion, and Portfolio emissions engagement
– as performance criteria under the executive
directors’ long-term incentive plan (LTIP) to further
demonstrate our commitment to execution. See
more details in the Remuneration Report on page 73.
The next four pages set out our 2024 achievements
and future plans in each of these strategic priorities.
Investing responsibly
forlong-term growth
Proactively future-proof
our investment portfolio by
integrating material
sustainability factors.
Transparency
Due diligence
Portfolio engagement
Attracting, developing
and retaining talent
Foster a culture of high
performance through an
inclusive and business
aligned people strategy.
Employee engagement
Employee well-being
Talent and diversity,
equity andinclusion
1
Building climate
resilience
Proactively manage
transitional and physical
risks and opportunities.
Managing climate risk
Operational emissions
reduction
Portfolio emissions
engagement
1
Ensuring robust
governance and
accountability
Embed and maintain
rigorous governance and
control processes across
the business.
Business ethics
andconduct
Information security and
data privacy
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Sustainability priorities
CVC Capital Partners plc Annual Report 2024
Creating sustainable value
Strategic prioritiesOverarching goalsFocus areas
1 We have incorporated the focus areas of Talent and diversity, equality and inclusion, and Portfolio emissions engagement into the
executive directors’ LTIP to further demonstrate our commitment to executing our sustainability strategy.
Investing responsibly
for long-term growth
We seek to apply a
consistentset of responsible
investment principles in
eachof our asset classes.
In line with our Group sustainability strategy, we
focus on three areas within responsible investment:
Transparency
We aim to be transparent, and promote best
practice in our approach to responsible investment,
which is governed by our Group Responsible
Investment Policy.
Due diligence
We seek to consider and document material
sustainability matters as part of due
diligenceanddecision-making onnewinvestments.
Portfolio engagement
During the holding period and through to exit,
wherethere is the opportunity to do so, we carry
outconsistent, structured engagement with our
portfolio companies to monitor their sustainability
performance and encourage transformation,
improved performance, and risk management.
Developments in 2024
During 2024, we:
– further developed the responsible investment
governance framework, with the Board and
Sustainability Committee approving a Group
Responsible Investment Policy;
– refined our processes to ensure we can sufficiently
evidence our sustainability due diligence for new
investments in Private Equity, Credit and
Secondaries for reporting purposes; and
– developed the CVC Sustainability Index for Private
Equity, a tool for assessing sustainability maturity
of portfolio companies, as well as being a basis
forengagement.
Future plans
In 2025, we plan to:
– formally implement the CVC Sustainability Index to
provide a structured approach for engagement with
Private Equity and Infrastructure investments; and
– implement processes to fully evidence monitoring
of sustainability due diligence for new investments
in Infrastructure.
KPIs
Principles for Responsible Investment (PRI)
scores as at 31 December 2024
Private
Equity Credit Secondaries Infrastructure
Policy,
governance
and
strategy
4/5 4/5 4/5 5/5
Asset-
specific
1
5/5 4/5 3/5 5/5
Confidence
building
measures
4/5 4/5 4/5 5/5
Percentage of new investments
undergoingsustainability due diligence
during the year ended 31 December 2024
100%
100%
Private Equity Secondaries
95%
from 2025
Credit Infrastructure
2
Percentage of investments participating in
annual sustainability monitoring programmes
during the year ended 31 December 2024
89%
91%
Private Equity
3
Secondaries
99%
84%
Credit Infrastructure
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Sustainability priorities continued
CVC Capital Partners plc Annual Report 2024
1 Some strategies are given more than one score in this category.
Thescoreshown here represents the most representative score for
thatstrategy.
2 Infrastructure carried out sustainability due diligence in 2024, but
did not sufficiently evidence to report this metric. To be reported
from 2025.
3 Percentage of investments responding to annual Sustainability Survey.
DKV Mobility
In 2019, CVC Funds invested in DKV Mobility, a leading platform
forinternational mobility services, exiting in 2024. During that time,
DKV Mobility enhanced its sustainability efforts, earning a Platinum
Medal from EcoVadis and ranking in the 99th percentile in 2024,
upfrom the 50th in 2020. Sustainalytics also ranked it in the top 1%
ofits industry group.
Advancing sustainability in DKV Mobility
During CVC’s investment, DKV Mobility cut Scope 1, 2 and eligible
Scope3emissions by over 50%, achieving its Green Pledge climate target.
In 2024, it set new emission targets, which were validated by the SBTi.
DKV Mobility also expanded its electric vehicle (EV) network by over 260%
in two years to a network of 633,000 charge points in Europe by 2023,
and grew its EV charge card programme from 68,000 to 592,000 cards.
A CVC-funded Planet & People Grant also supported the development
ofa tool to help customers track and reduce fleet emissions. These
advancements highlight the value of strategic sustainability investment,
positioning DKV Mobility as a leader in responsible mobility solutions.
EcoVadis percentile EV charge cards (2023)
99% 592,000
Key information Value creation focus area
Region: Europe
Sector: Mobility services
Strategy: Europe / Americas
Fund: VII
www.dkv-mobility.com/uk
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Sustainability priorities continued
CVC Capital Partners plc Annual Report 2024
“At DKV Mobility, our
purpose is to drive the
transition towards an
efficient and sustainable
future of mobility.
During our time with
CVC, we successfully
embedded sustainability
into our core processes
and accelerated progress
in all dimensions
of sustainability. ”
Marco van Kalleveen
CEO
Attracting, developing
and retaining talent
As a people-based business,
our success is underpinned
byattracting, developing and
retaining world-class talent.
We aim to create an environment where our people
can thrive by treating our people with respect,
creating opportunities for learning and development,
and showing consideration for health and wellbeing.
In 2024, we took the opportunity to refresh our
people strategy, leading to the following renewed
focus areas:
Employee engagement
We employ various mechanisms to ensure that
ourpeople’s voices are heard and reflected in
business strategies.
Employee wellbeing
We aim to promote a culture that supports the
physical, mental, social and emotional wellbeing
ofeach individual employee across the globe.
Talent and diversity, equity and inclusion
We are committed to providing an open and
inclusive work environment for all, and we value
therichness of diverse perspectives and experiences.
Developments in 2024
During 2024, we:
– refreshed our people strategy and set two new
ambitions relating to the representation of women
across our business;
– strengthened our inclusive culture through
employee-initiated networks, inclusive leadership
training and events. For example, we celebrated
International Women’s Day and Pride Month, and
provided targeted training for new promotes and
managers on inclusive leadership;
– responded to gender disparity within investment
teams by working with organisations that support
women in the private equity industry, including
Level 20 and BVCA; and
– enhanced support for employees navigating
challenging situations, including by enhancing
ourformal grievance mechanisms.
Future plans
In 2025, we plan to:
– design an intervention programme to enable
highpotential individuals to excel;
– conduct the employee survey to reflect our
refreshed people strategy;
– enhance support for women investment
professionals through networks and targeted
leadership intervention and relevant training; and
– finalise and implement human rights guidelines.
KPIs
Women across the business
as at 31 December 2024
35%
Women in senior management
as at 31 December 2024
25%
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Sustainability priorities continued
CVC Capital Partners plc Annual Report 2024
Building climate
resilience
By proactively managing
material climate change
risksand opportunities,
bothphysical and transition,
we seek to create long-term
valuefor our investments
andstakeholders.
We prioritise three focus areas:
Managing climate risk
We continue to evolve our understanding of the
transition and physical risks both in our own
operations and in our portfolio.
Reducing our operational emissions
By setting greenhouse gas (GHG) emission reduction
targets and improving data accuracy, we are
demonstrating that we are supporting the transition
to a lower-carbon economy.
Engaging with our portfolio on GHG emissions
In our role as manager and adviser to the funds’
investment portfolios, we encourage investee
companies to improve the quality and accuracy of
the climate data they report and set decarbonisation
targets where relevant, and where there is the
opportunity to do so.
Developments in 2024
During 2024, we:
– implemented improved software for tracking
GHGemissions;
– sourced renewable energy and purchased
EnergyAttribute Certificates (EACs);
– purchased carbon credits representing the
volumeof our unabated emissions; and
– continued to focus on our Climate Action
Accelerator Initiative for Private Equity
portfoliocompanies.
Future plans
In 2025, we plan to:
– finalise and approve our Climate Change Policy;
– source renewable energy and purchase EACs;
– purchase carbon credits; and
– continue to focus on our Climate Action
Accelerator Initiative for Private Equity
portfoliocompanies.
KPIs
Scope 1 and 2 operational emissions reduction
2019-2024
65%
Proportion of eligible Private Equity portfolio
companies with validated science-based
targets as at 31 December 2024
19%
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Sustainability priorities continued
CVC Capital Partners plc Annual Report 2024
Razer
A global consumer-electronics business based in Singapore,
Razervalidated its SBTi targets in 2024 as part of our
ClimateActionAccelerator Initiative.
Holistic approach reaps results for Razer
Razer has integrated sustainability into their brand and also into their
engagement with retail and consumers. We awarded Razer a Planet &
People Grant, which they used to support their eco-labelling initiative.
Razer’s products were awarded the prestigious UL Solutions UL2710
ECOLOGO, meaning they are certified as having reduced environmental
impact, taking on a holistic life cycle approach. This qualifies Razer’s
products for preferential listing on Amazon, leading to an increase
inorganic traffic to their product pages exceeding 60% – a real return
oninvestment in sustainability.
Reduced
environmentalimpact
Increase in
organic traffic
Achieved
ECOLOGO UL2710
60%
Key information Value creation focus area
Region: Asia
Sector: Consumer
Strategy: Asia
Fund: V
www.razer.com
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Sustainability priorities continued
CVC Capital Partners plc Annual Report 2024
“Sustainability and
business objectives
donʼt have to be at
odds – in fact, they can
complement each other.
Our partnership with
CVC and UL Solutions
is a testament to that.
Today, Razer products
have seen a 60%+ surge
in organic traffic to our
product pages, driving
higher conversions,
enhanced marketing
impact, and sustainable
revenue growth.”
Kenneth Ng
Global Sustainability Lead
Ensuring robust
governance and
accountability
We recognise the importance
of maintaining rigorous
governance and control
processes across our business.
Our sustainability strategy guides us to focus on:
Business ethics and conduct
Business conduct is a critical topic for our business
and a material sustainability topic for our
stakeholders. As such, we have a strong framework
of control and seek to ensure our conduct is of the
highest standard.
Information security and data privacy
As a global private markets manager, information
security is critical for CVC and our stakeholders.
Developments in 2024
During 2024, we:
– embarked on a journey comprising several
initiatives to enhance, formalise and mature
ourgovernance and control structures,
includingrestructuring the governance of
riskandcompliance from a culture and
conductperspective;
– aligned our information security management
systems to the global ISO 27001:2022
frameworkto improve information security
anddata privacy; and
– provided information security and data privacy
training to all employees and users globally.
Future plans
In 2025, we plan to:
– build on the newly restructured governance
ofriskand compliance by reviewing our culture
and conduct; and
– continue to mature and build on existing
information security controls.
KPIs
Completion rate of issued compliance
attestations for the year ended
31December2024
100%
100%
Private Equity Secondaries
100%
100%
Credit Infrastructure
Completion rate of information security
anddata privacy training for the year ended
31December 2024
99%
99%
Private Equity and
Credit
1
Secondaries
100%
Infrastructure
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Sustainability priorities continued
CVC Capital Partners plc Annual Report 2024
1. Credit reported together with Private Equity, above.
Sustainability
Statement:
General
disclosures
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CVC Capital Partners plc Annual Report 2024
Basis for preparation
BP 1 General basis for preparation
ofthe Sustainability Statement
Recognising our overarching sustainability vision of
maximising returns by creating sustainable value for
our stakeholders, we are pleased to present our 2024
Sustainability Statement. Although the European
Corporate Sustainability Reporting Directive (CSRD)
has not been transposed and implemented in Dutch
law as at the publication date, CVC has prepared
this Sustainability Statement in accordance with
thecurrent version of the European Sustainability
Reporting Standards (ESRS) adopted by the European
Commission (the Commission) on 31 July 2023.
The Commission proposed changes to the CSRD
on26 February 2025 as part of a wider package
ofsimplification proposals for EU sustainability
reporting (including a substantial limitation in
scopeand deferral in timing) and due diligence
(the‘Omnibus Proposal’) and announced that it
willpublish a separate Delegated Act to revise the
current ESRS for companies in scope of the CSRD.
Therefore, the scope and scale of the sustainability
information contained in this report may change in
the future and evolve including being substantially
reduced, or no longer being made available,
depending on the Dutch implementing law, any
additional guidance becoming available and any
legislative changes to the CSRD and the ESRS in the
Omnibus Proposal along with practices that may
develop in the market.
We recognise the ambition of the new standards and
believe that by considering material sustainability
matters within our own operations as well as our
value chain, we can make better-informed decisions
and build stronger and more resilient businesses,
contributing to the long-term success of our business
and the investments we make.
2024 was a year of significant change for CVC, in
which we listed our business, finalised the acquisition
of CVC Secondary Partners and acquired CVC DIF.
The period covered by this Sustainability Statement is
1January 2024 to 31 December 2024. It is prepared on
a consolidated basis for CVC Capital Partners plc and
its subsidiaries, referred to in this report as ‘the Group’
or ‘CVC’, and consisting of the Private Equity, Credit,
Secondaries and Infrastructure strategies. The scope of
consolidation is aligned with the financial statements,
incorporating CVC Secondary Partners from 1 January
2024, CVC Credit from 15 April 2024 and CVC DIF
from 1 July 2024. You can find more information on
the transactions in the ‘Significant transactions’ section
in the Financial Review on page33.
In presenting this report, we provide transparency
ofour performance and management of material
sustainability topics as they relate to our own
operations (the ‘corporate’ function) and also as they
relate to our role as a leading global private markets
manager. See ‘Investing responsibly for long-term
growth’ on page 159 to learn more about our
portfolio engagement and management of
sustainability topics within our investment processes.
We have considered sustainability matters identified
in our corporate function and how they create
material impacts, risks and opportunities for key
stakeholders of the Group. We have also considered
impacts, risks and opportunities stemming from our
value chain, which is defined in ‘Strategy, business
model and value chain’ on page 98. This includes the
operations of portfolio companies and third-party
General Partners. The process for identifying and
assessing material impacts, risks and opportunities
isexplained in further detail on page106.
We have not used the optional exemption to omit
material sustainability information corresponding
tointellectual property nor the optional exemption
toomit disclosure of matters in the course of
negotiation from this Sustainability Statement.
We have engaged our auditors, Deloitte LLP, to
perform a limited assurance engagement on this
Sustainability Statement. No metrics disclosed here
are assured by an external body other than the
assurance provider.
BP 2 Disclosures in relation
tospecificcircumstances
Use of transitional and phase-in provisions
We have used the following transitional provisions
inthis report.
Value chain: we are not disclosing on the following
metrics for up to the first three years of reporting:
E1-5 Disaggregation of non-renewable energy
consumption between fossil fuel and nuclear
sources;and S2-5 Metrics relating to workers
inthevalue chain.
Comparative information: we are not disclosing
comparative metrics for this first year of reporting.
Phased-in disclosure requirements: we have not
disclosed information corresponding to the disclosure
requirements of S1-11, S1-12, S1-13 or S1-15 for this first
year of reporting.
Sources of measurement uncertainty
The quantification of the decarbonisation levers
inour transition plan (see ‘E1-1 Transition plan’ on
page120) are a source of measurement uncertainty,
as they are forecasting our position several years in
the future, based on assumed growth of the business.
Incorporation by reference
Certain disclosures within this Sustainability
Statement are included by reference to other
disclosures in this Annual Report.
ESRS Disclosure requirement Referred to
GOV 1
20(a), 21
Composition and
diversity of Board
Governance
Report
GOV 1
20(b)
Reporting lines
toBoard
Governance
Report
GOV 3
29
Incentive schemes
andremuneration
policies linked to
sustainability matters
Remuneration
Report
S1-5 Certain own
workforcemetrics
Governance
Report
Forward-looking information
This document contains forward-looking statements
that are based on management’s assumptions,
judgements and estimates, with inherent uncertainty
and based on historical experience and various other
factors, and are believed to be reasonable under the
circumstances. Forward-looking statements speak
only as of the date they are made, and CVC assumes
no obligation to update or revise any forward-looking
statements or other information, whether as a result
of new information, future events or otherwise, other
than updates if necessary in future iterations of this
Sustainability Statement. Certain information
relating to sustainability goals, targets, intentions or
expectations, including on SBTi targets and related
timelines, is subject to change. Also, whilst we plan
tocontinue our progress towards fulfilling these
goals, targets, intentions or expectations, we can
give no assurance that we will meet them. Further,
statistics and metrics relating to sustainability
matters may be estimates and subject to
assumptions or developing standards (including
CVC’s internal standards and policies). Details of
estimates are presented throughout the report,
alongside the metrics to which they relate.
Highlights
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andPerformance
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Review
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Report
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Information
95
General disclosures
CVC Capital Partners plc Annual Report 2024
Governance
GOV 1 The role of the administrative,
management and supervisory bodies
At CVC, we oversee sustainability and
responsibleinvesting at the highest levels of
ourorganisation. The Board is responsible for
approving the sustainability strategy, following
therecommendation of the Partner Board, which
delegates day-to-day responsibility for sustainability
matters and risk management to the Sustainability
Committee and Group Risk Committee (GRC).
The composition and diversity of the Board is
disclosed in the Nomination Report on page 64.
As set out in their respective terms of reference, the
Sustainability Committee is responsible for assessing
and monitoring material sustainability impacts,
risksand opportunities; the GRC is responsible for
monitoring, managing and overseeing risk, including
sustainability risk, and overseeing business conduct;
and the Audit Committee provides oversight in
respect of the assurance, monitoring and review
ofpublished sustainability reporting.
See Corporate Governance structure on page 59
fordiagram showing reporting lines to Board.
The Sustainability Committee oversees the setting of
targets through periodic reviews of the sustainability
strategy, and the GRC monitors progress towards
certain targets through its quarterly dashboard,
thusmonitoring the management of the identified
impacts, risks and opportunities. The control
framework in respect of the identified impacts, risks
and opportunities is being further developed in 2025.
We also have an Diversity, Equity and Inclusion
Committee, which monitors ambitions relating
todiversity, equity and inclusion.
The Sustainability Committee and Group Risk
Committee together contain members with expertise
in the three material sustainability themes of
environment, social and governance, as well as
general risk management. In addition, the Head
ofSustainability and the Sustainability team possess
a significant number of years of sustainability
experience between them, and engage legal and
sustainability experts to provide ongoing support
where necessary.
GOV 2 Information provided to and
sustainability matters addressed by
theundertaking’s administrative,
management and supervisory bodies
Overall responsibility for the sustainability strategy
and sustainability risks lies with the Board.
Sustainability Committee
The Sustainability Committee is responsible for
designing, setting and recommending to the Partner
Board the sustainability strategy for the Group,
anddeveloping, reviewing and recommending
sustainability governance structures and reporting
lines. It is further charged with preparing an
assessment of our material sustainability impacts,
risks and opportunities, and the annual monitoring
ofthese. We will review the double materiality
assessment annually to assess whether the outcome
is still relevant. When required, we will reperform the
double materiality assessment.
The Sustainability Committee meets four times
ayear. In 2024, the Committee approved our
overallstrategy and approach to sustainability,
including approving the setting of a number of
sustainability-related targets. The Committee also
approved the approach and findings of the double
materiality assessment.
The Sustainability Committee reports on
sustainability matters to the Partner Board and the
Board, including during the annual sustainability
reporting process.
For a list of the material impacts, risks and
opportunities, addressed during the reporting period,
see SBM 3 ‘Material impacts, risks and opportunities’
on page 102.
Group Risk Committee
The GRC is an executive-level committee responsible
for designing and implementing the risk
management framework across the Group.
CVC’s risk management framework is set out in
‘Riskstrategy and governance, in the Risk overview
on page 43. Sustainability risks have been identified
as contributors to all principal risks, see ‘Principal risks
and uncertainties’ on page 47.
The team uses several tools to monitor and measure
risk profiles, including stress and scenario tests,
riskassessments, resilience programmes, key risk
indicators, horizon scanning, and risk-event analysis.
The quarterly risk dashboard includes updates on a
number of material sustainability topics, including
responsible investment, climate, people, business
conduct and information security.
GOV 3 Integration of
sustainability-related
performance in incentive schemes
Sustainability-related performance forms 10% of
theexecutive directors’ LTIP. See the ‘Performance
conditions attaching to LTIP awards’ section of the
Remuneration Report on page 77.
Further, within our Infrastructure strategy,
sustainability performance is linked to remuneration
via sustainability objectives specific to each team
and to the level of the individual within the firm.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
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Report
Sustainability
Report
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Statements
Additional
Information
96
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CVC Capital Partners plc Annual Report 2024
GOV 4 Statement on due diligence
The due diligence process with respect to material sustainability matters is reflected throughout this
Sustainability Statement as follows.
Element Section Page
Embedding due diligence
ingovernance, strategy
andbusinessmodel
How management addresses sustainability matters 95
Remuneration Report 73
Material impacts, risks and opportunities and their interaction
with our strategy and business model
102
Engaging with
affectedstakeholders
Stakeholder engagement 100
Double materiality assessment process 106
Identifying and assessing
negative impacts on people
and the environment
Double materiality assessment process 106
Material impacts, risks and opportunities and their interaction
with our strategy and business model
102
Taking action to address
negative impacts on people
and the environment
Negative impacts identified in the material topics of climate
change, workers in the value chain (and therefore responsible
investment) and information security management. No negative
impacts were identified with respect to our own workforce.
131
147
155
158
Tracking the effectiveness
ofthese efforts
Metrics and targets in the material topics of climate change,
workers in the value chain (and therefore responsible investment)
and information security management, the topics in which we
identified material potential negative impacts.
124
147
155
159
GOV 5 Risk management and internal controls over sustainability reporting
The sustainability reporting process has continued to evolve over the reporting period. Given the parallels
between financial reporting and non-financial reporting, the decision was taken to be consistent with the
Finance team’s approach to reporting, as the risks relevant to both reporting processes were assessed to be
similar. We therefore elected to report the majority of our non-financial data through a sustainability module
within the financial reporting system, benefitting from the in-built risk mitigation and controls offered in that
system. The Risk team expect to carry out a risk assessment specific to non-financial reporting in 2025.
Strategy
SBM 1 Strategy, business model
andvalue chain
Strategic considerations
CVC invests on behalf of our clients into seven
complementary strategies: Private Equity (including
Europe / Americas, Asia, Strategic Opportunities
andGrowth), Credit, Secondaries and Infrastructure,
totalling €200bn of assets under management.
Weconsider the investment portfolio of certain
strategies to be excluded from our value chain
according to the underlying relationship, see
‘Business model and value chain’, on page 98.
As a global leader in private markets, we aim to
maximise returns by creating sustainable long-term
value for our stakeholders in each of these strategies.
We seek to integrate the management of material
sustainability impacts, risks and opportunities within
our own operations and within our investment
approach. In the past year, we have continued
todevelop and refine our sustainability strategy.
In 2024, we acquired DIF Capital Partners, to create
CVC DIF, which manages our Infrastructure strategy,
and we rebranded Glendower Capital to CVC
Secondary Partners, which manages our
Secondariesstrategy.
We therefore operate and generate revenue under
four key segments, which align with ESRS sectors as
shown to the right. This revenue is consistent with the
management fees per strategy disclosed in note 6 of
the financial statements on page 205.
Strategy ESRS sector
Revenue
(management fees)
€000
Private equity Capital markets
861,035
Credit Credit institution
135,644
Secondaries Capital markets
94,994
Infrastructure Capital markets
89,561
Total
1,181,234
Our business is global, as reflected by the location
ofour people:
514
390
136
231
l
UK
l
Americas
l
Europe and South Africa
l
Asia
Our total of 1,271 employees on a headcount basis
isconsistent with the 1,258 full-time equivalent (FTE)
employees disclosed in ‘Key metrics and ratios’ in
theFinancial Review on page 37.
Highlights
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andPerformance
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CVC Capital Partners plc Annual Report 2024
Total 2024
headcount
1,271
Our sustainability strategy sets out four strategic
priorities for our business:
– investing responsibly for long-term growth;
– attracting, developing and retaining talent;
– building climate resilience; and
– ensuring robust governance and accountability.
As an adviser and manager of funds, the priority of
‘investing responsibly for long-term growth’ guides
our efforts to practise responsible investment.
Investing responsibly for long-term growth
We understand that responsible investment decisions
and the effective management of our fund portfolios
can create sustainable benefits for a broad range
ofstakeholders, including employees, customers,
suppliers, clients, shareholders and the community
and environment. We recognise that by encouraging
investments to implement effective sustainable
management practices, we can mitigate risks
andmaximise opportunities, with the objective
ofenhancing the long-term value of our portfolio.
Since becoming a signatory to the Principles for
Responsible Investment (PRI) in 2012
1
, we have
sought to align the implementation of our
responsible investment approach to these principles.
Our key goals in the strategic priority of investing
responsibly for long term growth are to achieve
100%sustainability due diligence of new investments
across all strategies, and to achieve targeted levels
ofengagement with our managed portfolio across
allstrategies on an ongoing basis. For more
information, see our ‘Investing responsibly for
long-term growth’ disclosure on page 159.
Business model and value chain
We seek to generate sustainable value for our clients
through the strategic oversight and management of
various investment funds. Our clients consist primarily
of public pension plans, sovereign wealth funds and
other institutional investors, as well as wealth investors,
that invest in funds we launch, advise and manage.
Our reputation and the revenues we generate depend
on our ability to advise and manage our funds,
including raising capital, formulating effective
investment strategies, identifying and acquiring debt
and equity investments in funds or portfolio companies
in different platforms and strategies, enhancing the
value of those investments, and ultimately exiting from
the investments and distributing returns.
For our services, we charge management fees and
performance fees. The performance fees depend
onthe increase in value of the underlying portfolio
companies, incentivising us to prioritise sustainable
growth and create value. Similarly, management
feescan grow with our ability to attract more clients,
which is strongly influenced by our reputation for
generating sustainable returns.
We initiated our double materiality assessment in
2023. As part of that process, we defined our value
chain, analysed our stakeholders and identified our
material sustainability impacts, risks and opportunities.
For more information on the double materiality
assessment process and outcome, see disclosures IRO-1
(process) on page 106, SBM-2 (stakeholder analysis)
on page 100 and SBM-3 (outcome) on page 102.
The concept of the value chain as defined by the
CSRD and how it applies to the private markets
industry is complex and is still subject to debate
byvarious parties outside CVC. Therefore, we
havetaken the following preliminary view of our
value chain for the purposes of CSRD reporting,
which may develop and change over time. This is
illustrated on the next page.
Employees: Our employees sit within ‘own
operations’ and are critical to our business. They
have the knowledge, skill-sets and time to provide
the advisory and management services to the funds,
as well as managing our business as a whole.
Clients: Clients, or fund investors, are part of our
value chain. Our clients are institutional investors,
pension funds, insurance and, increasingly, high net
worth individuals. We have robust KYC processes in
place to ensure good governance when considering
acceptance of a new client.
Investment funds: We consider these funds, though
not consolidated by CVC, to be integral to our value
chain. We categorise them into four platforms
aligned with our strategies: Private Equity, Credit,
Secondaries and Infrastructure, with each platform
housing funds with distinct investment mandates.
We hold a small percentage investment (up to 5%,
typically 1% to 2.5%) in most of these funds on our
balance sheet, see Note 34 to the financial
statements on page 241.
Portfolio companies: For Private Equity and
Infrastructure funds, we have determined that for the
purposes of the CSRD we maintain a direct business
relationship with the portfolio companies. According
to the latest guidance, we therefore consider these
part of our value chain. Our involvement may extend
to considering how portfolio companies engage with
their respective value chains (suppliers, customers
etc.), as this can affect the sustainable value they
can generate, but our involvement does not extend
to the activities of these second-order value chain
actors themselves. Assuch, only the ‘own operations’
of the portfolio companies themselves, including
their employees, are considered to be part of our
value chain.
Secondary funds: We have no direct connection with
the portfolio companies within the primary funds in
which our secondary funds invest. Instead, we have
abusiness relationship with the General Partners
managing the primary funds. Therefore, we consider
that the General Partners are in our value chain but
the underlying portfolio companies in the funds in
the Secondaries strategy are not.
Performing Credit funds: Our performing credit
funds manage and invest in Collateralised Loan
Obligations (CLOs). CLO managers manage a debt
portfolio by interacting with public debt markets
andintermediaries, not with the underlying portfolio
companies in whose debt they invest. Therefore, we
donot consider these portfolio companies to be part
ofthe value chain of the CLO manager, whether this
role is performed by ourselves or by an external CLO
manager. The decisions made by CLO managers
however, with respect to the debt investments made,
are connected to the fund through the value that the
CLO manager can generate for the clients. Therefore,
we consider that CLO managers, whether us or
anexternal CLO manager, arein our value chain,
along with the performing credit funds that make
theinvestments in the CLOs. As a CLO manager is
notconnected to the underlying portfolio companies,
the underlying portfolio companies are not considered
to be in our value chain.
Private Credit funds: Our private credit funds provide
loans to large and medium sized enterprises, following
a strategy set out in the investment documents agreed
with the investors into the fund. Arelationship exists
with the private credit fund to set out the terms and
nature of the investments to make, however, for the
purposes of the CSRD, we do not have a business
relationship with borrowers of the loans made by funds
in the same way that we have a business relationship
with portfolio companies in the other strategies,
bothin terms of voting rights and engagement with
management, nor with sponsors of the investment.
Highlights
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CVC Capital Partners plc Annual Report 2024
1 Private Equity became a signatory in 2012, Credit and
Secondaries in 2021 and Infrastructure in 2011.
Therefore, while we consider the private credit fund
to be in our value chain, we do not consider the large
and medium sized enterprises that receive loans
from the fund to be in our value chain for the
purposes of CSRD reporting.
Suppliers: Suppliers provide goods and services that
enable us to run our business and advise and manage
our funds. While we consider these suppliers to be part
of our value chain, the fact that they are primarily
large service organisations in established markets
means that their unmitigated impact on the
environment and society is expected to be low and
therefore less relevant to us than the value chain
linked to our investment portfolio.
CVC shareholders, lenders: Our Group shareholders
and lenders are a diversified selection of institutional
investors. We do not have significant dependencies
on one specific investor. Given their maturity, and
the regulation and scrutiny they are subject to, their
unmitigated impact on people, the environment,
and society is limited. There are no significant
lendersor shareholders with identifiable
characteristics that would indicate specific
materialtopics for consideration.
Regulators: We operate internationally in a highly
regulated sector and are therefore not dependent on
any given regulator. The role of regulators is to act on
behalf of people, society and the environment and
we contribute towards this through compliance with
their regulations. We therefore look through this
relationship to identify material impacts, risks and
opportunities and there are no material topics for
consideration directly resulting from our relationship
with the regulators.
Upstream Own Operations Downstream Further Downstream
Value
Chain
Boundary
Direct value chain
‘Corporate’ business
Employees
Suppliers
Regulators CVC
CVC shareholders, lenders
Indirect value chain
Asset Management or ‘Portfolio’ business
Clients Funds
Secondaries &
Performing Credit
(Non-CVC-CLO)
Private Equity
General partners, CLO managers
Portfolio companies of
Secondaries funds
Europe /
Americas
Organisations
Institutional
investors
Pension funds
Insurance
Borrowers (large, medium
enterprises) and portfolio
companies of Credit funds
Asia
Private &
Performing Credit
(CVC CLO)
High net worth
individuals
Strategic
Opportunities
Infrastructure
Portfolio companies of Infrastructure
funds, and their employees
Individuals
Value chain of
portfolio companies
(end consumer, suppliers)
Growth
Portfolio companies of Private
Equity funds, and their employees
Highlights
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andPerformance
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Review
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CVC Capital Partners plc Annual Report 2024
SBM 2 Interests and views of stakeholders
The following stakeholders have been identified as typical stakeholders for sustainability purposes, and we describe examples of how we may typically engage with them on an ongoing basis. At the time of the double
materiality assessment we were not a listed business, and thus CVC shareholders were not stakeholders at that time. However, we used proxies instead, recognising that the Group could be listed in the future. The purpose
ofour interactions with these stakeholders on sustainability topics is to keep them informed about our progress, and to hear their views on sustainability matters in terms of their relevance and importance.
Our double materiality process is set out in IRO 1 on page 106. As part of that process, we engaged with the stakeholders below, except for CVC shareholders, resulting in the refinement of our sustainability strategy, shown on
the right. In addition, the UK Governance Code requires the Board to understand the views of the Company’s keystakeholders and describe how the Board has considered their interests, and the matters set out insection 172
ofthe UK Companies Act 2006, in discussions and decision-making. See ‘Stakeholder engagement’ on page 78.
CVC shareholders Clients, fund investors CVC employees Portfolio companies
(Private Equity,
Infrastructure)
General Partners/CLO
managers (Performing
Credit, Secondaries)
Results
After our stakeholder
engagement process for
thepurposes of our double
materiality assessment, we
categorised the topics of interest
for our key stakeholders classified
as strategically important into
the following strategic priorities:
Who engages with them
Board members, CVC Investor
Relations and Head of Sustainability.
Who engages with them
CVC, through fund advisory and
management services, particularly CPS
and Sustainability team.
Who engages with them
Chief People Officer and People team.
Who engages with them
CVC including Sustainability team,
Operations team, investment
officersand others, liaising with
thoseresponsible for leadership
andsustainability within the
portfoliocompanies.
Who engages with them
CVC including Sustainability team,
Operations team, investment
officersand others liaising with
thoseresponsible for leadership
andsustainability within the
fundmanagers.
How
Through regular investor meetings,
events and communications.
How
Through regular investor meetings,
events and communications.
Interaction through the provision of
services in the form of fund creation
and fund advisory and management.
How
Through onboarding, training,
engagement with our People team and
periodic surveys.
How
Through regular communications
between CVC and portfolio
companies, including conferences,
events and individual meetings.
How
Through regular communications with
Secondaries and Performing Credit
fund managers.
Investing responsibly for
long-term growth
Attracting, developing
andretaining talent
Building climate resilience
Outcome of the
stakeholderengagement
Feedback is incorporated into debriefs
after meetings, events and
communications.
Outcome of the
stakeholderengagement
Sustainability reporting requirements
(including SFDR) of the stakeholders
are met and clients have a better
understanding of the value creation
and protection risks and opportunities
of the assets and how they are
beingmanaged.
Outcome of the
stakeholderengagement
Feedback, survey responses and
matters communicated to our People
team are considered and acted on
and, where appropriate, inform our
strategy and business model.
Outcome of the
stakeholderengagement
Responses and feedback are
considered in sustainability monitoring
and engagement programmes.
Outcome of the
stakeholderengagement
Responses and feedback are
considered in sustainability
monitoring.
Ensuring robust governance
and accountability
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CVC Capital Partners plc Annual Report 2024
The outcome of the
stakeholder engagement
exercise carried out as part
ofour double materiality
assessment process was
shared with the Sustainability
Committee and, ultimately,
the Board. We then refined
the sustainability strategy
inresponse.
This strategy was proposed by the Sustainability
Committee and approved by the Board in 2024.
Theexercise also confirmed the alignment between
our strategy and the sustainability concerns of
ourstakeholders.
Metrics relating to the highlighted focus areas
together form 10% of our executive directors’ LTIP,
asset out in the Remuneration Report on page 77.
Investing responsibly
forlong-term growth
Proactively future-proof
our investment portfolio by
integrating material
sustainability factors.
Transparency
Due diligence
Portfolio engagement
Attracting, developing
and retaining talent
Foster a culture of high
performance through an
inclusive and business
aligned People Strategy.
Employee engagement
Employee well-being
Talent and diversity,
equityandinclusion
1
Building climate
resilience
Proactively manage
transitional and physical
risks and opportunities.
Operational emissions
reduction
Managing climate risk
Portfolio emissions
engagement
1
Ensuring robust
governance and
accountability
Embed and maintain
robust governance and
control processes across
the business.
Business ethics
andconduct
Information security and
data privacy
Highlights
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CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
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Report
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Statements
Additional
Information
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CVC Capital Partners plc Annual Report 2024
Creating sustainable value
Strategic prioritiesOverarching goalsFocus areas
1 We have incorporated the focus areas of Talent and diversity, equity and
inclusion, and Portfolio emissions engagement into the executive directors’
LTIP to further demonstrate our commitment to executing our
sustainability strategy.
SBM 3 Material impacts, risks and opportunities and their interaction with strategy and business model
Below we set out the material impacts, risks and opportunities resulting from our double materiality assessment. The output from the double materiality assessment was a key input into the refresh of our sustainability strategy,
which was approved by the Board in 2024. The people ambitions, information security targets, and business conduct targets were refined to more closely match the identified impacts, risks and opportunities.
Impacts
Env.Imp.1 - Negative Climate change People and the environment are directly harmed over time as a result of global climate change
caused by the excessive release of greenhouse gas emissions due to human and business activity.
Topical Short/Medium
(One year)/(One to fiveyears)
Direct
Env.Imp.2 - Positive Climate change Meeting decarbonisation goals and targets will reduce a company’s overall carbon emissions,
benefitting the environment as a whole.
Topical Medium
(One to five years)
Direct
Env.Imp.3 - Negative Climate change A lack of disclosure means investors and other external stakeholders lack the information needed
to make informed decisions regarding an organisation’s approach to addressing climate change
risks and opportunities.
Topical Short/Medium
(One year)/(One to fiveyears)
Direct
Env.Imp.A - Negative Climate change An investment manager’s investee companies may not engage in the transition to a low-carbon
economy, continuing to contribute to climate change and the associated harm to the
environment and society. Their lack of engagement may have a further effect on their
stakeholders, including investors. These stakeholders rely on companies for information to make
informed decisions about mitigating the impacts of climate change including the impact on their
own targets.
Entity-specific Long
(More than five years)
Business Relationship -
manager of fund invested
in portfolio companies
Soc.Imp.1 - Positive Employee engagement Engaging with employees fosters a positive workplace environment where employees are treated
as individuals and their views are heard.
Topical Medium
(One to five years)
Direct
Soc.Imp.2 - Positive Employee wellbeing Employers have the opportunity to improve the overall wellbeing of their people on a day-to-day
basis, and to provide bespoke support to individuals in periods of professional and personal need.
Topical Medium
(One to five years)
Direct
Soc.Imp.3 - Positive Talent and diversity,
equity, and inclusion
A focus on inclusion helps ensure that people from all backgrounds have the opportunity to
succeed within an organisation, which contributes to a more just and equitable working
environment for all. Employee development equips people with the skills and knowledge
necessary for personal growth, career advancement and economic mobility.
Topical Short
(One year)
Direct
Soc.Imp.A - Negative Workers in the value
chain
Unidentified impacts on, and concerns of, employees in the portfolio companies, including those
impacting their human rights, are not identified or properly addressed leading to an impact on
these employees, including on their wellbeing.
Topical Short
(One year)
Business Relationship -
manager of fund invested
in employer
Gov.Imp.1 - Negative Information security
management
Employee and investor data may be accessed and used to the detriment of the individuals and
entities concerned by outside malicious actors.
Entity-specific Short
(One year)
Direct
Index Sustainability topic Description
ESRS topical/
entity-specific
Time horizon
(Short/Medium/Long) Involvement
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
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CVC Capital Partners plc Annual Report 2024
Risks
Env.Risk.1 Climate change A business is seen to have excessive greenhouse gas emissions (either directly or within its value
chain) compared to the market, impacting its reputation and hence ability to do business.
(Transition risk)
Topical Short/Medium
(One year)/(One to fiveyears)
n/a
Env.Risk.2 Climate change Goals and targets are inconsistent with the wider strategy of the business, leading to inefficient
allocation of business resources. (Transition risk)
Topical Short/Medium
(One year)/(One to fiveyears)
n/a
Soc.Risk.1 Employee engagement A less engaged workforce may see a decline in productivity and job satisfaction, and lead to
higher employee turnover.
Topical Short
(One year)
n/a
Soc.Risk.2 Employee wellbeing A decline in employee wellbeing may lead to unexpected leaves of absence, or negatively impact
employee productivity, which may limit the ability of a business to operate effectively.
Topical Short
(One year)
n/a
Soc.Risk.3 Talent and diversity,
equity, and inclusion
Employees who lack appropriate skills and training are more likely to make mistakes or exercise
poor judgement. A lack of diversity can reinforce systemic biases, limit innovation and may
negatively affect a company’s reputation.
Topical Short
(One year)
n/a
Gov.Risk.1 Business conduct Failure to identify or comply with regulatory obligations or expectations, including those relating
to anti-corruption and anti-bribery and insider trading, or failure to obtain or maintain requisite
permissions for activities conducted in different jurisdictions, could lead to regulatory censure,
fines or restrictions on activities.
Topical Short
(One year)
n/a
Gov.Risk.2 Information security
management
Failure to anticipate, detect or prevent a cyber-attack and subsequent loss of employee or
investor data may result in financial and reputational losses for a business.
Entity-specific Short
(One year)
n/a
Gov.Risk.3 Responsible investment Sustainability-related risks and potential impacts are not adequately identified in investments
leading to a downside risk either through direct valuation reductions, or through associated
reputational harm.
Entity-specific Short
(One year)
n/a
Index Sustainability topic Description
ESRS topical/
entity-specific
Time horizon
(Short/Medium/Long) Involvement
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
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Statements
Additional
Information
103
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CVC Capital Partners plc Annual Report 2024
Opportunities
Env.Opp.1 Climate change Goals and targets are considered sufficiently challenging by the market and are achieved
providing evidence to demonstrate that a business is reliable and able to progress its sustainability
and responsible investment strategies, leading environmentally and socially conscious clients to
be more likely to invest and therefore leading to potentially higher valuations or increased fund
raises. (Transition opportunity)
Topical Short/Medium
(One year)/(One to fiveyears)
n/a
Env.Opp.2 Climate change A company’s disclosures accurately communicate the sustainability leadership role of the
business encouraging greater engagement with external stakeholders and improving reputation.
(Transition opportunity)
Topical Short
(One year)
n/a
Soc.Opp.1 Employee engagement Engaging with employees improves productivity and job satisfaction and fosters loyalty, creating
a more high-performing workplace with lower employee turnover.
Topical Medium
(One to five years)
n/a
Soc.Opp.2 Employee wellbeing Employees will consider a company’s approach to wellbeing when making decisions about where
to work. Incorporating wellbeing into the overall employee experience maintains productivity and
improves a business’ ability to attract and retain employees.
Topical Medium
(One to five years)
n/a
Soc.Opp.3 Talent and diversity,
equity, and inclusion
A workplace that embraces diversity of thought and experience is expected to result in more
productive employees and a more stimulating and fulfilling environment for everyone. Further, it
is likely to enable a business to attract a broader talent base, giving increased access to higher
quality candidates.
Topical Short
(One year)
n/a
Gov.Opp.1 Responsible investment Sustainability-related opportunities are realised within an investment, increasing its value to the
investment manager and adviser, and their clients.
Entity-specific Medium
(One to five years)
n/a
Index Sustainability topic Description
ESRS topical/
entity-specific
Time horizon
(Short/Medium/Long) Involvement
As we have taken the transitional provision available in ESRS 1 to not disclose comparative information in this, the first year of preparation of the Sustainability Statement, we do not report changes to any of the material
impacts, risks and opportunities above.
Highlights
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CVC Capital Partners plc Annual Report 2024
Current and anticipated financial
effects of risks and opportunities
Investing responsibly for long-term growth
We generate our revenues through our investment
advisory and management activities. Our ability
togenerate these revenues is affected by market
expectations on the extent to which sustainability
isconsidered in these activities. Significant changes
in these market expectations may require us to
adapt our strategies and approach with respect
toinvestment, holding period, management and
realisation, to ensure that our products and services
remain attractive to current and potential clients.
This risk or opportunity does not have a discrete
one-off effect but rather a continuous trend of
improvement or deterioration in our financial results.
There is therefore no significant risk of a material
adjustment to our stated financial position or cash
flows within the next annual reporting period. As
described in ‘Investing responsibly for long-term
growth’ on page 159, we maintain a programme to
identify and mitigate risks and exploit opportunities,
with respect to how sustainability is considered within
our investment strategies. This ensures resiliency of
our business over the short-, medium- and long-term
as the expectations of stakeholders with respect to
responsible investment evolve over time.
For certain of our asset classes, our ability to
generate revenues is also impacted by our ability to
generate value in the portfolio companies that the
funds invest in and manage. It is not possible to
attribute a gain or loss of value to any one factor.
However, our activities to identify, respond to or
encourage actions in the portfolio companies,
whether performed with a focus on sustainability
ornot, will in aggregate have a material effect
onthevalue of the portfolio companies.
Attracting, developing and retaining talent
Our primary assets for generating value are our
people. Attracting, developing and retaining an
engaged, motivated and productive workforce
contributes significantly to our ability to generate
revenues. However, the risks and opportunities do
not have a discrete one-off effect but rather a
continuous trend of improvement or deterioration.
There is therefore no significant risk of a material
adjustment to our stated financial position or cash
flows within the next annual reporting period. As
described in ‘S1 Own workforce’ on page 139, we
maintain a programme to identify and mitigate or
exploit risks and opportunities with respect to our
workforce. This ensures resiliency of our business over
the short-, medium- and long-term as the needs of
the business and the expectations of our current and
future employees changes.
Building climate resilience
Given the nature of our business as an advisor
andmanager of funds, climate change is unlikely
tohave a material financial effect on CVC’s own
operations. Therefore, there is no significant risk
ofamaterial adjustment to our financial position
orcash flows within the next annual reporting
period.As described in ‘E1 Climate change’ on
page120, wemaintain a programme to ensure our
activitiesare aligned with climate-related market
expectations. This helps to ensure resiliency of our
business over the short-, medium- and long-term
asnew information emerges and the expectations
ofour stakeholders change.
Ensuring robust governance and accountability
Consistent with all companies, we are required to
comply with the laws and regulations in jurisdictions
in which we operate. Failure to do so may result in
fines and penalties as well as a loss of reputation.
Atthe most extreme, non-compliance can lead
torestrictions on our licence to operate. Loss of
information or services due to a cyber-attack can
also lead to loss of reputation or restrictions on
operations. The business incurs costs annually
tomaintain a culture of robust governance and
accountability, as well as costs to ensure regulatory
compliance and robust information security
management to prevent release of private data.
There is no significant risk of a material adjustment
to our stated financial position or cash flows within
the next annual reporting period. As described in
‘Governance information’ on page 152 we maintain
aprogramme to identify and mitigate risks with
respect to business conduct and information security
and data privacy. We regularly review our approach
to business conduct and information security
anddata privacy to ensure it is aligned to the
expectations of the external environment in which
weoperate. This ensures resiliency of our business
over the short-, medium- and long-term as the
regulatory environment in which we operate changes.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
105
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CVC Capital Partners plc Annual Report 2024
Impact, risk and
opportunity management
IRO 1 Process for identifying and
assessing material impacts, risks
andopportunities (IROs)
Methodology
Below, we have summarised the methodology we
used for determining the material impacts, risks and
opportunities for reporting. This is a new process
based on the requirements of the CSRD, however,
itis informed by assessments undertaken in prior
reporting periods.
Understanding the context
Boundaries
We defined our reporting boundary and operating
boundary as described in ‘Basis for preparation’ on
page 95.
Value chain
We identified our value chain as described in
‘Strategy, business model and value chain’ on
page97.
Stakeholder identification
We identified stakeholders across the Group and
theportfolio, and engaged with them as described
in‘Stakeholder views and interests’ on page 100.
Thisengagement occurred prior to the CVC DIF
acquisition. CVC DIF carried out its own CSRD-
aligned double materiality assessment, also prior
toCVC’s acquisition. After the acquisition, we
incorporated considerations of stakeholders at
CVCDIF (Infrastructure) in order to incorporate
considerations ofInfrastructureinto the
Group’sassessment.
Time horizons
We set time horizons based on the guidance in the
standards, i.e. short-term is one year, medium-term
is one to five years, long-term is over five years.
Consideration of our activities did not identify
anyreasons for why we should use alternative
timehorizons.
Identification of actual and potential IROs
related to sustainability matters
Provisional direct IROs
We then used the above inputs to identify a
provisional longlist of direct IROs, based on
management judgement.
Portfolio analysis for provisional value impacts,
risks and opportunities
Separately, we maintain an existing due diligence
process, described on the next page, for identifying
and assessing matters in the investment portfolio
we’ve determined to be part of our value chain,
including potentially material sustainability matters.
This process makes use of the IFRS Sustainability
Accounting Standard Board (SASB) guidelines to
identify areas of sustainability focus. We reviewed
these matters to provisionally identify material
impacts in the investment portfolio we’ve determined
to be part of our value chain, and the associated risk
and opportunity to the Group, and added them to
the longlist.
Determining material sustainability IROs
Impact materiality
We defined impact materiality, as shown in the
section ‘Materiality definitions’ below. We put each
ofscale, scope, irremediability and likelihood into
three categories reflecting how each might affect
thedecision-making of the affected population
astowhether an issue is material.
Financial materiality
We defined financial materiality, as shown in
thesection ‘Materiality definitions’ on page 108.
Likelihood and magnitude were each split into three
categories based on how each might affect the
decision-making of stakeholders assessing our
financial statements and considering whether an
issue is material. We used monetary amounts based
on different financial metrics including total assets,
total revenue and EBITDA as a reference point to aid
in the determination of what would be considered
financially material to stakeholders. We determined
a separate set of monetary reference points for
matters relating to the portfolio, based on the value
of AUM.
Qualitative double materiality assessment
When assessing whether impacts, risks and
opportunities were material, we performed
qualitative rather than quantitative assessments.
Where the matter is clearly material, we performed
only a high-level assessment. Where this is not the
case, we performed a more substantial analysis,
including inputs from internal and external experts.
Finalisation of material IROs
Based on the materiality assessments, we
determined the final list of material IROs. This
assessment included internal experts as well as the
Sustainability Committee, who contributed to the
final double materiality assessment. The final list of
material IROs across the business and the portfolio,
as approved by the Sustainability Committee, are set
out in ‘Material impacts, risks and opportunities, and
their interaction with strategy and business model’
on page 102.
Controls
The internal controls over this decision-making
process consisted of peer review, and reviews by the
Head of Sustainability and Sustainability Committee.
Reporting
Aggregation into topics
We then aggregated the material IROs for own
operations and the value chain, considering how
they were connected, to create topics aligned to
howthe business operates and how we advise and
manage the investment portfolio we’ve determined
to be part of our value chain.
Reporting
Finally, we report on the double materiality
assessment and its outcome in this
SustainabilityStatement.
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CVC Capital Partners plc Annual Report 2024
Assumptions
Exclusions from scope of double
materialityassessment
For the parts of our value chain summarised below,
we did not consider material IROs, including adverse
impacts, relevant to CVC and our stakeholders’
decision-making likely to arise. As such, we did not
perform a detailed assessment to identify material
IROs for the parts of the value chain described below.
Clients
Our clients are a diversified group of mature
investment practitioners and institutional investors.
We do not have specific influence over these clients,
either due to contractual terms or through their
relative size and importance. There are no identified
significant clients with identifiable characteristics
that would indicate specific material topics for
consideration.
Direct supplier base
Our direct supplier base is disaggregated and
focused in the large professional services sector.
Wedo not have specific influence over these
suppliers, either due to contractual terms or through
the relative size of our custom. There are no
identified significant suppliers with identifiable
characteristics indicating specific material topics
forconsideration.
Local communities
The communities where we operate do not depend
on CVC given the intangible nature of our operations
and therefore there is no heightened risk of negative
impact on them because of CVC’s operations.
Responsible investment as an entity-specific topic
The risk or opportunity to CVC of activities taking
place in the portfolio companies, including those
thatare sustainability-related, is principally linked
toeither a decrease or increase in the performance
of the asset, leading to a respective decrease
orincrease in performance fees. Alternatively,
adecline or improvement in CVC’s reputation could
lead to a respective decrease or increase in future
management fees. Through this analysis we
identified responsible investment as a material topic
for which a standard ESRS does not yet exist. We
have therefore disclosed on responsible investment
as an entity-specific topic, see page 159. This topic
describes the management of these sustainability-
related risks and opportunities.
IROs in the portfolio
In our role as an investment manager and adviser,
we do not directly manage the underlying activities
of portfolio companies or investments. This is the
responsibility of the portfolio companies themselves
and the impacts, risks and opportunities identified
byCVC, and any response to them, will reflect this.
Disclosure of risks and opportunities in the portfolio
are captured in the responsible investment topic.
We assessed the portfolio companies that we consider
to be part of our value chain (i.e. those in the private
equity and infrastructure asset classes) using a SASB
sector-based heatmap to identify actual and potential
impacts for the portfolio. The sector heatmaps of each
portfolio company were aggregated and weighted by
AUM to identify which topics are most relevant to the
portfolio as a whole.
In conducting the sector-based heatmap
assessment, we accounted for the fact that SASB
has a single materiality lens by supplementing the
assessment with the subject-matter expertise of
those responsible for engaging on sustainability
within the portfolio. We thus identified the topics
likely to present material IROs, and assessed these
topics for whether they did contain actual material
impacts, in the context of the relationship that we
have with those portfolio companies deemed to be
part of the value chain.
Due to the diversified nature of our portfolio,
alltopics in SASB are likely to be identified in
theassessment for at least some of the portfolio.
However, noting that the purpose of the CSRD is to
help in decision-making for stakeholders at the level
of the Group, only topics considered most relevant
tothe combined portfolio were deemed relevant for
identifying material IROs in the portfolio. In addition,
many of the portfolio companies that formed part
ofthe assessment have, or will have, their own
sustainability reporting requirements and will focus
on topics material to them in their own reporting.
Incorporation of CVC DIF
CVC DIF independently performed a double
materiality assessment during 2024, prior to
becoming part of the Group. We incorporated
thefindings without further engagement with
external stakeholders. Instead, we relied on the
workalready performed, with changes only in the
materiality definitions to enable alignment between
the different assessments.
Integration
Risk management
Our efforts to integrate sustainability risks and
opportunities into the overall risk management
process are ongoing. We anticipate this process
willcontinue throughout 2025.
Overall management integration
Identification and assessment of sustainability
IROsare partially integrated into business processes
through the existing sustainability materiality
assessment and reporting process, including
reviewand approval of reporting activities by the
Sustainability Committee and the Audit Committee,
as well as the due diligence process described above.
Managing each of the identified IROs falls to
theteam already responsible for the topic in
theorganisation.
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CVC Capital Partners plc Annual Report 2024
Materiality definitions
Impact materiality definitions Financial materiality definitions
Likelihood Scale Scope Irremediability
Financial
magnitude
Time horizon
At the time of assessment,
thelikelihood of the positive or
negative impact taking place.
At the time of assessment,
thisrepresents how grave the
negative impact is or how
beneficial the positive impact
isfor people, society or the
environment impacted.
At the time of assessment, this
represents the proportion of the
relevant population impacted.
For the corporate business the
relevant populations are those
directly affected by the specific
corporate business’s impact. For
the value chain the relevant
populations are those directly
affected by the aggregate of the
portfolio companies’ impact.
At the time of assessment, this
represents the extent to which
the impact can reasonably
beremediated through
restorative actions.
At the time of assessment,
thisrepresents the anticipated
financial effects on the
corporate business either
directly in the performance and
cash flows of the business or
through the impact on the
value chain, and hence the
ability of CVC to generate
returns, raise new funds and
attract new clients as a result
ofits engagement with, and
oversight of, the portfolio.
At the time of assessment,
thisrepresents the expected
timeframe during which the
impact, risk or opportunity
could or is expected to take
place at the severity or
magnitude described in
theassessment.
High Fundamental Systemic Full Large Long
More than 90% Fundamental to the
impactedparty
Majority of the population Impact is permanent Individually influences financial
decision-making
> 5yrs
Medium Important Specific Partial Moderate Medium
More than 50% Important to the
impactedparty
A large proportion
ofthepopulation
Impact may be remediated
tosome extent or may be
remediated on an ongoing basis
In aggregate with other
matters influences financial
decision-making
< 5yrs
Low Relevant Limited None Small Short
Less than 50% Relevant to the
impacted party
A small proportion
ofthepopulation
Impact may be remediated
withlittle or no effort
Limited influence on financial
decision-making
< 1yr
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CVC Capital Partners plc Annual Report 2024
ESRS 2: General disclosures
BP 1 General basis for preparation of the Sustainability Statement 95
BP 2 Disclosures in relation to specific circumstances 95
GOV 1 The role of the administrative, management and supervisory bodies 96
GOV 2 Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies
96
GOV 3 Integration of sustainability-related performance in incentive schemes 96
GOV 4 Statement on due diligence 97
GOV 5 Risk management and internal controls over sustainability reporting 97
SBM 1 Strategy, business model and value chain 97
SBM 2 Interests and views of stakeholders 100
SBM 3 Material impacts, risks and opportunities and their interaction with strategy and business model 102
IRO 1 Process for identifying and assessing material impacts, risks and opportunities 106
IRO 2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement 109
Reference Description Page Explanatory Notes
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andPerformance
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Review
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IRO 2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement
CVC Capital Partners plc Annual Report 2024
ESRS E1: Climate change
ESRS 2 GOV 3 Disclosure requirement related to ESRS 2 GOV 3 –Integration of sustainability-related performance in
incentive schemes
96, 120
E1-1 Transition plan for climate change mitigation 120
ESRS 2 SBM 3 Disclosure requirement related to ESRS 2 SBM 3 – Material impacts, risks and opportunities and their
interaction with strategy and business model
121
ESRS 2 IRO 1 Disclosure requirement related to ESRS 2 IRO 1 – Process for identifying and assessing material climate-
related impacts, risks and opportunities
122
E1-2 Policies related to climate change mitigation and adaptation 122
E1-3 Actions and resources in relation to climate change policies 123
E1-4 Targets related to climate change mitigation and adaptation 124
E1-5 Energy consumption and mix 125
E1-6 Greenhouse gas emissions 125
E1-7 Carbon removals and carbon-mitigation projects financed through carbon credits 130
Entity-specific metrics Reduction in absolute Scope 1 and 2 market-based GHG emissions in the operations of Private Equity and
Credit strategies since 2019
124, 131 The entity-specific metrics enable users to understand the undertaking’s
impacts, risks and opportunities in relation to environmental, social or
governance matters.
Percentage of eligible private equity and listed equity investments in the Private Equity strategy setting
SBTi validated targets
124, 131
EU Taxonomy disclosures
ESRS 1 8 EU Taxonomy disclosures 132
Reference Description Page Explanatory Notes
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andPerformance
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Review
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IRO 2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement continued
CVC Capital Partners plc Annual Report 2024
ESRS S1: Own workforce
ESRS 2 SBM 2 Disclosure requirement related to ESRS 2 SBM 2 – Interests and views of stakeholders 139
ESRS 2 SBM 3 Disclosure requirement related to ESRS 2 SBM 3 – Material impacts, risks and opportunities and their
interaction with strategy and business model
139
S1-1 Policies related to own workforce 140
S1-2 Employee engagement: processes for engaging with employees and employees’ representatives about
impacts
141
S1-3 Grievance mechanism: processes to remediate negative impacts and channels for employees to raise
concerns
142
S1-4 Actions: taking action on material impacts on own workforce, and approaches to mitigating material risks
and pursuing material opportunities related to own workforce, and effectiveness of those actions
142
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
144
S1-6 Characteristics of the undertaking’s employees 145
S1-9 Diversity metrics 146
S1-16 Remuneration metrics 146
S1-17 Incidents, complaints and severe human rights impacts 146
Entity-specific metrics Women across the business 144
The entity-specific metrics enable users to understand the undertaking’s
impacts, risks and opportunities in relation to environmental, social or
governance matters.
Women in senior management 144
Number of women in the role on the Board as CEO, CFO, chair or senior independent director 144
Minimum of 1/3 of Board members women and minimum 1/3 men 144
Employee engagement survey response rate 144
Employee engagement survey result 144
Reference Description Page Explanatory Notes
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andPerformance
Financial
Review
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IRO 2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement continued
CVC Capital Partners plc Annual Report 2024
ESRS S2: Workers in the value chain
ESRS 2 SBM 2 Disclosure requirement related to ESRS 2 SBM 2 – Interests and views of stakeholders 148
ESRS 2 SBM 3 Disclosure requirement related to ESRS 2 SBM 3 – Material impacts, risks and opportunities and their
interaction with strategy and business model
148
S2-1 Policies related to value chain employees 148
S2-2 Processes for engaging with value chain employees about impacts 149
S2-3 Processes to remediate negative impacts and channels for value chain employees to raise concerns 149
S2-4 Taking action on material impacts on value chain employees, and approaches to mitigating material risks
and pursuing material opportunities related to value chain employees, and effectiveness of those actions
149
S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
150
ESRS G1: Business conduct
ESRS 2 GOV 1 Disclosure Requirement related to ESRS 2 GOV 1 – The role of the administrative, supervisory and
management bodies
152
ESRS 2 IRO 1 Disclosure Requirement related to ESRS 2 IRO 1 – Description of the processes to identify and assess
material impacts, risks and opportunities
148
G1-1 Business conduct policies and corporate culture 152
G1-3 Prevention and detection of corruption and bribery 154
G1-4 Incidents of corruption or bribery 155
Entity-specific metrics Completion rate of compliance attestations issued to Active Employees during the reporting period 155 The entity-specific metrics enable users to understand the undertaking’s
impacts, risks and opportunities in relation to environmental, social or
governance matters.
Reference Description Page Explanatory Notes
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
112
General disclosures continued
IRO 2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement continued
CVC Capital Partners plc Annual Report 2024
Information security management
ESRS 2 MDR-P Policies adopted to manage material sustainability matters 156
ESRS 2 MDR-A Actions and resources in relation to material sustainability matters 157
ESRS 2 MDR-M Metrics in relation to material sustainability matters 157
ESRS 2 MDR-T Tracking effectiveness of policies and actions through targets 157
Entity-specific metrics
Percentage of users completing annual information security and data privacy training by deadline 157, 158 The entity-specific disclosure and metrics enable users to understand the
undertaking’s impacts, risks and opportunities in relation to
environmental, social or governance matters.
Phish prone score 157, 158
Responsible investment
ESRS 2 MDR-P Policies adopted to manage material sustainability matters 162
ESRS 2 MDR-A Actions and resources in relation to material sustainability matters 162
ESRS 2 MDR-M Metrics in relation to material sustainability matters 163
ESRS 2 MDR-T Tracking effectiveness of policies and actions through targets 163
Entity-specific metrics Principles for Responsible Investment scores 163, 164
The entity-specific disclosure and metrics enable users to understand the
undertaking’s impacts, risks and opportunities in relation to
environmental, social or governance matters.
Percentage of new investment where sustainability is considered 163, 164
Percentage participation in annual sustainability monitoring programmes 163, 164
Reference Description Page Explanatory Notes
Consideration of topics deemed not material:
E2,E3, E4, E5, S3, S4
Our preliminary own operations climate risk analysis,
described on page 121, includes an assessment of
biodiversity risk based on our site locations and
business activities. The output confirmed that
biodiversity is not a material topic for us. We have
therefore not identified any impacts, risks or
opportunities relating to biodiversity.
Given the nature of our assets, which predominantly
consist of office buildings in city locations, we have
not screened our site locations and business activities
to identify impacts, risks or opportunities relating to
pollution, water and marine resources, resource use
and circular economy, affected communities, or
consumers and end-users. See ‘Business model and
value chain’ on page 97.
Highlights
oftheYear
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andPerformance
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Review
Risk Overview Governance
Report
Sustainability
Report
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Statements
Additional
Information
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General disclosures continued
IRO 2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement continued
CVC Capital Partners plc Annual Report 2024
ESRS 2 GOV 1 Board’s gender diversity paragraph 21(d) Percentage by gender and other aspects of diversity that the undertaking considers. The board’s gender diversity shall be
calculated as an average ratio of women to men board members.
Y 96
ESRS 2 GOV 1 Percentage of Board members who are independent
paragraph 21(e)
Percentage of independent board members. Y 57
ESRS 2 GOV 4 Statement on due diligence paragraph 30 The undertaking shall disclose a mapping of the information provided in its Sustainability Statement about the due
diligence process.
Y 97
ESRS 2 SBM 1 Involvement in activities related to fossil fuel activities
paragraph 40(d)i
State revenue generated from this activity. N Not Material
ESRS 2 SBM 1 Involvement in activities related to chemical production
paragraph 40(d)ii
State revenue generated from this activity. N Not Material
ESRS 2 SBM 1 Involvement in activities related to controversial
weapons paragraph 40(d)iii
State revenue generated from this activity. N Not Material
ESRS 2 SBM 1 Involvement in activities related to cultivation and
production of tobacco paragraph 40(d)iv
State revenue generated from this activity. N Not Material
ESRS E1-1 Transition plan to reach climate neutrality by 2050
paragraph 14
The undertaking shall disclose its transition plan for climate change mitigation. Y 120
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks
paragraph 16(g)
When disclosing the transition plan for climate change mitigation a disclosure on whether or not the undertaking is
excluded from the EU Paris-aligned Benchmarks is required.
Y 120
ESRS E1-4 GHG emission reduction targets paragraph 34 The undertaking shall disclose the climate-related targets it has set. This includes: either as an absolute value or as a
percentage; include a target using intensity value if applicable: state whether they relate to Scope 1, 2, 3; targets should
exclude GHG removals; and state the base years for targets.
Y 124
ESRS E1-5 Energy consumption from fossil sources disaggregated by
sources (only high climate impact sectors) paragraph 38
Total energy consumption in MWh related to own operations from fossil fuel sources. Total energy consumption in MWh
related to own operations from renewable sources separating out hydrogen generated from renewable sources. Total
energy consumption in MWh related to own operations from nuclear sources.
N Not Material
ESRS E1-5 Energy consumption and mix paragraph 37 Total renewable energy production in MWh. Total non-renewable energy production in MWh. Y 125
ESRS E1-5 Energy intensity associated with activities in high climate
impact sectors paragraphs 40 to 43
Energy intensity based on net revenue. N Not Material
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 (ai) Gross Scope 1 GHG emissions in mtCO
2
e; (aii) percentage of Gross Scope 1 GHG emissions from regulated emission
trading schemes (bi) Gross Scope 2 market-based GHG emissions in mCO
2
e; (bii) Gross Scope 2 location-based GHG
emissions in mtCO
2
e; (c) Gross Scope 3 GHG emissions in mtCO
2
e for each category that is a priority for the undertaking;
and (d) total GHG emissions split by totals for market- and location-based GHG emissions.
Y 125
Requirement Description Material Page
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Information
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Datapoints derived from other EU legislation
CVC Capital Partners plc Annual Report 2024
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 The undertaking shall disclose its GHG emissions intensity (total GHG emissions in mtCO
2
e per net revenue). Provide a
reconciliation of revenue to the financial statements.
Y 125
ESRS E1-7 Carbon removals and carbon credits paragraph 56 Whether any public claims of GHG neutrality, explanation is required to be provided to what extent these use carbon
credits and how this has impacted their approach to setting this target.
Y 130
ESRS E1-9 Disaggregation of monetary amounts by acute and
chronic physical risk paragraph 66(a)
The monetary amount and proportion (percentage) of assets at material physical risk over the short-, medium- and long-
term before considering climate change adaptation actions; with the monetary amounts of these assets disaggregated by
acute and chronic physical risk.
N Not Material
ESRS E1-9 Location of significant assets at material physical risk
paragraph 66(c)
The location of significant assets at material physical risk. N Not Material
ESRS E1-9 Breakdown of the carrying value of its real estate assets by
energy-efficiency classes paragraph 67(c)
Breakdown of the carrying value of the undertaking’s real estate assets by energy-efficiency classes. N Not Material
ESRS E1-9 Degree of exposure of the portfolio to climate-related
opportunities paragraph 69
Including its expected cost savings from climate change mitigation and adaptation actions and the potential market size
or expected changes to net revenue from low-carbon products and services or adaptation solutions to which the
undertaking has or may have access.
N Not Material
ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR
Regulation (European Pollutant Release and Transfer Register)
emitted to air, water and soil, paragraph 28
Each pollutant listed in Annex II of Regulation (EC) No 166/2006 of the European Parliament and of the Council (European
Pollutant Release and Transfer Register ‘E-PRTR Regulation’) emitted to air, water and soil, with the exception of emissions
of GHGs which are disclosed in accordance with ESRS E1 Climate Change.
N Not Material
ESRS E3-1 Water and marine resources paragraph 9 The undertaking shall describe its policies adopted to manage its material impacts, risks and opportunities related to water
and marine resources.
N Not Material
ESRS E3-1 Dedicated policy paragraph 13 If at least one of the sites of the undertaking is located in an area of high-water stress and it is not covered by a policy, the
undertaking shall state this to be the case and provide reasons for not having adopted such a policy. The undertaking may
disclose a timeframe in which it aims to adopt such a policy.
N Not Material
ESRS E3-1 Sustainable oceans and seas paragraph 14 The undertaking shall specify whether it has adopted policies or practices related to sustainable oceans and seas. N Not Material
ESRS E3-4 Total water recycled and reused paragraph 28(c) Total water recycled and reused in m
3
. N Not Material
ESRS E3-4 Total water consumption in m
3
per net revenue on own
operations paragraph 29
The undertaking shall provide information on its water intensity: total water consumption in its own operations in m
3
per
million EUR net revenue.
N Not Material
ESRS 2 IRO 1 – E4 paragraph 16(a)i A list of material sites in its own operations specify the activities negatively affecting biodiversity sensitive areas. N Not Material
ESRS 2 IRO 1 – E4 paragraph 16(b) Whether it has identified material negative impacts with regard to land degradation, desertification or soil sealing. N Not Material
ESRS 2 IRO 1 – E4 paragraph 16(c) Whether it has operations that affect threatened species. N Not Material
Requirement Description Material Page
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Statements
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Information
115
General disclosures continued
Datapoints derived from other EU legislation continued
CVC Capital Partners plc Annual Report 2024
ESRS E4-2 Sustainable land / agriculture practices or policies
paragraph 24(b)
Adopted sustainable land / agriculture practices or policies. N Not Material
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph
24(c)
Adopted sustainable oceans / seas practices or policies. N Not Material
ESRS E4-2 Policies to address deforestation paragraph 24(d) Adopted policies to address deforestation. N Not Material
ESRS E5-5 Non-recycled waste paragraph 37(d) The total amount and percentage of non-recycled waste. N Not Material
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 The undertaking shall also disclose the total amount of hazardous waste and radioactive waste generated by the
undertaking, where radioactive waste is defined in Article 3(7) of Council Directive 2011/70/Euratom.
N Not Material
ESRS 2- SBM3 – S1 Risk of incidents of forced labour paragraph 14(f) Operations at significant risk of incidents of forced labour or compulsory labour considering both type of operation and
geographic area.
N Not Material
ESRS 2- SBM3 – S1 Risk of incidents of child labour paragraph 14(g) Operations at significant risk of incidents of child labour considering both type of operation and geographic area. N Not Material
ESRS S1-1 Human rights policy commitments paragraph 20 The undertaking shall describe its human rights policy commitments. Y 140
ESRS S1-1 Due diligence policies on issues addressed by the
fundamental International Labor Organisation Conventions 1 to 8,
paragraph 21
The undertaking shall disclose whether and how its policies with regard to its own workforce are aligned with relevant
internationally recognised instruments, including the UN Guiding Principles on Business and Human Rights.
Y 140
ESRS S1-1 Processes and measures for preventing trafficking in
human beings paragraph 22
The undertaking shall state whether its policies in relation to its own workforce explicitly address trafficking in human
beings.
N Not Material
ESRS S1-1 Workplace accident prevention policy or management
system paragraph 23
The undertaking shall state whether it has a workplace accident prevention policy or management system. N Not Material
ESRS S1-3 Grievance/complaints handling mechanisms
paragraph 32 (c)
Whether or not the undertaking has a grievance/complaints handling mechanism related to employee matters. Y 142
ESRS S1-14 Number of fatalities and number and rate of work-related
accidents paragraph 88(b),(c)
The number of fatalities as a result of work-related injuries and work-related ill health. N Not Material
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or
illness paragraph 88(e)
With regard to the undertaking’s employees, the number of days lost to work-related injuries and fatalities from work-
related accidents, work-related ill health and fatalities from ill health.
N Not Material
ESRS S1-16 Unadjusted gender pay gap paragraph 97(a) The gender pay gap, defined as the difference of average pay levels between women and men employees, expressed as
percentage of the average pay level of men employees.
Y 146
ESRS S1-16 Excessive CEO pay ratio paragraph 97(b) The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all
employees (excluding the highest-paid individual).
Y 146
Requirement Description Material Page
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oftheYear
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andPerformance
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Report
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Report
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Statements
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Information
116
General disclosures continued
Datapoints derived from other EU legislation continued
CVC Capital Partners plc Annual Report 2024
ESRS S1-17 Incidents of discrimination paragraph 103(a) The total number of incidents of discrimination, including harassment, reported in the reporting period. Y 146
ESRS S1-17 Non-respect of United Nations Guiding Principles on
Business and Human Rights (UNGPs) on Business and Human Rights
and OECD paragraph 104(a)
The number of severe human rights incidents connected to the undertaking’s workforce in the reporting period, including
an indication of how many of these are cases of non-respect of the UNGPs, ILO Declaration on Fundamental Principles
and Rights at Work or OECD Guidelines for Multinational Enterprises. If no such incidents have occurred, the undertaking
shall state this.
Y 146
ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in
the value chain paragraph 11(b)
Any geographies, at country level or other levels, or commodities for which there is a significant risk of child labour, or of
forced labour or compulsory labour, among workers in the undertaking’s value chain.
N Not Material
ESRS S2-1 Human rights policy commitments paragraph 17 The undertaking shall describe its human rights policy commitments that are relevant to value chain workers, including
those processes and mechanisms to monitor compliance with the UN Guiding Principles on Business and Human Rights,
ILO Declaration on Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises.
Y 148
ESRS S2-1 Policies related to value chain workers paragraph 18 The undertaking shall state whether its policies in relation to value chain workers explicitly address trafficking in human
beings.
N Not Material
ESRS S2-1 Policies related to value chain workers paragraph 18 The undertaking shall state whether its policies in relation to value chain workers explicitly address forced labour or
compulsory labour and child labour.
N Not Material
ESRS S2-1 Policies related to value chain workers paragraph 18 State whether the value chain undertaking has a supplier code of conduct. N Not Material
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights
principles and OECD guidelines paragraph 19
The undertaking shall disclose whether and how its policies with regard to value chain workers are aligned with
internationally recognised instruments relevant to value chain workers, including the UNGPs.
N Not Material
ESRS S2-1 Due diligence policies on issues addressed by the
fundamental International Labor Organisation Conventions 1 to 8,
paragraph 19
The undertaking shall also disclose the extent to which cases of non-respect of the UNGPs, ILO Declaration on
Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises that involve value chain
workers have been reported in its upstream and downstream value chain and, if applicable, an indication of the nature of
such cases.
N Not Material
ESRS S2-4 Human rights issues and incidents connected to its
upstream and downstream value chain paragraph 36
The undertaking shall also disclose whether severe human rights issues and incidents connected to its upstream and
downstream value chain have been reported and, if applicable, disclose these.
Y 149
ESRS S3-1 Human rights policy commitments paragraph 16 The undertaking shall describe its human rights policy commitments that are relevant to affected communities. In its
disclosure it shall focus on those matters that are material in relation to, as well as its general approach to human rights of
communities and indigenous peoples; engagement with these communities; measures to enable remedy of human rights
impacts.
N Not Material
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights,
ILO principles or and OECD guidelines paragraph 17
The undertaking shall disclose whether and how its policies with regard to affected communities are aligned with
internationally recognised standards relevant to communities and indigenous peoples specifically, including the UNGPs.
N Not Material
Requirement Description Material Page
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oftheYear
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andPerformance
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Report
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Statements
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Information
117
General disclosures continued
Datapoints derived from other EU legislation continued
CVC Capital Partners plc Annual Report 2024
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights,
ILO principles or and OECD guidelines paragraph 17
The undertaking shall also disclose the extent to which cases of non-respect of the UNGPs, ILO Declaration on
Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises that involve affected
communities have been reported in its own operations or in its upstream and downstream value chain and, if applicable,
an indication of the nature of such cases.
N Not Material
ESRS S3-4 Human rights issues and incidents paragraph 36 The undertaking shall also disclose whether severe human rights issues and incidents connected to affected communities
have been reported and, if applicable, disclose these.
N Not Material
ESRS S4-1 Policies related to consumers and end-users paragraph 16 The undertaking shall describe its human rights policy commitments that are relevant to consumers and/or end-users
including the general approach for respect for human rights of consumers and end users, the engagement with such
parties, and measures to provide and/or enable remedy for human rights impacts.
N Not Material
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights
andOECD guidelines paragraph 17
The undertaking shall disclose whether and how its policies with regard to consumers and/or end-users are aligned with
internationally recognised instruments relevant to consumers and/or end-users, including UNGPs.
N Not Material
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights
andOECD guidelines paragraph 17
The undertaking shall also disclose the extent to which cases of non-respect of the UNGPs, ILO Declaration on
Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises that involve consumers and/
or end-users have been reported in its downstream value chain and, if applicable, an indication of the nature of such cases.
N Not Material
ESRS S4-4 Human rights issues and incidents paragraph 35 The undertaking shall consider whether severe human rights issues and incidents connected to its consumers and/or end-
users have been reported and, if applicable, disclose these.
N Not Material
ESRS G1-1 United Nations Convention against Corruption
paragraph10 (b)
Where the undertaking has no policies on anti-corruption or anti-bribery consistent with the United Nations Convention
against Corruption, it shall state this and whether it has plans to implement them and the timetable for implementation.
Y 152
ESRS G1-1 Protection of whistle-blowers paragraph 10(d) Where the undertaking has no policies on the protection of whistle-blowers, it shall state this and whether it has plans to
implement them and the timetable for implementation.
N Not Material
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery
lawsparagraph 24(a)
The number of convictions and the amount of fines for violation of anti-corruption and anti-bribery laws. Y 154
ESRS G1-4 Standards of anti-corruption and anti-bribery
paragraph24(b)
Any actions taken to address breaches in procedures and standards of anti-corruption and anti-bribery. Y 154
Requirement Description Material Page
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andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
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Statements
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Information
118
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CVC Capital Partners plc Annual Report 2024
Environmental
information
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CVC Capital Partners plc Annual Report 2024
E1 Climate change:
building climate resilience
Strategic considerations
CVC is committed to helping accelerate the energy
transition and proactively managing the impacts of
this on our portfolio. We believe that reducing our
own greenhouse gas (GHG) emissions footprint and
engaging with our portfolio to do the same creates
long-term value for our portfolio companies
andstakeholders.
With respect to our operational footprint, CVC
andour main suppliers are primarily people-based
businesses with a limited physical footprint and,
hence, limited direct physical climate risk or impact.
By setting targets for GHG emissions reductions, and
increasing the accuracy of data collection, we are
demonstrating that we are supporting the transition
to a lower-carbon economy in our role as manager
and adviser to our investment portfolio.
As part of our strategy to address climate change, we
leverage our position to encourage investee companies
deemed part of our value chain to set decarbonisation
targets and improve the quality and accuracy of their
climate data. Where there is the opportunity to do so,
this stewardship seeks to mitigate transition risks
associated with failing to adapt to a low-carbon
economy, helping to protect our reputation and
sustain long term investment returns.
To demonstrate senior management’s focus on
sustainability matters, 10% of the executive directors’
LTIP is linked to sustainability-related metrics, including
decarbonisation targets. See the Remuneration Report
on page 76 for further information.
E1-1 Transition plan for climate
mitigation
In 2022, when our business consisted of the Private
Equity and Credit platforms, we assessed the level of
Scope 1 and 2 market-based emissions reduction
that would be needed to align with the objectives of
the Paris Agreement. This analysis enabled us to set
Science Based Targets initiative (SBTi) targets which,
if met, will contribute to the objective of limiting
global warming to 1.5°C, in line with the Paris
Agreement. We made a public commitment to set
science-based targets in 2022, and the targets,
which relate to the Private Equity and Credit
platforms that made up our business at that time,
were validated by the SBTi in 2023.
During this exercise in 2022, we determined that
organic growth of our business by 2030 would result
in an additional 566 metric tonnes CO
2
equivalent
(mtCO
2
e) of Scope 1 and 2 emissions. We chose 2019
as the base year because it was seen as the most
recent year unaffected by influences from external
factors such as the Covid-19 pandemic, and
calculated that we would need a reduction in
emissions of 87% by 2030, compared with this
baseline. Then we identified the following
decarbonisation levers to achieve this reduction:
– procurement of renewable energy or purchase of
EACs for sites that do not procure renewable
energy (859 mtCO
2
e);
– electrification of our fleet of vehicles (85 mtCO
2
e);
– reduction of on-site heating or cooling reliant on
emissions-producing fuel such as natural gas (44
mtCO
2
e); and
– purchase of carbon credits to compensate for
unabated emissions (147 mtCO
2
e).
For certain offices, we procure renewable energy
directly from suppliers, the cost of which is not
materially different from the cost of non-renewable
energy. For the remainder of our electricity use, we
have procured Energy Attribute Certificates (EACs),
which are issued as proof of energy purchased from
renewable sources. This has not required additional
budget to be approved within our financial planning
process for the reporting period, and has realised the
majority of the inventory savings identified. Fleet
electrification does not require additional budget as
there is not a material difference between the lease
cost of a non-electric vehicle and an electric vehicle.
While we do not apply them to our emissions
andclaim climate neutrality, we purchase carbon
credits to compensate for our remaining emissions in
Scope 1, 2, and Scope 3 Category 3 (Fuel and energy-
related activities), Category 5 (Waste generated in
operations), Category 6 (Business travel) and
Category 7 (Employee commuting).
We embed our transition plan into our financial
planning through the budget established for
renewable energy, EACs and vehicle leasing.
Thecostof carbon credits, whilst not required
tomeet our targets, are incorporated into our
financial planning through our budget.
The above climate transition plan for our
ownoperations has been approved by the
Sustainability Committee.
Notes
Locked-in emissions resulting from our own
operations are immaterial to achieving our
established emissions targets, as our corporate
activities operate with only a few or negligible assets
that generate locked-in emissions.
Our funds are not excluded from EU Paris-aligned
benchmarks, hence are eligible for inclusion in
climate-focused portfolios.
As a signatory to the SBTi, with validated targets,
wefollow SBTi guidance with respect to re-baselining.
Therefore, changes to our emissions profile will not
automatically trigger re-baselining. However, such
changes may be taken into consideration. In line with
SBTi requirements, we will recalculate our climate
targets against an appropriate base year at least
every five years. As these targets were set in 2023,
weexpect to next re-baseline in 2028.
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Environmental information
CVC Capital Partners plc Annual Report 2024
Resilience of the strategy and business
model in relation to climate change
The financial implications of climate change for CVC
are primarily in our ability to generate management
and performance fees and our ability to raise future
funds. We have assessed our corporate business
(‘own operations’) and parts of our value chain
(asdescribed below) for resilience and found
thatoverall climate-related risk is low. Therefore,
estimated anticipated financial effects from material
physical and transition risks are not material,
assuming that our business model remains broadly
consistent in the future.
For this analysis we used time horizons consistent
with our double materiality analysis, i.e. short-term
of less than one year; medium-term of one to five
years and long-term of more than five years.
Physical and transition climate risks are expected
toimpact each company in the portfolio differently.
To assess our resilience to this portfolio risk, in 2023
we carried out a preliminary sector analysis of
macro-level physical and transition climate risks
across our Private Equity portfolio and parts of
ourCredit portfolio. This analysis aimed to better
understand the nature and extent of the financial
risks climate change might pose.
The analysis consisted of two separate exercises: one
evaluating transition risks using three International
Energy Agency (IEA) scenarios, and the other
assessing physical risks using International Panel on
Climate Change (IPCC) scenarios. These exercises
considered a range of physical hazards, such as
wildfires and floods, as well as transition risks,
including the anticipated impact of carbon taxes
over the short-, medium- and long-term.
The conclusion from each of these exercises was
thatthe overall climate-related risk to the portfolio
islow. This is due to effective diversification,
withtheportfolio being weighted towards sectors
with limited exposure to climate-related risks.
Onlyasmall proportion of companies included
intheassessment were deemed likely to have
exposures to material physical or transitional
climaterisks in the coming decades.
As set out in CVC DIF’s 2023 Sustainability Report,
Infrastructure has assessed its portfolio for climate
resilience under two scenarios, the UNPRI Inevitable
Policy Response 1.5°C Required Policy Scenario and
the IPCC Representative Concentration Pathway 8.5
(4.3°C) scenario. In summary, the assessment
concluded that our Infrastructure strategy will have
to be adjusted depending on the scenario that
unfolds over the coming years. Under the 4.3°C
scenario, traditional infrastructure like roads and
hospitals, energy transition initiatives, and digital
investments would likely be affected, through
heightened operational costs, such as maintenance,
recovery from extreme weather events, and
increased insurance premiums. Under the 1.5°C
scenario, we might, for example, opt to abstain
frominvestments that are heavily dependent on
gas,as governments could push to shift away from
this energy source. Guarding against stranded
investment risks becomes paramount, requiring
acomprehensive evaluation encompassing exit
multiples and operational considerations such as
anticipated carbon taxes. We have not assessed
ourSecondaries portfolio for resilience.
In 2024, we onboarded a software tool designed to
support asset managers to better understand the
impact of climate change across investment
portfolios at a deeper level, on a company-by-
company basis. We also assessed our corporate
business (‘own operations’) for climate resilience
withthe same tool. Further work is required to
improve data quality and define the parameters
ofthe assessment.
However, this new approach currently contains
anumber of uncertainties. It depends on accurate
site-level data, including geo-coordinates and asset
values, which vary in quality across the portfolio.
Additionally, further work is needed to develop a
clear methodology for differentiating between leased
and owned assets and whether to include supply
chain risks for certain companies.
In 2024, we established a solid foundation of
portfolio data, but the quality and completeness are
not yet sufficient for inclusion in this year’s reporting.
We aim to enhance data integrity and refine our
methodology over the coming years to ensure that
climate-related risk assessments are credible,
reliable, and actionable in future reporting.
The analysis performed to date indicates that
climate risk is low both for our ‘own operations’ and
for the value chain, when the portfolio is considered
as a whole. Therefore we have not assessed the
ability of our business to adjust or adapt our strategy
or business model. However, we recognise the
potential significant transition risk driven by carbon
pricing in an accelerated transition scenario, which
could have material financial implications in the
decades ahead. To address this, we actively engage
with our portfolio companies on decarbonisation
through our Climate Action Accelerator initiative.
As we progress our engagement with companies in
the portfolio with respect to climate change risk, the
quality of the information on the potential financial
impact of climate change will improve and enable us
to prepare more detailed analysis and reporting.
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CVC Capital Partners plc Annual Report 2024
Impacts
Energy and emissions – People and the
environment are directly harmed over time as
a result of global climate change caused by
the excessive release of greenhouse gas
emissions due to human and business activity.
Goals and targets – Meeting decarbonisation
goals and targets will reduce a company’s
overall carbon emissions, benefitting the
environment as a whole.
Climate-related disclosures – A lack of
disclosure means investors and other external
stakeholders lack the information needed to
make informed decisions regarding an
organisation’s approach to addressing climate
change risks and opportunities.
Lack of engagement of portfolio companies
– An investment manager’s investee
companies may not engage in the transition
to a low-carbon economy, continuing to
contribute to climate change and the
associated harm to the environment and
society. Their lack of engagement may have a
further effect on their stakeholders, including
investors. These stakeholders rely on
companies for information to make informed
decisions about mitigating the impacts of
climate change including the impact on their
own targets.
Risks
Energy and emissions – A business is seen to
have excessive greenhouse gas emissions
(either directly or within its value chain)
compared to the market, impacting its
reputation and hence ability to do business.
(Transition risk)
Goals and targets – Goals and targets are
inconsistent with the wider strategy of the
business, leading to inefficient allocation of
business resources. (Transition risk)
Opportunities
Goals and targets – Goals and targets are
considered sufficiently challenging by the
market and are achieved providing evidence to
demonstrate that a business is reliable and able
to progress its sustainability and responsible
investment strategies, leading environmentally
and socially conscious clients to be more likely to
invest and therefore leading to potentially higher
valuations or increased fund raises. (Transition
opportunity)
Climate-related disclosures – A company’s
disclosures accurately communicate the
sustainability leadership role of the business
encouraging greater engagement with
external stakeholders and improving
reputation. (Transition opportunity)
Processes in place to identify climate-
related impacts, risks and opportunities
We have incorporated sustainability risk, including
climate-related risk, into our overall corporate risk
management, identification and disclosure process.
For more information, refer to ‘Principal risks and
uncertainties’ on page 47.
The double materiality assessment initiated in 2023
allowed us to identify material sustainability impacts,
risks and opportunities, which included climate-
related matters. See IRO 1 on page 106 for details
ofthat process and the results. We screened our
activities and plans in order to identify actual
andpotential impacts on climate change as part
ofthe stakeholder engagement in that process.
Furthermore, the resilience analysis described on the
previous page sets out the additional processes we
have carried out to assess climate-related physical
and transitional risks both in own operations and in
the value chain under different scenarios.
The analysis of our own operations has shown that
physical risks, including chronic and acute climate-
related hazards, are not material for us, largely due
to the locations of our offices and the ability of our
people to work remotely.
Nevertheless, we recognise that climate change is
along-term risk to the business and that responding
appropriately to,adapting to, and building resilience
against, climate change, will enable us to ensure
long-term sustainability of the business and the
funds we manage and advise.
In addition to the corporate risk management
process, we focus on identifying and managing
climate-related risk in the investment portfolio,
andwith respect to how we manage and advise the
funds on behalf of clients. Monitoring risk takes place
where appropriate, across the investment lifecycle,
including due diligence, ongoing monitoring of and
engagement with the portfolio, and exit. For further
information about how we consider climate-related
risk within investment decisions, refer to ‘Investing
responsibly for long-term growth’ on page 159.
E1-2 Policies related to climate change
mitigation and adaptation
Climate Change Policy
Our Climate Change Policy is being drafted, and will
be finalised in 2025.
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Impact, risk and opportunity management
CVC has identified the following impacts, risks and opportunities relating to the material topic of climate change:
E1-3 Actions and resources in relation to climate change policies
The below actions are included in our financial planning and do not depend on the availability and allocation of additional resources.
2024 actions
Action Expected outcome
How this contributes to achievement
ofpolicy objectives and targets
Implemented improved software
fortrackingemissions
(No specific decarbonisation lever)
Improved accuracy of emissions
inventory. No specific reduction
expected in emissions, but will allow
usto manage and analyse emissions
more closely, which is likely to lead to
further reductions.
In aggregating all GHG emissions-
related data into one centralised
system, we are improving the quality
of our GHG emissions inventory
tomanage our emissions more
effectively, with the expectation
thatthis will lead to a reduction
inemissions.
Purchased renewable energy
sourcing and purchases of EACs
(Decarbonisation lever – increase
inuse of renewable energy)
To reduce the direct greenhouse
gasemissions impact of our
businessoperations.
Expected to reduce market-based
Scope2emissions near to zero for 2024.
This action directly reduces emissions
in our corporate business inventory
and contributes to our SBTi target of
73% reduction in Scope 1 and 2 GHG
emissions by 2030.
Purchased carbon credits
(Decarbonisation lever – purchase
ofcarbon credits for emissions not
yet abated)
To indirectly reduce the greenhouse
gasemissions impactofour business
operations by purchasing carbon
creditsequivalent to unabated
emissionsproduced.
This action contributes to our
objective of accounting for
unabatedemissions. However, it is
notconsidered part of our efforts to
achieve our SBTi targets.
Continued to focus on the
ClimateAction Accelerator
Initiative
(No specific decarbonisation lever)
Portfolio companies in Private Equity
strategy able to measure their emissions,
set their own science-based reduction
targets and develop plans to meet
thosetargets.
Expected to reduce portfolio emissions over
the long term (5+ years).
The Climate Action Accelerator
Initiative contributes to our effort
toimprove the data quality and
sustainability efforts of our
PrivateEquity portfolio, as well as
encouraging portfolio companies to
set their own science-based targets.
Future plans
Action Expected outcome, including time horizon
How this contributes to achievement
ofpolicy objectives and targets
Finalise and approve Climate
Change Policy
Clear guidance and formalisation of our
Group-wide approach to climate change.
Policy expected to be approved in 2025.
Strengthens the governance
framework to manage our response
toclimate change impacts, risks and
opportunities.
Source renewable energy and
purchase EACs
To reduce the direct greenhouse gas
emissions impactofour business
operations.
Expected to maintain market-based
Scope 2 emissions near to zero
for2025.
This action directly reduces emissions
in our corporate business inventory
and contributes to our SBTi target of
73% reduction in Scope 1 and 2 GHG
emissions by 2030.
Purchase carbon credits To reduce the indirect greenhouse gas
emissions impactofour business
operations by purchasing carbon
credits equivalent to unabated
emissions produced.
This action contributes to our
objective of accounting for unabated
emissions. However, it is not
considered part of our efforts
toachieve our SBTi targets.
Extend the scope of the Climate
Action Accelerator Initiative
forportfolio companies
toInfrastructure
Portfolio companies in Infrastructure
will be able to measure their
emissions, set their own science-
based reduction targets and develop
plans to meet those targets.
Expected to reduce portfolio emissionsover
the long term (5+ years), increasing the
portfolio’s alignment with net zero.
Contributes to our effort to improve
the data quality and sustainability
efforts of our Private Equity and
Infrastructure portfolio as well as
encouraging portfolio companies to
set their own science-based targets.
Refresh CVC’s climate
riskassessment
A refreshed climate risk assessment,
expected to conclude in 2025.
This action will provide an updated
analysis of CVC’s climate risks,
toensure we focus our efforts
appropriately, to meet the
objectivesin the forthcoming
climatechange policy.
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CVC Capital Partners plc Annual Report 2024
Metrics and targets
E1-4 Targets related to climate change mitigation and adaptation
We have set a number of targets related to climate change mitigation and adaptation, as set out below.
Reduction in absolute Scope 1 and 2 market-based GHG emissions in the operations of Private Equity and
Credit strategies since 2019
The majority of our Scope 1 and 2 emissions come from running our offices. We have therefore committed to a
73% reduction in absolute Scope 1 and Scope 2 market-based GHG emissions in the operations of our Private
Equity and Credit strategies by 2030, using a baseline year of 2019. The target was validated by the SBTi in
2023, and incorporated an assessment of the expected growth in our Private Equity and Credit employees by
2030. For more details on this process, see E1-1 Transition Plan, above.
We are making progress towards this target primarily by purchasing renewable energy and EACs.
GHG emissions (metric tonnes CO2e)
Base year
(2019) 2024 Target
Scope 1
125 192
Scope 2: market-based
444 5
Total Scope 1 and 2: market-based
569 197
% Change from base year – reduction/(increase)
65% 73%
The base year emissions are calculated on a market-based basis; historical location-based data was not used
as a proxy.
Reduction in absolute GHG emissions in the operations of the Infrastructure strategy
As part of the commitment to become a Net Zero Asset Manager by 2050, Infrastructure has set an ambition
to achieve net zero operational emissions by 2050 and has yet to set targets.
Percentage of eligible private equity and listed equity investments in Private Equity strategy
setting SBTi-validated targets
Encouraging and supporting portfolio companies to manage, and ultimately reduce, their GHG emissions
isakey element of how we seek to manage climate risk within the portfolio. It helps build resilience to
climate-related risks, and has the potential to reduce costs, for example, through energy efficiency and
effective energy procurement. It also supports companies to take advantage of the opportunities of the
low-carbon transition, amidst heightened demands for innovation, regulation and disclosure.
Within the portfolio, our Private Equity portfolio accounts for the largest proportion of our assets under
management. It is where the funds typically hold a control or co-control position. Accordingly, we are prioritising
our decarbonisation activities in this asset class, both to enhance and protect the value of our investments.
We have therefore set a target with a commitment to supporting 40% of our eligible private equity and listed
equity investments in the Private Equity strategy to set SBTi-validated GHG emissions targets by 2027, and
100% of our eligible private equity and listed equity investments by 2035. Progress towards this goal began
in2022 and continues in line with expectations. For more information, refer to the ‘Investing responsibly for
long-term growth’ disclosure on page 159.
We plan to continue to work with portfolio companies on GHG emissions reporting and setting their own
targets in the coming years, as we see these as key foundational steps towards better management of
portfolio greenhouse gas emissions. It also enables companies to engage more meaningfully with their
ownstakeholders on the topic and meet growing stakeholder expectations.
Metric Target 2024
Eligible private equity and listed equity investments setting SBTi validated
targets
1
40% by 2027
100% by 2035
19%
Infrastructure portfolio emissions
Infrastructure has set a target to achieve net zero across its portfolio by 2050 (interim target of 70% aligning
by 2030) using the Net Zero Investment Framework (NZIF) and associated guidance from the Institutional
Investors Group on Climate Change (IIGCC). Data is collected through the Infrastructure annual Sustainability
Engagement Program. The latest information available as at the time of reporting is the 2023 outcome.
Metric Target 2023
2
Infrastructure AUM aligning to IIGCC’s NZIF framework 70% by 2030 31%
There have been no changes to any of these targets or any corresponding metrics, their underlying
assumptions or methodologies, limitations, or sources and processes during the period.
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CVC Capital Partners plc Annual Report 2024
1 Eligible private equity investments include those where the funds hold more than 25% ownership, hold a Board seat, and at least 24 months
havepassed since acquisition. Other private equity investments are excluded from the target. However, all public companies are included,
regardless of percentage ownership, and any private equity investment with a validated SBTi target will be included in the calculations
regardlessof the acquisition date. The metric is calculated on an invested capital basis.
2 2023 data has not undergone assurance.
E1-5 Energy consumption and mix
We have disaggregated our energy consumption into renewable and non-renewable sources. We are taking
the available transitional relief on disaggregating non-renewable energy consumption into fossil and nuclear
sources as we have not been able to obtain this information from our suppliers.
Energy consumption (MWh) 2024
Fossil and nuclear sources
626
Renewable sources
3,111
Total
3,737
We do not sell any electricity, generated onsite or otherwise, to national electricity grids. We do not operate in
any sectors determined to have a high climate impact as defined in Commission Delegated Regulation (EU)
2022/1288.
E1-6 Greenhouse gas emissions
The greenhouse gas emissions for the Group are as follows:
GHG emissions (mtCO
2
e) 2024
Scope 1 GHG emissions:
Gross Scope 1 GHG emissions 227
Scope 2 GHG emissions:
Gross location-based Scope 2 GHG emissions 961
Gross market-based Scope 2 GHG emissions
1
6
Significant Scope 3 GHG emissions:
Total Scope 3 16,032
3: Fuel and energy-related activities (not included in Scope 1 or Scope 2) 339
5: Waste generated in operations 133
6: Business travel 14,299
7: Employee commuting 1,261
Total GHG emissions:
Total GHG emissions (location-based) 17,220
Total GHG emissions (market-based) 16,264
GHG Intensity per net revenue 2024
Net revenue (€ 000) 1,565,665
Total GHG emissions (location-based) per net revenue (mtCO
2
e / € 000) 0.0110
Total GHG emissions (market-based) per net revenue (mtCO
2
e / € 000) 0.0104
Throughout this report, we measure and report our GHG emissions using the GHG Protocol Corporate Standard
and Corporate Value Chain (Scope 3) Standard, including base year Scope 2 market-based emissions.
Emissions are reported gross, independent of sales, purchases, transfers, or banking of allowances. We do not
have Scope 1 emissions from regulated emission trading schemes. We do not have biogenic emissions in
ourinventory.
Net revenue is consistent with ‘Total revenue’ according to the Consolidated Statement of Profit and Loss on
page 179, which consists of management fees, carried interest, investment income and other income.
The proportion of Scope 3 emissions calculated using primary data is 32%. The remainder is estimated; see the
methodology information on the next page for more details on estimates. None is calculated using data
obtained from suppliers or other value chain partners.
Methodology notes for GHGreporting
Categories reported
We have prioritised the disclosure of the following categories of Scope 3 emissions: Category 3, Fuel and
energy-related activities; Category 5, Waste generated in operations; Category 6, Business travel; Category 7,
Employee commutes. We have not reported on Scope 3 in the following categories, for the following reasons:
Category Reason
1, 2, 4 (Supply chain emissions) Not significant
8 (Upstream leased assets) All emissions from leased assets reported in Scope 1 and 2
9, 10, 11, 12, 13, 14 (Downstream emissions) Not relevant
15 (Investments on balance sheet) Not significant
Supply chain emissions (Categories 1, 2 and 4) are not significant to us, and downstream emissions
(Categories9-14) are not relevant to us, as a people-based business.
Category 15 (financed emissions) is not significant to us as an advisor of funds. Our balance sheet investments
predominantly consist of small investments in each of our funds. Sector guidance or a standard practice does
not currently exist for reporting on emissions in this relationship. We will continue to monitor this conclusion as
more guidance, common practice and industry expectations (including those of clients) evolves.
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CVC Capital Partners plc Annual Report 2024
1 As at the date of publication, the Renewable Energy Certificates (RECs) that have been applied to the Scope 2 emissions have been
purchased but not yet retired.
Estimates
Scope 1 and 2 emissions have been estimated for any
missing utility data, where actual data is not
available prior to reporting.
Scope 1 data also includes the estimation of
refrigerants used in all CVC offices, and fuel usage
for certain fleet vehicles.
Scope 2 data also includes estimation of electricity
information used for two CVC offices (Stockholm and
Frankfurt) and all CVC DIF offices, using office floor
area and appropriate emission factors.
Scope 3 Category 3 (Fuel and energy-related
activities not included in Scope 1 or Scope 2)
emissions are estimated based on inputs into Scope 1
and Scope 2.
Scope 3 Category 5 (Waste generated in operations)
emissions are estimated based on inputs into Scope 1
and Scope 2.
Scope 3 Category 6 (Business Travel) emissions are
estimated for any offices which are unable to obtain
actual data in a timely manner prior to reporting.
Weused historical travel data or travel data from
asimilar office, adjusted in line with headcount,
toestimate any omitted results, which can vary
fromactual travel during that period.
Scope 3 Category 7 (Employee Commuting)
emissions are estimated based on the 2023 survey
results from employees.
Reporting boundaries
We are reporting our GHG emissions in line with the
financial statements, covering the period 1 January
2024 to 31 December 2024, on a consolidated basis
for CVC Capital Partners plc and its subsidiaries,
referred to in this report as ‘the Group’ or ‘CVC’. The
scope of consolidation is aligned with the financial
statements, incorporating CVC Secondary Partners
from 1 January 2024, CVC Credit from 15 April 2024
and CVC DIF from 1 July 2024. In addition, we have
applied the principles of the operational control
approach. Under this approach, we account for all
emissions where we have direct control over our
operations and where we can influence the decisions
that affect GHG emissions. This includes all owned or
leased facilities and vehicles operated by CVC.
Where we have operational control but do not wholly
own facilities or assets, these will be included in the
organisational boundary. This approach is consistent
with the World Resources Institute (WRI) / World
Business Council for Sustainable Development
(WBCSD) GHG Protocol and general sustainability
reporting protocols and guidance. If wedo not have
operational control of emissions in our value chain,
we will report these emissions as Scope 3.
Greenhouse gases considered
Standard GHG reporting looks at the emissions
associated with seven types of greenhouse gases,
namely carbon dioxide (CO
2
), methane (CH
4
),
nitrousoxide (N
2
O), hydrofluorocarbons (HFCs),
perfluorochemicals (PFCs), sulphur hexafluoride (SF
6
)
and nitrogen trifluoride (NF
3
). Due to the nature
ofour activities on our sites, we consider four types
ofgreenhouse gases to be released in sufficiently
material quantities to be reported on: CO
2
, CH
4
,
HFCs and N
2
O. Given the nature of our operations
and the availability of data, the disaggregation of
reported emissions by constituent gas is not deemed
appropriate at this time.
To allow comparisons of the impacts and the
reductions associated with the different GHGs,
allemissions must be converted to CO
2
equivalent
(CO
2
e), which is the reference gas. All emissions
dataprovided includes CO
2
, CH
4
, HFCs and N
2
O,
converted to CO
2
e. Those values are updated
frequently by the Intergovernmental Panel on
Climate Change (IPCC). The values published
onIPCC – AR6, which corresponds to the 2024
reporting period, have been used for all Scope 1, 2,
and 3 calculations.
Global Warming Potential (GWP) values used for
CVC’s inventory sourced from the IPCC-AR6 are:
GHG CO₂ CH₄ N₂O
GWP 1 27 273
Quantification methods used for the GHG emissions
inventory are in accordance with best practice
asfollowed by WRI/WBSCSD GHG Protocol, based
on the most recently available emission factors.
Calculation methodology
Usage or ‘activity’ data from emissions sources is
used for calculating Scope 1 and 2 emissions. The
activity data is multiplied by correlating emission
factors, as defined in the GHG Reporting Protocol
or,where an emission factor is not available, by
theuse of standard engineering evaluations for the
respective activity.
A general formula for calculating emissions is:
Activity
data
x
emission
factor
=
(CO
2
, CH
4
, N
2
O,
HFC, PFC, SF
6
, NF
3
)
emissions
Each activity tracked by CVC has its own
methodology maintained by our emission calculator
software. Calculation methodology from the
emission calculator software (including applied
emission factors) is described below.
Scope 1: Direct emissions from owned or
controlledsources
Heating fuels
Heating fuels include natural gas, biodiesel, oil, coal
and other less common types of fuel. We calculate
heating fuel emissions using activity data, such as
utility bills, or building square footage estimations.
We gather building-specific data such as addresses,
floor areas, building types, heating methods (notably,
whether the building is heated using electricity,
natural gas, or other heating fuels), lease periods, and
shared workspace details. Where available, heating
fuel consumption data is collected. Where heating fuel
consumption data is not available, benchmark values
for fuel consumption per unit of floor area are applied,
considering building type and location.
Utilising either the primary activity data or resulting
estimations, fuel consumption values are directly
multiplied by the corresponding CO
2
e emission
factor for each fuel type.
Fuel CO
2
e emission factors are obtained from:
– US EPA emission factor hub (most recent) for
Natural Gas, Coal (Anthracite coal) and Oil (Heavy
gas oil); and
– DEFRA UK Government (relevant year) for biofuel
and waste.
Emissions calculated from both emission factor sets
are converted to CO
2
e using AR6 GWP.
Backup generators
Backup generators or other stationary sources that
are not otherwise used for regular building heating
result in Scope 1 combustion emissions.
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We collect monthly fuel use data in gallons (diesel),
therms (natural gas), or similar from offices for which
it is applicable. We apply the emission factors from
the US EPA emission factor hub, converting all
dieselfuel, natural gas, or other specified fuel type
emissions to CO
2
e using AR6 GWP. Fuel usage data
ismultiplied by the emission factor for that fuel.
Fleet vehicles
All emissions from non-electric company-operated
vehicles that are owned or leased by the Company
fall under Scope 1 (electric vehicles fall under Scope2).
We calculate these emissions using location data and
either fuel usage or distance travelled.
We gather fuel usage data, typically in gallons offuel.
If fuel data is not available, the number ofvehicles,
vehicle type, distance travelled, andlocation are
used. If neither are available, proxydata by vehicle
class and location may be used.
All fuel quantities are multiplied by the relevant
emission factors.
Distance data or proxy data are translated into
fuelconsumption and multiplied by the same
emission factors.
Our fleet vehicles are located outside of the UK
andthe US. For such locations, we follow the same
methodology as US vehicle emissions, since the
average US vehicle fuel economy tends to be more
representative of the global average (source: The
International Council on Clean Transportation)
thanUK vehicle fuel economy. This is also the more
conservative approach, because US vehicles tend to
have lower fuel economy (i.e., higher emissions per
distance travelled) than the average UK vehicle.
We use an average fuel economy by vehicle class
from the Alternative Fuels Data Center to calculate
fuel economy. We use the calculated fuel economy
combined with the distance data to calculate fuel
use, then multiply the fuel use by the relevant EPA
fuel emission factor to calculate total emissions.
The following types and sources of emission factors
are used for non-electric fleet vehicles:
– USEPA Emission Factor Hub (most recent) emission
factors, converted to CO
2
e using AR6 GWP.
– Motor gasoline emissions in the US are now using
ablended emission factor with 90% fossil gasoline
and 10% ethanol rather than the 100% fossil USEPA
motor gasoline emission factor to better reflect
biogenic emissions; the new emission factor is
approximately 10% lower.
Where distance travelled is not available, we use
thesame mileage assumptions as for employee
commute for consumer vehicles.
Refrigerants
Refrigerants, including HFCs, are key components
inmost air conditioning and refrigeration systems.
We use estimates of refrigerant emissions based
oncalculations of office square footage and
government benchmarking tools. Refrigerant CO
2
e
isdetermined using its 100-year GWP sourced from
IPCC – AR6 and in combination with the California
Air Resource Board (CARB) for refrigerant blends.
Refrigerant types are assigned based on building
type, and square footage is used to estimate
refrigerant quantities. Emission factors are applied
based on EPA HFC accounting tool values.
For refrigerant blends, we calculate the blended
emission factor based on the 100-year global
warming potential values of the component gases.
Scope 2: Indirect emissions from
generationofpurchased energy
Electricity
We collect electricity consumption for our offices
from utility reports or estimate emissions using floor
area and building type. Consumption quantities are
multiplied by the relevant CO
2
e emission factor
forelectricity, with renewable electricity purchases
and clean energy programmes considered in the
calculations. Electricity consumption values are
thenmultiplied by the region’s electricity generation
emission factor, reflecting the local grid mix of
renewable and non-renewable energy.
For all offices without utility data, floor area, building
type, and US government benchmarks are used to
estimate electricity usage.
Market-based emission factors used for building
electricity include:
– Green-e residual emission factors for US grids
(most recent) with CH
4
and N
2
O emission factors
added from eGRID subregions and converted to
CO
2
e using IPCC-AR6 GWP;
– European Residual mixes (most recent) with CH
4
and N
2
O emission factors added from IEA and
converted to CO
2
e using IPCC-AR6 GWP for each
country’s grid; and
– Location-based emission factors are also used to
calculate market-based emissions if no other
market-based emission factors are available,
following the data hierarchy in the GHG Protocol
Scope 2 Guidance (Table 6.3).
Renewable energy certificates (RECs) purchased by
the Company are set against the market-based
emissions.
– The RECs are RE100 Compliant, follow the Scope 2
Quality Criteria and are cancelled in the most
geographically relevant registries determined by
best practice renewable energy accounting and
commercial exigencies; and
– The RECs are not from the generation facility
supplying the energy.
Location-based emission factors (also calculated
andincluded in footprints) include:
– eGRID emission factors for US subregions’ grids
(applied beginning with the most relevant year, for
example the 2024 release is based on 2022 data);
– DEFRA UK for the UK grid;
– Australia National GHG Accounts Factors for
Australian states’ grids;
– Canada National Inventory Report 1990 – 2022 for
Canada states’ grids (through 2024 release based
on 2022 data);
– IEA emission factors for each country’s grid
(through 2024 release based on 2022 data);
– Ecoinvent for each country’s grid if not available
above (versions 3.7-3.10, depending on year); and
– all location-based emission factors use
IPCC-AR6 GWP.
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CVC Capital Partners plc Annual Report 2024
District heating and cooling
District heating and cooling refers to heating
usingsteam that is generated off site and cooling
using water that is chilled off site. Emissions are
calculated using utility data or estimated for
buildings in countries where district heating and
cooling are common.
We collect a list of all owned or leased buildings
along with the building type, floor area, and other
location data.
We then collect utility data to the extent it is
available, typically in units of MMBtu or kWh.
Whereutility and building area data are not
available, employee headcount is used to assume
75square feet per employee.
For all buildings without utility data, floor area,
building type, and government benchmarks are
usedto estimate district heating and cooling usage.
We then multiply district heat or cooling consumption
for each month by an applicable emission factor for
heat generation. Emission factors are based on the
country that the building is located in:
– Johansen & Werner (2022) emission factors for
Denmark and the rest of the EU-28 (data from
2017), with CH
4
and N
2
O added using DEFRA UK
2022 emission factors, converted to CO
2
e using
AR6 GWPs;
– USEPA 2023 EF Hub emission factors for the US,
using AR6 GWP;
– DEFRA UK emission factors (for each relevant
calendar year, through 2023 data) for the UK,
converted to CO
2
e using AR6 GWPs; and
– Ecoinvent 3.10 global emission factors for district
heat (other than natural gas) for the rest of the
world; WTT and T&D Loss emissions are calculated
separately.
Scope 3, Category 3: Fuel and energy-related
activities (well-to-tank)
Office electricity
Fuel- and energy-related activities (FERA) that fall
under building electricity are electricity and electricity
transmission and distribution (T&D) loss well-to-tank
(WTT), and electricity T&D losses. These are both
considered Scope 3 Category 3, and are distinct from
the building stationary combustion energy-related
activities. Electricity Scope 2 inputs are multiplied
byelectricity WTT emission factors from IEA 2024.
Facilities stationary combustion
FERA not included in Scope 1 or Scope 2 emissions
include: Natural gas leakage, Coal WTT, District
heating and cooling WTT, District heating and
cooling distribution loss WTT, Biofuel and waste WTT,
Oil WTT. The emission factors are from DEFRA UK,
bycalendar year.
Employee commute
If vehicle inputs are distance-based (rather than fuel-
based), values are first converted to total fuel using
DEFRA & USEPA fuel economy data. Inputs for
vehicles are then multiplied by passenger vehicle
WTT emission factors to account for emissions from
the extraction, refining and transportation of the raw
fuels before they are used to power the transport
mode. CVC uses DEFRA UK emission factors for
passenger vehicle WTT emissions.
Scope 3, Category 5: Waste generated
inoperations
For employee-generated waste, we use anonymised
employee data to estimate emissions from waste.
We estimate the number of employees onsite per
location per month, using the latest employee
survey. Using CalRecycle benchmarks, we estimate
the quantity of waste produced by employees at
each site. For all buildings, we assume ‘public
administration’ as the building type and ‘landfill’
and‘recycling’ as the waste types.
Using location data, we multiply waste for each
month by the appropriate emission factor for landfill
and recycling. We assume no waste estimate is
included for work from home employees.
Scope 3, Category 6: Business Travel
Flights
The methodology used to calculate emissions from
flights covers all air travel from non-owned or
operated aircraft, including aviation WTT.
We collect flight booking records including date,
cost, flight route or distance, vendor, and cabin class.
If distance is not provided, we calculate the geodesic
distance between airports along the flight route.
Flights are categorised into Long Haul (>=2300
miles), Medium Haul (>= 300 miles, < 2300 miles),
and Short Haul (< 300 miles) flights.
The total mileage is multiplied by the corresponding
emission factor for each mileage category and, if
available, passenger class. Upstream fuel and energy-
related activities not covered in Scope 1 or Scope 2
emissions are calculated in the Aviation WTT section.
These emissions are included in Scope 3, Category 6
alongside combustion emissions.
Emission factors vary based on distance and
passenger class, applying UK Government data for
long, medium, and short haul flights and various
cabin classes. This includes an 8% uplift factor to
account for the non-linear path flights take.
Two components of air travel climate impacts are
included in Scope 3, Category 6 emissions calculations:
Combustion emissions
Combustion emissions from the fuel burned in the jet
are calculated using the UK Government’s emission
factors for CO
2
, CH
4
, and N
2
O (converted to use the
most recent IPCC Global Warming Potentials, AR6).
Radiative forcing emissions
While radiative forcing is technically an umbrella
term, in the context of air travel this is meant to
represent the climate impact from high-altitude ice
clouds called contrails that trap solar energy and
warm the atmosphere.
The UK Government emission factors use a radiative
forcing multiplier (ranging from 1.7 to 1.9) that
multiplies the total CO
2
combustion emission factor
to calculate the flight emission factors including
radiative forcing. The multiplier for the portion of
emissions due to radiative forcing is therefore
0.7to0.9.
Flight information does not include travel booked
through the Concur system (individually booked or
personal flights not booked through company-
approved travel agents).
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CVC Capital Partners plc Annual Report 2024
Scope 3, Category 7: Employee Commutes
Emissions from employees cover:
– employee commute to offices; and
– employee home energy use.
Employee commute to offices
This category includes the emissions associated with
the transportation of employees between their
homes and worksites.
We perform a survey of our employees for their
commute and workplace habits on a periodic basis.
For 2024 reporting, CVC relied upon survey data
gathered in 2023 from CVC and CVC DIF employees
as these were the most recently performed surveys.
These results were then extrapolated to all offices
and headcounts to represent the employees of
2024.Employee total commuting distances are
estimated by accounting for the average commute
distance and commute mode independently for
each office location.
Employee home energy office use is estimated based
on the percentage of time employee works remotely,
employee electricity consumption based on the home
office size, and the location-specific emissions from
electricity generation.
Employees who are onsite or ‘hybrid’ are assumed to
follow the commute mix of their home city or state
or country, depending on data availability. Based on
this, anonymised employee data is split into the local
proportion of car, transit, walking, and biking
commute modes.
CVC collects employee data including the start date,
end date, and location of each employee. If available,
we also collect information on the proportion of
workdays that employees work remotely. We estimate
the number of employee commuting in each location
for all non-remote employees.
We use data published by governments and data
aggregators to estimate average commute mix and
distance for each location and apply that to the total
number of commuting employees in each location to
determine miles travelled by car, public transit,
walking and biking.
Commute and distance sources include:
– US Bureau of Transportation Statistics for US
commute modes for US states;
– US National Household Travel Survey for US
commute distances;
– US Census Bureau for commute mode data for
different US cities;
– Numbeo traffic data for commute modes and
distance for certain countries and cities;
– UK National Transit Survey for UK commute
distances and commute modes;
– Australia Bureau of Statistics for commute
distance data for all Australian states and
territories; and
– Denmark Statistics for commute distance data for
Copenhagen, Denmark.
Distances are multiplied by the emission factor for
each commute-method.
For combustion emissions from cars, we use the EPA
emission factor for ‘Passenger Car’ (most recent data
set is 2024), with CH
4
and N
2
O added using AR6 GWP.
For public transit, we use a synthetic emission factor
for a passenger-mile travelled by public transit in the
US. We use the National Transit Database’s data on
public transit systems to estimate the mix of bus,
heavy rail, light rail, and commuter rail in the US. We
apply the EPA EF Hub emission factor for each public
transit mode to calculate an average emission factor
for a passenger-mile on public transit.
For walking and biking, we assume no emissions.
Employee home energy use
Home office electricity usage is calculated by
estimating home office size based on regional
averages. Electricity, natural gas, and other energy
use intensity benchmarks are applied to estimate
total usage. Usage figures are multiplied by the
portion assumed to be used to work from home
aswell as the portion of time the employee is
working remotely.
CVC collects employee data including either the
startdate, end date, and location of each employee.
Wealso collect information on the proportion of
workdays that employees work remotely from the
employee survey. We estimate the number of
employees working remotely in each location for
allemployees who are not 100% onsite.
We estimated that the floor area of a home in the US,
Australia, or Canada is 1,753 square feet (the mean in
2021 as reported by the American Housing Survey).
We estimated that the square footage of a home in
the rest of the world is 1,029 square feet (themean
in2020 as reported by the English Housing Survey,
Annex Table 2.1; converted from 95.6 m
2
). This is
assumed to be reasonably representative based on
comparisons of home sizes for other countries, but if
more accurate data country-specific data can be
provided, we are able to integrate that.
Based on research conducted by the International
Energy Agency that found weekday home energy
use during COVID-19 lockdowns increased by 7%
to23% of weekday energy use, we estimate work
from home-related fuel use is 16% of the total
homefuel use.
Electricity, natural gas, and other energy
benchmarks are selected based on location.
For buildings in the US or in countries that are not
covered by the IEA, we use the Department of
Energy’s Building Performance Database to find
benchmarks for electricity consumption and fuel
consumption per square foot, and apply that
benchmark to the square footage of the employee’s
home location.
Specifically, we look for:
– building classification: ‘Single Family’ for
employeehomes;
– electric EUI (Energy Use Intensity) median
(kWH / sft / yr) which we divide by 12 to get
monthly EUI; and
– median Fuel EUI (Energy Use Intensity) (kBtu / sft /
year) which we divide by 12 to get monthly EUI.
For buildings outside the US, we use IEA Energy
Efficiency Indicators.
Resulting energy consumption for each month is
multiplied by the percentage of days an employee
was working remotely, then multiplied by the local
electricity emission factor, natural gas emission
factor, or other relevant fuel emission factors.
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CVC Capital Partners plc Annual Report 2024
E1-7 Carbon removals and
carbon-mitigation projects
financed through carbon credits
While the focus of the Group’s climate strategy is on
reducing emissions, we recognise that, despite the
challenges present in the voluntary carbon market,
carbon credits have an important role to play in
mitigating climate change. The Group has therefore
supported beyond-value-chain mitigation by
investing in carbon reduction projects around the
world, with the level of our investment informed by
our Scope 1 and 2 emissions and Scope 3 emissions
associated with business travel and commuting
unabated by the actions above that have been
completed to date.
These include contributing to the Guanare
Afforestation in Uruguay, which aims to remove
emissions by restoring grasslands, combining
sustainable forestry with cattle grazing; supporting
the Jurua Amazon REDD+ project in Brazil, that aims
to remove emissions through the support of several
different projects focused on the protection of the
Amazon rainforest; and supporting the Mississippi
Valley Reforestation.
These projects were chosen not only for their
contribution to removing emissions, but also for
theadditional social benefits they bring to local
communities. Each project is certified by third parties
and goes through a rigorous system of checks and
balances to prove it is real, measurable, permanent,
additional, independently verified and unique. CVC
engages a third party for purchases of the below
carbon credits and does not acquire them directly
from the projects identified.
The calculations, assumptions and frameworks
applied in order to calculate the unabated emissions
against which these investments have been made is
as described above in ‘Methodology notes for GHG
reporting’ from page 125.
While future carbon credits are anticipated to apply
to future corporate activity, the quantity needed is
not known, nor are there existing contractual
agreements to acquire them.
None of the below credits qualify as a corresponding
adjustment under Article 6 of the Paris Agreement.
We do not have a net-zero target in addition to the
targets described above, nor have we claimed GHG-
neutrality involving the use of carbon credits during
the reporting period.
We do not enhance natural sinks or apply technical
solutions to remove GHGs from the atmosphere in
our own operations or upstream and downstream
value chain. Further, we have no GHG removals
andstorage in our own operations, upstream or
downstream value chain that we have used to offset
reported emissions.
Carbon credits – removal projects
Project description Geographic location Value chain location
Verification
standard Type of removal
Purchased emissions
removal 2024
(mtCO
2
e) Percentage share Status
Jurua Amazon Rainforest REDD+ Brazil Outside value chain CCB/VCS Land-use change
(nature-based solution)
6,092 45% Pending retirement
Guanare Afforestation Uruguay Outside value chain VCS Land-use change
(nature-based solution)
5,415 40% Pending retirement
Mississippi Valley Reforestation United States Outside value chain ACR Land-use change
(nature-based solution)
2,031 15% Pending retirement
Total 13,538
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CVC Capital Partners plc Annual Report 2024
Summary: E1 Climate change
Impacts, risks and opportunities Policy Action Metric Target
1
2024
Negative
impact
People and the environment are directly harmed over time as a result of
global climate change caused by the excessive release of greenhouse gas
emissions due to human and business activity.
The relevant
policy will be the
Climate Change
Policy, which is
currently being
drafted.
Software implementation for
tracking emissions
Renewable Energy and EACs
Carbon Credit Purchases
Reduction of Scope 1 and 2 emissions for
Private Equity and Credit strategies.
73% reduction
by 2030 (2019
baseline)
65%
Positive
impact
Meeting decarbonisation goals and targets will reduce a company’s
overall carbon emissions, benefitting the environment as a whole.
Software implementation for
tracking emissions
Renewable Energy and EACs
Reduction of Scope 1 and 2 emissions for
Private Equity and Credit strategies.
73% reduction
by 2030 (2019
baseline)
65%
Negative
impact
A lack of disclosure means investors and other external stakeholders lack
the information needed to make informed decisions regarding an
organisation’s approach to addressing climate change risks and
opportunities.
Publication of inaugural CSRD-
aligned Sustainability Statement
No target set. Publishing this CSRD-
aligned Sustainability Statement mitigates
this impact.
n/a n/a
Negative
impact
An investment manager’s investee companies may not engage in the
transition to a low-carbon economy, continuing to contribute to climate
change and the associated harm to the environment and society. Their
lack of engagement may have a further effect on their stakeholders,
including investors. These stakeholders rely on companies for information
to make informed decisions about mitigating the impacts of climate
change including the impact on their own targets.
Climate Action Accelerator
Initiative
Eligible private equity and listed equity
investments in Private Equity strategy
setting SBTi validated targets.
40% by 2027
100% by 2035
19%
Risk A business is seen to have excessive greenhouse gas emissions (either
directly or within its value chain) compared to the market, impacting its
reputation and hence ability to do business. (Transition risk)
Software implementation for
tracking emissions
Renewable Energy and EACs
Carbon Credit Purchases
Reduction of Scope 1 and 2 emissions for
Private Equity and Credit strategies.
73% reduction
by 2030 (2019
baseline)
65%
Risk Goals and targets are inconsistent with the wider strategy of the business,
leading to inefficient allocation of business resources. (Transition risk)
Software implementation for
tracking emissions
No target set. Sustainability strategy
approved by the Board in 2024, mitigating
the risk that the goals and targets are
inconsistent with the wider strategy of the
business.
n/a n/a
Opportunity Goals and targets are considered sufficiently challenging by the market and
are achieved providing evidence to demonstrate that a business is reliable
and able to progress its sustainability and responsible investment strategies,
leading environmentally and socially conscious clients to be more likely to
invest and therefore leading to potentially higher valuations or increased
fund raises. (Transition opportunity)
Software implementation for
tracking emissions
No specific target set against this
opportunity. Progress towards our
sustainability targets and ambitions is
published in this Sustainability Statement,
supporting this opportunity.
n/a n/a
Opportunity A company’s disclosures accurately communicate the sustainability
leadership role of the business encouraging greater engagement with
external stakeholders and improving reputation. (Transition opportunity)
Software implementation for
tracking emissions
No target set. Publishing this CSRD-
aligned Sustainability Statement mitigates
this impact.
n/a n/a
1. These targets do not yet relate to the policy objectives as the policy is in the process of being drafted.
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CVC Capital Partners plc Annual Report 2024
EU Taxonomy
The Taxonomy Regulation is a key component
oftheEuropean Commission’s Action Plan on
Financing Sustainable Growth to redirect capital
flows towards a more sustainable economy by
enhancing transparency and promoting long-term
financial and economic decision-making.
The Taxonomy Regulation represents an important
step towards the EU’s strategy to achieve a
sustainable and climate-resilient economy by 2050.
It is based on a classification system that provides
aclear framework for identifying and promoting
environmentally sustainable activities, thereby
facilitating the transition to a greener economy.
As CVC is subject to the requirements of Article 29a
of Directive 2013/34/EU – the CSRD – to produce a
consolidated sustainability report, the Group is also
required, per Article 8 of Regulation (EU) 2020/852
the (‘Taxonomy Regulation’), to report its share of
taxonomy-eligible and taxonomy-aligned activities
covering financial year 2024 in accordance with the
applicable calculation methodologies and disclosure
requirements under the Climate Delegated Act
2021/2139, the Complementary Climate Delegated
Act 2022/1214, the Environmental Delegated Act
2023/2486, and the amendments to the Climate
Delegated Act 2023/2485, together the ‘Disclosures
Delegated Acts’ (DDAs).
For these disclosures, it has been determined that
CVC is classified as a ‘non-financial undertaking’
under Article 1(9) of the Disclosures Delegated Act.
None of the Group’s subsidiaries were “financial
undertakings” for the purposes of the DDA during
theyear ended 31 December 2024. Accordingly,
thefollowing taxonomy KPIs are provided on a
consolidated basis for the Group for the current
reporting period on the basis of the methodology
specified in Annex I of the DDA and presented in
accordance with the templates set out in Annex II of
the DDA, being the requirements for ‘non-financial
undertakings’ as opposed to ‘financial undertakings’.
Notwithstanding the above, it should also note that
the Group includes subsidiaries that are authorised
and regulated by competent authorities in EU
member states in accordance with the requirements
of the Alternative Investment Fund Manager Directive
(AIFMD) and which are therefore ‘alternative
investment fund managers’ (AIFMs) for the purposes
of Article 4(1), point (b), of AIFMD. As at the year end,
none of these EU AIFM entities were subject to the
requirements of Article 19a or 29a of the CSRD, as
thesustainability reporting requirements introduced
by the CSRD were not yet applicable to ‘large
undertakings’ (in accordance with the transitional
provisions in Article 5(2)(b) of the CSRD). Accordingly,
none of the EU AIFM entities fell within the definition
of an ‘asset manager’ nor ‘financial undertaking’ for
the purposes of Article 1(7) or 1(8) of the DDAs.
In future years, it is anticipated that one or more of
the EU AIFM entities within the Group may be subject
to a sustainability reporting obligation under Article
19a or 29a of the CSRD. In such circumstances,
therelevant EU AIFM entities would fall within the
definition of an ‘asset manager’ and a ‘financial
undertaking’ for the purposes of the DDA and would
be required to provide information under Article 8 of
the Taxonomy Regulation in accordance with the
calculation methodologies set out in Annexes III and
XI, and presented in accordance with the templates
set out in Annex VI, of the DDA. As such, it is
anticipated that additional information will be
provided in the consolidated Sustainability Statement
for the Group in future years, in particular with
respect to the taxonomy alignment of the portfolios
of the alternative investment funds managed by
in-scope EU AIFMs within the Group.
Taxonomy activities
We have assessed the activities of the business
byscreening the activities listed in the DDAs.
Wehave considered both the primary and ancillary
activities of the business to identify those that are
taxonomy-aligned and taxonomy-eligible.
Primary activities:
CVC’s primary economic activities are the advice
and strategic oversight and management of various
investment funds (NACE 6430). These economic
activities are not included in the activities defined
inthe DDAs. Hence our primary activities are not
taxonomy-eligible and the revenue and operating
expenditure that is related to assets or processes
thatgenerate this revenue are not eligible.
Ancillary activities:
Our ancillary activities make up a variety activities
typical for a multinational business. We used our
financial information for year ended 31 December
2024 to identify activities that are related to the
purchase of output from taxonomy-aligned
economic activities of others, as well as individual
measures enabling activities to become low-carbon
or to lead to GHG emission reductions.
There are no ancillary revenues that are
taxonomy-eligible.
There are no dedicated plans to expand
taxonomy-aligned economic activities or to allow
taxonomy-eligible economic activities to become
taxonomy-aligned and therefore no associated
ancillary operating or capital expenditure that
wouldbe considered eligible under the DDAs.
Definitions
Taxonomy-eligible economic activity means an
economic activity that is described in the delegated
acts supplementing the Taxonomy Regulation,
irrespective of whether that economic activity meets
any or all of the technical screening criteria laid down
in those delegated acts.
An economic activity is taxonomy-aligned where
itcomplies with the technical screening criteria
asdefined in the Climate Delegated Act and the
Complementary Climate Delegated Act, and it
iscarried out in compliance with the minimum
safeguards regarding human and consumer rights,
anti-corruption and bribery, taxation, and fair
competition. To meet the technical screening criteria,
an economic activity contributes substantially to one
or more environmental objectives while not doing
significant harm to any of the other environmental
objectives. Additional definitions for aligned activities
added by the June 2023 amendments to the Climate
Delegated Act and the Environmental Delegated Act
apply from 1January 2025.
Taxonomy-non-eligible economic activity means
anyeconomic activity that is not described
inthedelegated acts supplementing the
TaxonomyRegulation.
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CVC Capital Partners plc Annual Report 2024
Substantial contribution, do no
significant harm, minimum safeguards
In order to determine if an economic activity is
taxonomy-aligned, it must contribute substantially
to one or more of the environmental objectives;
dono significant harm (DNSH) to any of the other
taxonomy objectives; and that the activities comply
with minimum safeguards.
We have no revenue generated by eligible economic
activities nor plans to expand taxonomy-aligned
economic activities. Therefore our eligible operating
expenditure (opex) and capital expenditure (capex)
are those incurred through the purchase of goods
and services from third parties, as part of our day-to-
day operations in running our business. These can
only be classified as aligned where the good or
service provided by the third party is itself identified
taxonomy-aligned and therefore meets the above
three criteria.
We have assessed each eligible opex or capex to
identify whether any of these three criteria cannot be
met considering the information available about the
provider, and the good or service provided. If it
cannot be identified whether a criteria can be met
due to lack of information, then the activity is
assumed not to meet the criteria and is therefore
notaligned.
Our KPIs and accounting policies
The key performance indicators (KPIs) include the
turnover KPI, the capex KPI and the opex KPI. For
presenting the taxonomy KPIs, we use the templates
provided in Annex II to the DDA. Since the KPIs need
to include an assessment of taxonomy-alignment for
the first time for the reporting period 2024, we do not
present comparative figures. Because we are not
performing any of the activities related to natural
gas and nuclear energy, only Template 1 of Annex II
has been presented.
Our reference point for identifying economic
activities is the financial information which is then
used to provide the figures for the numerators.
Inthisway we can ensure there is no double counting
of capex and opex.
Turnover
Total absolute turnover reconciles to the Consolidated
Statement of Profit or Loss on page 179.
We have not identified any economic activities that
meet the descriptions set out in the Taxonomy
Delegated Acts and therefore we do not disclose any
taxonomy-eligible or taxonomy-aligned activities.
Capital expenditure
Total absolute capex reconciles to note 14 and 15 of
the consolidated financial statements.
Reconciliation € 000
Acquisition of subsidiaries
Right-of-use assets 85,951
Property, plant and equipment 29,226
Computer software 6,685
Additions
Right-of-use assets 46,969
Property, plant and equipment 16,208
Computer software 4,408
Impact of merger accounting (1,584)
Absolute capex per
EUTaxonomytable
187,863
Taxonomy-eligible capex relates to the purchase of
output from taxonomy-aligned economic activities.
There are no assets or processes that are associated
with taxonomy-aligned economic activities and no
capex plans in place. The taxonomy-eligible capex
includes activities covered by:
Activity number 6.5 – Transport by motorbikes,
passenger cars and light commercial vehicles.
Activity number 7.2 – Renovation of existing buildings.
Due to restructuring activities in the year, the capex
numerator and denominator are required to include
both capital costs incurred in the year and capital
costs incurred by the acquired subsidiaries in all
previous years of operation. Limited information
isavailable on the nature of these prior year costs
including those related to leasehold improvements.
To determine which leasehold improvement costs
should be considered eligible, we have applied a
percentage determined by assessing the eligibility
ofcosts from a representative current year leasehold
improvement activity.
The costs associated with these activities were
extracted from the financial information used to
prepare the consolidated financial statements.
Operating expenditure
Total absolute opex is a subset of balances classified
as general and administrative expenses, as disclosed
in note 9 of the consolidated financial statements,
that meets the definitions set out in paragraph 1.1.3.1
of Annex I of the Disclosure Delegated Act, including
research and development, building renovation
measures, short-term lease, maintenance and repair,
and any other direct expenditures relating to the
day-to-day servicing of assets.
Total absolute opex is not considered material to the
business model of the Group and as such only the
denominator is disclosed.
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CVC Capital Partners plc Annual Report 2024
EU Taxonomy disclosure
Turnover
Substantial contribution criteria DNSH criteria ‘Does Not Significantly Harm’)
Economic activities (1)
Code(s)
(2)
Absolute
turnover (3)
€ 000 000
Proportion
of turnover
(4) %
Climate
change
mitigation
(5) %
Climate
change
adaptation
(6) %
Water and
marine
resources (7)
%
Circular
economy (8)
%
Pollution (9)
%
Biodiversity
and
ecosystems
(10) %
Climate
change
mitigation
(11) Y/N
Climate
change
adaptation
(12) Y/N
Water and
marine
resources
(13) Y/N
Circular
economy
(14) Y/N
Pollution (15)
Y/N
Biodiversity
and
ecosystems
(16) Y/N
Minimum
safeguards
(17) Y/N
Taxonomy-
aligned
proportion
of turnover,
year N (18)
%
Taxonomy-
aligned
proportion
of turnover,
year N-1 (19)
Category
(enabling
activity or)
(20) E
Category
‘(transitional
activity)’ (21)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (taxonomy-aligned)
Turnover of environmentally
sustainable activities
(taxonomy-aligned) (A.1)
0 0% 0%
Of which enabling
0 0% 0%
Of which transitional
0 0% 0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
Turnover of taxonomy-aligned
but not environmentally
sustainable activities (not
taxonomy-aligned activities)
(A.2) 0 0% 0%
Total (A.1 + A.2) 0 0% 0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of taxonomy-non-
eligible activities (B)
1,566 100% 0%
Total (A + B)
1,566
100% 0%
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EU Taxonomy disclosure continued
Capex
Substantial contribution criteria DNSH criteria ‘Does Not Significantly Harm’)
Economic activities (1)
Code(s)
(2)
Absolute
capex (3)
€ 000 000
Proportion
of capex
(4)%
Climate
change
mitigation
(5) %
Climate
change
adaptation
(6) %
Water and
marine
resources (7)
%
Circular
economy (8)
%
Pollution (9)
%
Biodiversity
and
ecosystems
(10) %
Climate
change
mitigation
(11) Y/N
Climate
change
adaptation
(12) Y/N
Water and
marine
resources
(13) Y/N
Circular
economy
(14) Y/N
Pollution (15)
Y/N
Biodiversity
and
ecosystems
(16) Y/N
Minimum
safeguards
(17) Y/N
Taxonomy-
aligned
proportion
of capex,
year N (18)
%
Taxonomy-
aligned
proportion
of capex,
year N-1 (19)
Category
(enabling
activity or)
(20) E
Category
‘(transitional
activity)’ (21)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (taxonomy-aligned)
Capex of environmentally
sustainable activities
(taxonomy-aligned) (A.1)
0.0 0.0% 0.0%
Of which enabling
0.0 0.0% 0.0%
Of which transitional
0.0 0.0% 0.0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
Renovation of existing buildings CM, CA 25.5 13.6% 0.0%
Transport by motorbikes,
passenger cars and light
commercial vehicles CM, CA 0.9 0.5% 0.0%
Capex of taxonomy-aligned
but not environmentally
sustainable activities (not
taxonomy-aligned activities)
(A.2) 26.4 14.1% 0.0%
Total (A.1 + A.2) 26.4 14.1% 0.0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Capex of taxonomy-non-
eligible activities (B)
161.5 85.9% 0.0%
Total (A + B) 187.9 100% 0.0%
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EU Taxonomy disclosure continued
Opex
Substantial contribution criteria DNSH criteria ‘Does Not Significantly Harm’)
Economic activities (1)
Code(s)
(2)
Absolute
opex (3)
€ 000 000
Proportion
of opex
(4)%
Climate
change
mitigation
(5) %
Climate
change
adaptation
(6) %
Water and
marine
resources (7)
%
Circular
economy (8)
%
Pollution (9)
%
Biodiversity
and
ecosystems
(10) %
Climate
change
mitigation
(11) Y/N
Climate
change
adaptation
(12) Y/N
Water and
marine
resources
(13) Y/N
Circular
economy
(14) Y/N
Pollution (15)
Y/N
Biodiversity
and
ecosystems
(16) Y/N
Minimum
safeguards
(17) Y/N
Taxonomy-
aligned
proportion
of opex,
year N (18)
%
Taxonomy-
aligned
proportion
of opex,
year N-1 (19)
Category
(enabling
activity or)
(20) E
Category
‘(transitional
activity)’ (21)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (taxonomy-aligned)
Opex of environmentally
sustainable activities
(taxonomy-aligned) (A.1)
0.0 0% 0.0%
Of which enabling
0.0 0% 0.0%
Of which transitional
0.0 0% 0.0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
Opex of taxonomy-aligned but
not environmentally
sustainable activities (not
taxonomy-aligned activities)
(A.2) 0.0 0% 0.0%
Total (A.1 + A.2) 0.0 0% 0.0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Opex of taxonomy-non-eligible
activities (B)
12.5 100% 0.0%
Total (A + B) 12.5 100% 0.0%
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EU Taxonomy – Nuclear Energy and Fossil Gas Related Activities for 2024 Financial Year
Row Nuclear energy related activities
1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
No
2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or
industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.
No
3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production from nuclear energy, as well as their safety upgrades.
No
Row Fossil gas related activities
4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. No
5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. No
6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. No
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Social
information
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CVC Capital Partners plc Annual Report 2024
S1 Own workforce:
attracting, developing
and retaining talent
Strategic considerations
As a people-based business, our success is
underpinned by attracting, developing and retaining
world-class talent. We aim to create an environment
where our people can thrive by treating each other
with respect, creating opportunities for learning and
development, and showing consideration for health
and wellbeing.
Due to a year of significant change for CVC, in which
we listed, finalised the acquisition of CVC Secondary
Partners and acquired CVC DIF, the People team
took the opportunity to review both the people
operating model and the people strategy. In
developing the people strategy, we listened to our
employees’ feedback on how the activities of the
business impact them through the engagement
channels described in the section Employee
Engagement on page 141, and as part of the overall
double materiality assessment process described on
page 106.
The final assessment identified three material
subtopics within our own workforce:
Employee engagement
Employee engagement is a critical part of our ability
to develop and retain world-class talent. We employ
various mechanisms to ensure that our people’s
voices are heard and reflected in business strategies.
Employee wellbeing
We understand that how we act as an employer has
a material positive impact on our people. We aim
topromote a culture that supports the physical,
mental, social and emotional wellbeing of each
individual across the globe.
Talent and diversity, equity and inclusion
We recognise that continued investment in
professional development is an important
component of the long-term success of the business
and growth of its people. We are committed to
providing an open and inclusive work environment
for all, and we value the richness of diverse
perspectives and experiences.
Impact, risk and opportunity
management
Within these three material subtopics, we identified
the following impacts, risks and opportunities:
Impacts
Employee engagement – Engaging with
employees fosters a positive workplace
environment where employees are treated as
individuals and their views are heard.
Employee wellbeing – Employers have the
opportunity to improve the overall wellbeing of
their people on a day-to-day basis, and to
provide bespoke support to individuals in
periods of professional and personal need.
Talent and diversity, equity and inclusion –
A focus on inclusion helps ensure that people
from all backgrounds have the opportunity to
succeed within an organisation, which
contributes to a more just and equitable
working environment for all. Employee
development equips people with the skills and
knowledge necessary for personal growth,
career advancement and economic mobility.
Risk
Overall – We fail to attract, develop and
retain an engaged, productive and diverse
workforce with the right skills and lack of bias,
who are able to exercise better judgement,
make fewer mistakes, enable the business to
achieve its strategic or investment objectives,
and manage the operations of the business
with due skill and diligence.
This overall risk is further broken down into
these three specific risks:
Employee engagement – A less engaged
workforce may see a decline in productivity
and job satisfaction, and lead to higher
employee turnover.
Employee wellbeing – A decline in employee
wellbeing may lead to unexpected leaves of
absence, or negatively impact employee
productivity, which may limit the ability of a
business to operate effectively.
Talent and diversity, equity and inclusion –
Employees who lack appropriate skills and
training are more likely to make mistakes or
exercise poor judgement. A lack of diversity
can reinforce systemic biases, limit innovation
and may negatively affect a company’s
reputation.
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CVC Capital Partners plc Annual Report 2024
Opportunities
Employee engagement – Engaging with
employees improves productivity and job
satisfaction and fosters loyalty, creating a
more high-performing workplace with lower
employee turnover.
Employee wellbeing – Employees will consider
a company’s approach to wellbeing when
making decisions about where to work.
Incorporating wellbeing into the overall
employee experience maintains productivity
and improves a business’ ability to attract and
retain employees.
Talent and diversity, equity and inclusion –
A workplace that embraces diversity of
thought and experience is expected to result in
more productive employees and a more
stimulating and fulfilling environment for
everyone. Further, it is likely to enable a
business to attract a broader talent base,
giving increased access to higher quality
candidates.
The impacts, risks and opportunities identified
contribute to the people strategic priority of the
sustainability strategy set out in this report, and are
reflected in the targets and metrics selected in
response. We have determined that the principal
activity of CVC that results in the identified positive
impacts to be the employment we offer to
employees. All employees therefore have the
potential to be positively affected.
As a people business, we are dependent on our
people, therefore all our own workforce risks and
opportunities arise from this dependency. All
material impacts identified in our own workforce
were positive. Potential risks arising from the
identified impacts would likely be legal or
reputational in character and these types of risks
were assessed as not material in the double
materiality assessment.
Our assessment of different groups of people within
our own workforce that could be positively affected by
the identified impacts, risks and opportunities led us to
focus on ‘women’ as a defined group. This has been
reflected in our strategy, which sets out ambitions
toimprove gender diversity in our business.
Throughout this ‘S1 Own workforce’ disclosure,
Employees are defined as follows:
People who are in a direct employment relationship
with the CVC Group on an open-ended or fixed-term
basis, and a small number of non-employees who
form part of investment teams and are either people
with contracts with CVC to supply labour (self-
employed people) or people provided to CVC by
anundertaking primarily engaged in employment
activities (Non-employees). Interns, temporary
workers engaged through third parties, other self-
employed people, and individuals employed by third
parties providing non-employment activities that
work with CVC on defined projects, are not
considered Employees or Non-employees.
Non-employees do not make up a material portion
of our Employee population. They are not identified
as a population at specific risk of negative impacts.
We do not anticipate material impacts on our
Employees and Non-employees to arise from
transition plans, nor do we have operations at
significant risk of incidents of forced labour or
childlabour.
S1-1 Policies related to own workforce
Global Diversity, Equity and Inclusion Policy
The purpose of the Global Diversity, Equity
andInclusion Policy is to codify our firmwide
commitments to diversity, equity and inclusion.
The objectives of the policy are to affirm our
commitment to equal employment opportunity
inemployment practices and to guard against
discrimination or harassment on grounds of a stated
protected characteristic.
Through the implementation of this policy,
weimplicitly commit to respect the UN Guiding
Principles on Business and Human Rights, the
International Labour Organization (ILO) Declaration
on Fundamental Principles and Rights at Work and
the Organisation for Economic Cooperation and
Development (OECD) Guidelines for Multinational
Enterprises, noting that separate human rights
guidelines are currently under development (see
below). As the topics were not assessed as material,
other than our Modern Slavery Statement, we do
nothave policies to explicitly address trafficking in
human beings, forced labour or compulsory labour
and child labour.
We monitor compliance with our diversity
commitments through the grievance mechanisms
outlined in the section ‘Grievance mechanism’ on
page 149 and through the mechanisms in place to
allow parties to raise concerns about CVC externally,
for example via whistleblowing channels.
The policy applies to all Employees and
Non-employees in Private Equity and Credit
workingat all levels across the Group. Employees
and Non-employees can access the policy through
the intranet or by contacting their local People
teamrepresentative.
As at the reporting date, Infrastructure and
Secondaries maintain separate diversity policies
reflecting similar commitments to the Group policy.
The intention is to align these policies as part of the
broader alignment in 2025.
We also have policies in local handbooks that expand
on global commitments and that take into account
specific jurisdictional requirements. One example is
the CVC UK Equal Opportunities and Diversity Policy.
This complies with the regulations and standards
expected in the UK, which places an expectation on
businesses to implement policies that align to the UN
Guiding Principles on Business and Human Rights.
The Chief People Officer is responsible for the global
policy and local handbooks. Until alignment, the
CVC DIF Global Head of HR and CVC Secondary
Partners Chief People Officer, who oversee their
People functions, are responsible for the CVC DIF
and CVC Secondary Partners People policies
respectively. The policies are implemented by various
functions within the People team, including Talent or
Employee Relations, and frequently in partnership
with the Diversity, Equity and Inclusion Committee.
The People team reviews the global policy
periodically to ensure it is up to date with legal
regulations and current best practices.
Human rights guidelines
Human rights guidelines are under development
andwill be finalised in 2025.
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Board Diversity Policy
To reflect the importance of diversity in leadership,
and best practice in accordance with the UK
Governance Code, we also maintain a Board
Diversity Policy. This policy applies to the make-up of
the Board, with the objective of promoting diversity
and inclusion in the organisation’s most senior
governing body. Setting this example at a senior
leadership level then promotes inclusive practices
across the organisation as a whole.
As set out in the policy, the Board acknowledges the
benefits of greater Board diversity, and remains
committed to ensuring that the Company’s directors
bring a wide range of skills, knowledge, experience,
background and perspectives. All appointments are
made on merit to objective criteria, in the context of
the overall balance of skills and backgrounds the
Board needs to maintain to remain effective.
Given the Board is located in the UK and Europe,
thepolicy has an additional focus on promoting
gender diversity, in line with local regulation and best
practice. This includes commitments that at least
one-third of the seats of the Board directors are to be
held by women and at least one-third by men; and
that there should be at least one woman in the role
of CEO, CFO, chair or senior independent director.
The annual review of this policy, and its
implementation, are the responsibility of the
Nomination Committee. It is implemented through the
annual Board effectiveness and composition review,
the recruitment process and succession planning.
Remuneration Policy
Our Remuneration Policy sets out the policy for
remunerating the directors on our Board, and is
published on our website. For more information on
Board remuneration, please see the Remuneration
Report on page 73.
Employee handbooks
Employee handbooks contain a number of detailed
policies outlining the various obligations on, and
benefits to, Employees (not including Non-employees)
as part of their employment with CVC. In Australia,
China, Hong Kong, India, Japan, Luxembourg,
Singapore, South Korea and the UK (including Jersey),
the handbook includes a training policy. Overall
responsibility for implementing the employee
handbooks lies with the Chief People Officer and
thePeople team, noting that until alignment, the CVC
DIF Global Head of HR and CVC Secondary Partners
Chief People Officer are responsible for their people
policies. In some regional offices, office managers
areresponsible for updating and implementing local
policies and procedures that apply to Employees
(notincluding Non-employees) within their jurisdiction.
We have begun a review programme for all our
employee handbooks to identify key principles and
policies that can be applied consistently across the
Group. We expect to complete this review in 2025.
Variation will still exist between different regions.
S1-2 Employee engagement: processes
for engaging with own workforce and
workers’ representatives about impacts
We believe that the best employee engagement
results from forging strong working relationships
between our people and their managers. Our people
are encouraged to engage regularly with their line
manager and line managers are expected, as best
practice, to engage regularly with their direct reports.
Managers are supported by members of the People
team, as well as through targeted manager training.
We maintain an open-door policy to encourage our
people to speak up, not just to their line managers
but directly to senior leadership. We facilitate this
through forums such as employee resource groups,
townhall meetings and strategy-specific initiatives,
such as the ‘Ask Me Anything’ sessions with senior
leadership in Infrastructure.
The Chief People Officer is responsible for ensuring
this engagement happens, keeping the Board
informed, and that the results inform our approach
to managing our people. Our People team is also
keyto ensuring the perspectives of our people are
factored into our decision-making and in managing
any impacts of its decisions. The primary point of
contact for managers and employees in the People
team are the People Business Partners. Each CVC
strategy has a Business Partner who works closely
with their aligned strategy to understand their
specific needs and those of their employees. The
Business Partner also collects feedback from the
business to incorporate into decision-making, and
updates the business on actions taken. Contact
details are published on the intranet.
Infrastructure also consults with the Works Council
(‘ondernemingsraad’) as required under Dutch law.
Engagement with new hires
We run a quarterly New Hire Orientation for new
joiners. The orientation consists of live training
sessions with a range of senior leaders, as well as
asocial element where new joiners can meet each
other and their colleagues to build their network.
Thetraining includes information about how
employees can provide feedback to the business
orraise concerns.
Employee engagement survey
In recent years, we have run an employee
engagement survey as a key part of engaging with
our people. The survey provides an additional forum
for employees to express their views and allows
ustoreview the effectiveness of other methods
ofemployee engagement.
In this year of significant change, we decided to
refresh our approach to the survey, to take the time
to frame it around the new people strategy and be
inclusive of all employees globally. As such, we did
not conduct a firmwide survey during the reporting
period. However, Infrastructure ran a separate
engagement survey for Infrastructure employees.
Afirmwide survey is due to be released in 2025.
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CVC Capital Partners plc Annual Report 2024
S1-3 Grievance mechanism:
processesto remediate negative
impacts and channels for own
workforce to raise concerns
We encourage employees to raise concerns directly
with their managers as a way to resolve matters
quickly and collaboratively. Where matters cannot
be resolved by a manager, or an employee wants
toraise the matter outside of this relationship,
employees are encouraged to speak with the
Peopleteam. Contact details can be found on
theinternal intranet.
Employees can also raise grievances with other areas
of the business, such as Compliance, Internal
Confidential Advisers (Infrastructure), or through
thewhistleblowing hotline (see ‘G1 Business conduct’
disclosure on page 152), which can protect user
anonymity, or through government-managed
national contact points where available. The People
team can support employees in resolving the matter
informally, or by guiding employees through internal
formal grievance procedures. Employees can
raiseissues on any topic through such grievance
procedures. These policies are contained in local
policies, given different jurisdictional requirements.
At a general level, employees must submit formal
grievances in writing; however, we would still treat
agrievance as formal if an employee wished it
tobetreated as such, but did not want to commit
the matter to writing.
A senior and experienced member of the People
team, which may be our Chief People Officer, will
review the grievance with the employee. That
member of the People team will coordinate any
remediation deemed necessary to resolve the
grievance, in consultation with other areas of the
business as appropriate. Disciplinary action may
formpart of the remediation in accordance with
localdisciplinary procedures. All grievances are
investigated and remediated promptly, with progress
being tracked by the dedicated Employee Relations
function in the People team. The tracker is also
usedto assess the effectiveness of the investigation.
Areminder of how to raise complaints and the
different channels in which to do so was included in
the Compliance refresher training in December 2024.
Employees who raise grievances or assist with
investigations are protected against retaliation.
Theinformation provided by the employee, including
their name and that they have submitted a grievance,
is dealt with sensitively and only shared on a need to
know basis to facilitate remediation of the issue and
tocomply with legal and regulatory requirements.
S1-4 Actions: taking action on material
impacts on own workforce, and
approaches to managing material
risksand pursuing material
opportunities related to own
workforce,and effectiveness of
thoseactions
We have undertaken a number of actions in the
reporting period aimed at addressing potential
impacts, managing risks and pursuing opportunities
relating to the three material sub-topics.
The People team plays a central role in identifying
and designing such actions. In doing so, the team will
take into account directions from leadership (via the
Board and Committees), external developments and
input from employees (via employee engagement
asset out in the section ‘Employee engagement’
above). The People team assesses whether actions
help attract, retain and develop world-class talent in
a way that is practical and impactful given available
resources, and ensures that actions do not have a
negative impact on employees. Actions are taken
either reactively in response to specific events that
have already occurred or proactively to support new
strategic directions and ambitions.
Different functions of the People team across the
Group are responsible for each action depending on
the nature of the action. Actions linked to Diversity,
Equity and Inclusion or training and development are
led by the Talent team, which reports to the Chief
People Officer and works in close partnership with
the Diversity, Equity and Inclusion Committee.
Employee engagement actions are led by various
functions within the People team, including the
People Business Partners, Talent, and People
Advisory. Wellbeing actions are led by our Wellbeing
Committee, together with the Reward team, which
reports to the Chief People Officer, and is responsible
for employee benefits. Our approach to managing
actions relating to actual incidents of discrimination
or harassment is set out in the section ‘Grievance
mechanism’ above.
The cost of the actions primarily relates to
employees’ time spent identifying, planning and
executing the actions. This and the direct financial
cost are not material to the Group’s business.
A summary of actions taken in 2024 and planned
for2025 is set out on the next page. A summary
ofactions in response to material impacts, risks
andopportunities is at the end of this section.
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2024 actions
Action Expected outcome
How this contributes to achievement
ofpolicy objectives and targets
Refreshed the people strategy, set
two new ambitions relating to the
representation of women across our
business and incorporated these
ambitions into our executive
directors’ LTIP.
An increase in gender diversity throughout
the business.
Supports the Diversity, Equity and
Inclusion Policy by setting ambitions
to increase gender diversity.
Fostered an inclusive environment
through employee-initiated
networks, inclusive leadership
training and events.
Strengthened inclusivity, increased visibility
of senior leaders and increased exposure
for junior employees.
Supports the Diversity, Equity and
Inclusion Policy by creating a more
inclusive environment, and improves
employee engagement.
Responded to gender disparity
within investment teams by
partnering with organisations that
support women in the private equity
industry.
Offering support to women in the
investment teams is likely to result in
anincreased proportion of women on
these teams.
Supports the Diversity, Equity and
Inclusion Policy by reducing gender
disparity in the investment functions.
Implemented reactive and proactive
targeted training. Reactive training
included technical skills for junior
investment officers. Proactive
training included new employee
inductions.
Mitigation of potential negative impacts
and promotion of positive impacts
andopportunities for the workforce.
Anincreasingly skilled and informed
workforce is likely to result in improved
jobperformance.
Mitigates the identified material risk
related to insufficient training.
Launched annual personal details
data collection exercise for
employees (excluding
Infrastructure).
Improvement in quality of people data to
guide diversity, equity and inclusion focus.
Supports the Diversity, Equity and
Inclusion Policy by improving the
quality of the data on which Diversity,
Equity and Inclusion decisions and
initiatives are based.
Implemented formal quarterly
employee orientation training.
Increased engagement and feeling of
belonging for new hires.
Supports the people strategy through
development and retention of world-
class talent.
Enhanced formal internal
grievancemechanism.
Increased confidence that the grievance
process will be managed appropriately.
Strengthens the effectiveness of the
Diversity, Equity and Inclusion Policy
by supporting employees who may
wish to raise a grievance related to
Diversity, Equity and Inclusion topics.
Greater employee engagement and
wellbeing. Builds trust within the
business.
Future plans
Action Expected outcome, including time horizon
How this contributes to achievement
ofpolicy objectives and targets
Roll out inclusive leadership training
to managers across the business.
During 2025. Supports the Diversity, Equity and
Inclusion Policy by training managers
to work well with diverse teams, thus
creating a more inclusive
environment.
Transition to a more comprehensive
learning management system.
During 2025. Improves the quality of learning data
for analysis and reporting purposes.
Design intervention programme to
support high potential individuals.
Design completed in 2025. Supports the people strategy through
development and retention of world-
class talent.
Enhance the support network for
women investment professionals
through networks and targeted
leadership intervention and relevant
training.
During 2025. Improves gender diversity and
ambitions by supporting the
development of women junior
investment professionals.
Relaunch employee survey. During 2025. Provides insights into employee
feedback on a variety of topics to feed
into People strategy, including new
talent initiatives.
Review and reassess employee
handbooks.
During 2025. Helps ensure consistency of
handbooks against local regulatory
obligations, as well as against the
People strategy of attracting,
developing and retaining world-class
talent.
Finalise and implement human
rights guidelines.
Approved human rights guidelines,
during2025.
Formalises our approach to the
consideration of human rights and
labour practices within our
operational and investment advisory
and management processes.
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Metrics and targets
S1-5 Targets related to managing
material negative impacts, advancing
positive impacts, and managing
material risks and opportunities
In line with the requirements of the CSRD, we
haveset targets and ambitions to monitor and
manage material sustainability impacts, risks and
opportunities on our own workforce. We reviewed this
framework during the reporting period as part of the
reset of the people strategy.
As part of this review, we deliberately chose the
nomenclature ‘ambition’ to reflect our progress
ondiversity metrics and to signal our broader,
aspirational commitment to diversity. Our ambitions
are used to monitor the effectiveness of our actions,
particularly how those actions contribute to the
objectives of our Global Diversity, Equity and
Inclusion Policy and Board Diversity Policy.
The People team determined the ambitions in
consultation with each strategy across the firm,
aswell as analysing diversity information and trends.
The Partner Board reviewed and approved the
diversity ambitions.
We have also set targets to reflect our progress
onemployee engagement. Those targets relate to
the response rate and results from the employee
engagement survey, and were based on a review of
past engagement surveys. The Chief People Officer
reviewed and approved these targets.
The ambitions and targets have also been
incorporated into the sustainability strategy
approved by the Board. Our performance against
these ambitions and targets will be monitored by
thePeople team and overseen by the Sustainability
Committee. Additionally, the Diversity, Equity
andInclusion Committee monitors the ambitions.
Results will feed into the development of policies
andactivities.
As these targets and ambitions were set in 2024,
wehave not yet analysed performance in order
toidentify lessons or improvements as a result.
However, we are pleased to note that our results
against our ambitions are on track, see right. We do
not have 2024 data for our engagement targets, as
we did not conduct an engagement survey during
the reporting period, as noted in ‘S1-2 Employee
engagement’, above.
Methodology notes for key metrics,
ambitionsandtargets
We have set ambitions and targets for Employees as
defined in this disclosure. All ambitions and targets
apply across the full Group including Secondaries
and Infrastructure unless otherwise stated.
Ambition: Women acrossthebusiness:
Percentage of Employees recorded as women
(excluding assistants) in the Private Equity, Credit,
Secondaries and Infrastructure Human Resources
(HR) Information Systems as at the reporting date.
– For Private Equity and Credit, assistants are
defined as belonging to the ‘Support’ team,
orwiththe job title, ‘Receptionist’, in the Human
Resources Information System. In Secondaries,
assistants are defined as Executive Assistants,
Administrative Assistants and Receptionists.
InInfrastructure, assistants are defined as Senior
Management Assistant or Management Assistant.
– Gender is self-disclosed by employees during
onboarding. Private Equity, Credit and Secondaries
also conduct periodic data collection exercises.
Ambition: Women inseniormanagement:
Percentage of Employees recorded as the following
grades in the HR Information Systems: Managing
Partner, Partner, Senior Managing Director,
Managing Director, Senior Director, Director,
Principal, PS4, PS5, or PS6.
Target: Number of women in the role on
theBoardas CEO, CFO, Chair or Senior
Independent Director:
Number of women in the specified roles, based on
self-disclosed gender, as disclosed in the Nomination
Report on page 64.
Target: Minimum 1/3 of Board members
womenand minimum 1/3 men:
Number of women and men on the Board based on
self-disclosed gender, as disclosed in the Nomination
Report on page 64.
Target: Employee engagement
surveyresponserate:
Number of Employees submitting a response to the
engagement survey, as a percentage of the number
of Employees sent the engagement survey. Note –
target defined and set but no outcome to report
in2024.
Target: Employee engagement survey result:
Number of Employees answering specific satisfaction
question(s) at a rating of 60% or higher, as a
percentage of the number of Employees answering
the specific satisfaction question(s) within the
employee engagement survey. The score of 60% or
higher represents a positive response. The specific
question(s) will be designated before the survey is
issued, at the discretion of the People team. Note –
target defined and set but no outcome to report
in2024.
Ambition: Women across the business
35%
65%
Ambition: Women in senior management
25%
75%
l
Women
l
Men
Target Target 2024
Number of women in the
role on the Board of CEO,
CFO, chair or senior
independent director
1 1
Minimum 1/3 of Board
members women and
minimum 1/3 men
1/3 women
1/3 men
33% women
67% men
Employee engagement
survey response rate
80% n/a
Employee engagement
survey result
60% n/a
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Ambition
40%
by 2030
Ambition
30%
by 2030
S1-6 Characteristics of the
undertaking’s employees
Employee-based metrics are calculated using
headcount at the end of the year unless stated
otherwise, which was 1,271 employees. The most
representative number in the financial statements is
the total full-time equivalent (FTE) employees of 1,258
stated in ‘Key metrics and ratios’ in the Financial
Review on page 37.
The total number of Employees who left during
theyear, defined as Employees whose last day
ofemployment was during the period and
Non-employees whose last day of engagement
wasduring the period, is 120. Comparing this with
the average number of employees during the year,
this represents an employee turnover rate of 9.9%.
The number of leavers and the turnover rate
arepresented as if Credit, Secondaries and
Infrastructure were part of the Group for the
wholeofthe reporting period.
Employees by gender
719
549
3
l
Men
l
Not reported
l
Women
Employees in countries with more than
10% of workforce
482
194
595
l
United Kingdom
l
Other
l
United States
Highlights
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CVC Capital Partners plc Annual Report 2024
Employees by employment type and gender
Women Men Other Not reported Total
Number of employees 549 719 0 3 1,271
Number of permanent employees 537 707 0 3 1,247
Number of temporary employees 12 12 0 0 24
Number of non-guaranteed hours 0 0 0 0 0
Total
employees
1,271
Total
employees
1,271
S1-9 Diversity metrics
Ambition: Women across the business
35%
65%
l
Women
l
Men
Top management
Top management comprises Managing Partners
andPartners.
Number %
Women 12 11%
Men 96 89%
Total 108 100%
Ambition: Women in senior management
25%
75%
l
Women
l
Men
Employee distribution by age
Age is as at the end of the reporting period.
Number
Under 30 years 259
30-50 years 835
Over 50 years 176
Not disclosed 1
Total 1,271
S1-16 Remuneration metrics
2024
Gender pay gap (difference of average pay between women and men, expressed as
percentage of average pay of men)
41%
Ratio between remuneration of highest paid individual to median remuneration of
all other employees
33:1
We have a gender pay gap primarily caused by a higher proportion of men in senior roles and a higher
proportion of women in support roles.
S1-17 Incidents, complaints and severe human rights impacts
Complaints
There were no work-related incidents of discrimination, including harassment, related to gender, racial/ethnic
origin, nationality, religion/belief, disability, age and sexual orientation during the reporting period.
One whistleblowing complaint and three grievances were received during the reporting period. No matters
have been raised to the National Contact Points for OECD Multinational Enterprises and no legal cases or
serious allegations in public reports or the media have been identified. No severe human rights incidents
occurred during the reporting period.
No fines, penalties or compensation for damages as a result of incidents as outlined above were incurred
intheyear. Any fines or penalties would be included in the ‘General and administrative expenses’ line of
theconsolidated financial statements.
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Ambition:
40%
by 2030
Ambition:
30%
by 2030
Summary: S1 Own workforce
Employee engagement
Positive
impact
Engaging with employees fosters a positive workplace environment
where employees are treated as individuals and their views are heard.
Employee
handbooks
Fostered an inclusive environment through
employee-initiated networks, inclusive leadership
training and events.
Implemented formal quarterly employee
orientation training.
Enhanced formal internal grievance mechanism.
Employee engagement
survey response rate
80% n/a
Risk
A less engaged workforce may see a decline in productivity and job
satisfaction, and lead to higher employee turnover.
Opportunity
Engaging with employees improves productivity and job satisfaction and
fosters loyalty, creating a more high-performing workplace with lower
employee turnover.
Employee wellbeing
Positive
impact
Employers have the opportunity to improve the overall wellbeing of their
people on a day-to-day basis, and to provide bespoke support to
individuals in periods of professional and personal need.
Employee
handbooks
Actions planned for 2025. Employee survey result 60% n/a
Risk
A decline in employee wellbeing may lead to unexpected leaves of
absence, or negatively impact employee productivity, which may limit
the ability of a business to operate effectively.
Opportunity
Employees will consider a company’s approach to wellbeing when
making decisions about where to work. Incorporating wellbeing into the
overall employee experience maintains productivity and improves a
business’ ability to attract and retain employees.
Talent and Diversity, Equity and Inclusion
Positive
impact
A focus on inclusion helps ensure that people from all backgrounds have
the opportunity to succeed within an organisation, which contributes to
a more just and equitable working environment for all. Employee
development equips people with the skills and knowledge necessary for
personal growth, career advancement and economic mobility.
Global Diversity,
Equity and
Inclusion Policy
Board Diversity
Policy
Employee
Handbooks
Fostered an inclusive environment through
employee-initiated networks, inclusive leadership
training and events.
Responded to gender disparity within the
investment functions by partnering with
organisations that support women in the private
equity industry.
Launched annual personal details data collection
exercise for employees (excluding Infrastructure).
Implemented reactive and proactive targeted
training. Reactive training included technical skills
for junior investment officers. Proactive training
included new employee inductions.
Women (excluding
assistants) across the
business
Ambition: 40% 35%
Women in senior
management
Ambition: 30% 25%
Risk
Employees who lack appropriate skills and training are more likely to
make mistakes or exercise poor judgement. A lack of diversity can
reinforce systemic biases, limit innovation and may negatively affect a
company’s reputation.
Number of women in the
role on the Board of CEO,
CFO, Chair or Senior
Independent Director
1 1
Opportunity
A workplace that embraces diversity of thought and experience is
expected to result in more productive employees and a more stimulating
and fulfilling environment for everyone. Further, it is likely to enable a
business to attract a broader talent base, giving increased access to
higher quality candidates.
Gender split of Board Minimum
1/3women and
minimum 1/3
men
33% women /
67% men
Impacts, risks and opportunities Policy Action Metric Ambition / Target 2024
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S2 Workers in the
value chain
Strategic considerations
We monitor, engage and have business relationships
with companies in our portfolio across the Private
Equity and Infrastructure strategies. In line with
thelatest regulatory guidance, portfolio companies
are considered part of our value chain. Through
these relationships we are exposed to risks and
opportunities which are considered in detail in the
section ‘Investing responsibly for long-term growth’
on page 159 and are connected to the impacts they
have on the environment, people and society.
In addition, we advise and manage our funds
toacquire, generate value and then exit from
investments. These represent periods of change
within the portfolio companies, and which may in
turn have an impact (positive or negative) on the
workers in those portfolio companies. Recognising
this, employees and culture is one of the dimensions
of our Value Creation Framework (see page 161).
These impacts vary depending on the nature of the
individual portfolio companies. As a manager of a
diverse range of strategies and funds, it is our role to
provide information that meets the decision-making
needs of users whose interest is in the impact
onourmanaged portfolio as a whole. Therefore,
ourreporting is prepared considering the portfolio
atan aggregated level rather than reporting on
theimpacts of individual portfolio companies.
Moredetailed reporting on impacts is provided by
the individual funds to their investors and by the
companies themselves in line with their voluntary
and regulatory reporting requirements.
As an outcome of our due diligence activities,
described in the section, ‘Investing responsibly
forlong-term growth’ on page 159, and as a result
ofthedouble materiality assessment performed
asdescribed above, we have identified that the
sustainability matter, ‘Workers in the value chain’,
ismaterial for us.
This reflects the principle that employers play a
substantial role in the lives and wellbeing of their
workers. How each portfolio company engages
andresponds to the needs of its employees can
havea material effect on those workers. In our role
as a manager and adviser to funds with respect
toour Private Equity and Infrastructure strategies,
wemay encourage management of portfolio
companies towards good practice in their dealings
with their employees, with the aim of limiting
negative impacts and promoting positive impacts
ona wide population of workers. However, it is the
responsibility of the management of the portfolio
company to identify what the positive and negative
impacts are and how best to respond to them.
Wedo not impose consistent policies or standards
onhow companies engage with their workers,
giventhat good practice will vary depending on
thespecifics of the portfolio company. The nature
and inherent characteristics of the workers in each
portfolio company, their context and the nature
ofthe impact on them may vary by geography
ornature of the portfolio company’s operations,
however our role remains the same.
The General Partners (GPs) and CLO managers
thatwe consider form part of our value chain also
maintain a workforce. The nature of this workforce
issimilar to our own as they operate within the same
sector. While it is recognised that their activities will
have an impact on their employees it is not likely
that these will be sufficiently severe to be material
inthe context of our relationship with them.
In addition, the extent of our financial return is less
closely connected to the GPs and CLO managers,
than it is to the portfolio companies, and therefore
there are not likely to be material risks and
opportunities to us linked to the workforce in the GPs
or CLO managers. We have therefore not identified
any impacts, risks or opportunities in these parts of
the value chain.
Impact, risk and opportunity
management
Impacts
Portfolio employees – Unidentified impacts
on, and concerns of, employees in the portfolio
companies, including those impacting their
human rights, are not identified or properly
addressed leading to an impact on these
employees, including on their wellbeing.
Given the portfolio relationship there is a wide
variation in workers and the potential impacts on
them. As such, identifying each individual group in
each individual scenario is not meaningful in the
context of our role as advisor and manager to funds.
Our material impact, as it is described, is therefore
agnostic of the specific characteristics of any
population, and does not give rise to any material
risks or opportunities relating to workers in the value
chain in general, nor to a specific group of value
chain workers.
Risks and opportunities
As stated, the double materiality assessment did not
identify specific unique risks and opportunities relating
to workers in the value chain. However, consistent with
our own workforce, the improvement or deterioration
in the wellbeing of the workforce in each portfolio
company can lead to a material effect on the success
of that portfolio company. This in turn creates
afinancial risk and opportunity for us due to our
dependency on the success of the portfolio companies.
In addition, were significant material negative
impacts to occur in our portfolio companies, there
isa risk to our reputation due to the existence of our
business relationship with the portfolio companies.
The identification and management of these risks
and opportunities are captured within the ‘Investing
responsibly for long-term growth’ topic on page 159.
S2-1 Policies related to value chain
employees
We do not maintain specific policies at Group level
with respect to employees in the value chain.
Portfolio companies are expected to maintain their
own policies to address matters assessed as material
for their businesses, including matters relevant to
their own workforce. The existence of these policies
ismonitored through initiatives such as our ongoing
sustainability monitoring, documented in the
‘Investing responsibly for long-term growth’ section
from page 159.
At Group level, we maintain a policy on responsible
investment, further details of which are also included
in the section ‘Investing responsibly for long-term
growth’. This policy sets out our approach to
managing material sustainability factors within
theinvestment process, including the application
ofourproprietary Value Creation Framework
duringtheengagement and monitoring phase
ofaninvestment lifecycle.
Highlights
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This Value Creation Framework includes the topic
ofemployees and culture, and we capture other
common employee-related matters in our annual
Sustainability Survey, such as employee health and
safety, and employee development. Infrastructure
also maintains its own Responsible Investment
Policy, aligned with the Group policy.
In addition, we are in the process of developing
human rights guidelines which will be finalised in
2025. These will provide guidance to our employees
on what to consider with respect to human rights
when performing their role across our operations and
investment activities, including due diligence and
investment monitoring.
S2-2 Portfolio worker engagement:
Processes for engaging with value
chain employees about impacts
Primary responsibility for identifying and responding
to matters that may affect the wellbeing of workers
sits with the management of the portfolio company
and in particular their executive leadership. In our
role as an adviser and manager to funds that invest
in portfolio companies, and depending on the nature
of the investment, we have a strategic interest in the
activities of the executive management. In this role
we engage regularly with the executive management
on matters key to their business including those
related to their workforce.
We do not engage directly with the workforce
oftheportfolio companies, except for those
inleadership positions.
The executive management are expected to be
informed on the actual or potential impact on their
employees of their activities and to take these into
consideration when making strategic decisions.
Where this is not the case, or where we consider
thatmanagement are not sufficiently aware
oftheimpacts on, or views of, their workforce,
weencourage management to undertake activities
to remedy this.
This is done through our representatives who
sitonthe Boards of our portfolio companies in
asupervisory capacity and who communicate on
key matters to our Investment Committees and
Portfolio Committees.
Independently, on an annual basis, we request
eachof our portfolio companies provide specific
information and data to us about their business and
activities including those relating to their workforce.
This information allows us to identify areas of focus
to aid in our advice and recommendations. This
information is also used in our reporting to the clients
of the funds to provide them with an overview of the
portfolio they are invested into. This data collection
exercise forms part of our annual Sustainability
Survey (Private Equity) or Sustainability Engagement
Program (Infrastructure).
S2-3 Grievance mechanism: Processes
to remediate negative impacts and
channels for value chain employees to
raise concerns
As above, the primary responsibility for remediating
the negative impacts on employees in a portfolio
company sits with the management of the portfolio
company. It is also their decision whether to
maintain a channel for their workers to raise
concerns. There is no channel for workers in the
portfolio to raise concerns directly to us.
Management are encouraged to maintain a
channelto allow their workforce to raise concerns
and ensure their workers are aware of how this
channel functions. On an annual basis each portfolio
company is requested to communicate whether it
has such a mechanism in place as part of the annual
Sustainability Survey (Private Equity) or Sustainability
Engagement Program (Infrastructure).
Where negative impacts are identified by the
management of a portfolio company, we, in
ourroleas an advisor and manager to the funds
investedinthe portfolio company, may supervise
portfolio companies in developing a remediation
plan. We may also track the implementation and
outcome of the plan. The extent of our involvement
depends on the needs and expertise of the portfolio
company, always respecting that we are not
operationally responsible.
This monitoring is performed by our representatives
who engage regularly with the executive
management and who report on key matters
ofconcern to our Investment Committees and
Portfolio Committees. Identified negative impacts
onworkers in a portfolio company are also tracked
by our Sustainability team as part of their regular
engagement activities. This engagement is
formalised under the CVC Sustainability Index
preparation (Private Equity) and the Sustainability
Engagement Program (Infrastructure).
This approach includes monitoring for incidences
ofsevere human rights issues within portfolio
companies through internal and external processes
described in the ‘Investing responsibly for long-term
growth’ section.
S2-4 Actions: Taking action on material
impacts on value chain employees, and
approaches to managing material risks
and pursuing material opportunities
related to the value chain employees,
and effectiveness of those actions
The actions we have undertaken, and plan to
undertake, are part of our approach to responsible
investment and are set out in the section, ‘Investing
responsibly for long-term growth’. We are also
completing the development of formal human rights
guidelines to be applied during the due diligence and
holding stages of the investment lifecycle.
These actions are expected to:
– provide clearer guidance to our representatives
onhow to identify negative impacts and
promotepositive impacts on workers in
aportfoliocompany;
– promote the inclusion of communication channels
between workers and executive management;
– encourage the development of policies specific to
the impacts and needs of the employees of that
company; and
– enable more effective monitoring of remediation
plans to mitigate actual negative impacts.
Undertaking these actions helps us support and
encourage management in portfolio companies to
consider and manage the needs and impacts on
their workforce. However, legal responsibility and
practical management of the workforce lies with the
portfolio company, which will adopt its own policies
in that regard.
The effectiveness of these actions will be assessed
through ongoing sustainability monitoring, as
described in ‘Investing responsibly for long-term
growth’ from page 159.
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Metrics and targets
S2-5 Targets related to managing
material negative impacts, advancing
positive impacts, and managing
material risks and opportunities
No specific targets have been set specifically relating
to reducing the identified potential negative impacts
on portfolio employees. We did not identify potential
positive impacts or material risks and opportunities
related to portfolio employees.
Targets related to responsible investment in general
are set out in the section ‘Investing responsibly for
long-term growth’.
Plans and targets to reduce negative impacts or
advance positive impacts on portfolio employees are
developed at the level of the individual company and
are bespoke to the needs and circumstances of that
company. Aggregating these targets does not
provide meaningful information.
Metrics related to managing material negative
impacts, advancing positive impacts, and
managing material risks and opportunities
While information is requested from portfolio
companies on an annual basis, market practice
isnot yet sufficiently developed to ensure that
itiscollected in a consistent fashion and that it
provides verifiable, comparable and understandable
information on an aggregated basis to provide
afaithful representation of the consideration
ofemployees in the portfolio.
As such the transitional provision, allowing for a
delay of up to three years in reporting of metrics
from the upstream or downstream value chain, has
been taken in the year and no metrics are presented.
We are implementing our CVC Sustainability Index,
which includes steps to encourage Private Equity
portfolio companies to improve the quality of their
data. See the Investing responsibly for long-term
growth disclosure on page 159 for more information
about this initiative.
Summary: S2 Workers in the value chain
Impacts, risks and opportunities Policy Action Metric Target 2024
Negative impact Unidentified impacts on, and concerns of, employees in the portfolio companies, including
those impacting their human rights, are not identified or properly addressed leading to an
impact on these employees, including on their wellbeing.
Responsible Investment
Policy
See ‘Investing responsibly for long-term
growth’ section.
None n/a n/a
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Social information continued
CVC Capital Partners plc Annual Report 2024
Governance
information
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CVC Capital Partners plc Annual Report 2024
G1 Business conduct:
ensuring robust governance
and accountability
Governance
Business conduct is a critical topic for our business,
and a material sustainability topic for our
stakeholders. As such, we have a strong framework
of control and seek to ensure our conduct is of the
highest standard.
The Board has delegated authority to the Risk
Committee to review business conduct matters such
as whistleblowing, fraud prevention and detection,
anti-bribery and money-laundering controls, code
ofcorporate conduct and compliance policies. The
Group Risk Committee (GRC) is an executive-level
committee that reports to the Risk Committee.
The GRC consists of the Chief Legal and Compliance
Officer, the Group CFO, the Head of Compliance
and the Group Risk Director, each of whom have
many years’ experience in dealing with business
conduct matters. The Risk Committee, with
supportfrom the GRC, is responsible for overseeing
the principal risks affecting the Group. Its key
responsibility with regard to business conduct
istoreview reports and metrics measuring the
performance of business conduct against the
Group’s Risk Appetite, challenging analysis and risk
management, and escalating material concerns
asappropriate. The GRC receives information that
contains key indicators and supporting commentary
related to business conduct, at an appropriate level
of information to provide oversight.
We have experienced teams of compliance
professionals in each strategy. In line with the Group
as a whole, work is ongoing to consolidate policies
and procedures across the business following the
changes to the business described in the ‘Significant
transactions’ section of the Financial Review on
page33.
Impact, risk and opportunity
management
The double materiality assessment carried out in
consultation with stakeholders in 2023 identified one
sustainability risk within business conduct as material
for CVC, if it was to materialise.
Risk
Legal and regulatory compliance – Failure to
identify or comply with regulatory obligations
or expectations, including those relating to
anti-corruption and anti-bribery and insider
trading, or failure to obtain or maintain
requisite permissions for activities conducted in
different jurisdictions, could lead to regulatory
censure, fines or restrictions on activities.
For more information on the double materiality
assessment process, see IRO 1 ‘Impact, risk and
opportunity management’ on page 106.
G1-1 Business conduct policies and
corporate culture
Recognising the importance of integrity and ethics in
conducting our business, our Code of Ethics outlines
our obligation to stakeholders with regard to business
conduct, along with the standards and behaviour we
expect of our employees. The Group Code of Ethics
applies to the Private Equity and Credit strategies.
Secondaries and Infrastructure have similar but
separate codes.
Many policies underpin our three Codes of Ethics,
setting common standards of business conduct
across our network. Regional Compliance Manuals
and strategy-specific policies and guidelines
supplement the global policies where necessary, to
reflect the relevant activities and ensure compliance
with local laws and regulations.
These policies include, but are not limited to:
– Anti-Bribery and Corruption;
– Whistleblowing;
– Personal Securities Transaction; and
– Insider Trading and Market Abuse.
Each of these policies exists as a Group policy for the
Private Equity and Credit strategies. The Secondaries
and Infrastructure strategies have similar but
separate policies. The policies are available to
employees through the Compliance page on the
relevant strategy’s intranet. New joiners are required
to confirm they have read, understood and will
adhere to these policies on joining the firm, and all
Active Employees
1
are required to re-acknowledge
the same in their periodic compliance attestation.
Each of these policies is monitored through our
compliance monitoring programmes, which operate
across relevant strategies and regions, including in
Secondaries and Infrastructure. Certain findings of
the programmes are reported to the GRC, and
independent reporting is provided to the Board.
Code of Ethics
The objective of each of the Codes of Ethics is to
facilitate and maintain the highest level of integrity
and strong ethics in conducting our business. The
Board is accountable for maintaining the standards
set out in each Code of Ethics.
Should any violations occur, they must be
escalatedpromptly in accordance with the relevant
policy requirements.
Anti-Bribery and Corruption Policy
Our Anti-Bribery and Corruption policies set out our
compliance procedures regarding our commitment
to preventing bribery and our obligations under
applicable anti-bribery and anti-corruption rules. The
Head of Compliance is accountable for maintaining
the standards set out in the Group policy, which
covers Active Employees of Private Equity and Credit.
CVC Secondary Partners and CVC DIF each have a
similar but separate Anti-Bribery and Corruption
Policy, covering their Active Employees.
The policies define employees’ duties as individuals.
Applicable anti-bribery and corruption rules include,
where relevant, the UK Bribery Act, the US Foreign
Corrupt Practices Act, and US rules governing
political contributions (‘Pay to Play’ rules).
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Governance information
CVC Capital Partners plc Annual Report 2024
1 Active Employee: Any individual that is actively performing services as an
employee for the Group (excluding individuals on annual leave, long-
term sick, parental leave or that are inactive for any other reason).
Whistleblowing Policy
The objective of the Whistleblowing policies is to set
out the policies and procedures for employees and
other relevant parties to voice misconduct concerns
in an effective manner, without fear of reprisal.
The Group policy covers Active Employees of
PrivateEquity and Credit, plus additional parties
asapplicable. Secondaries and Infrastructure each
have a similar but separate Whistleblowing Policy,
covering their Active Employees.
The Board is accountable for overseeing the Group
policy. Secondaries and Infrastructure have their
owngovernance processes. All submissions received
through the whistleblowing process, whether
disclosed openly or anonymously, are investigated
and remediated promptly by an objective senior
member of the Compliance team, in collaboration
with the People and Legal teams. The Policy also
recommends external parties to whom misconduct
concerns may be reported. CVC takes protection
against retaliation for whistleblowers seriously. Any
information provided is managed sensitively and
objectively by a member of the Compliance team
with necessary seniority and hands-on professional
experience gained through ad hoc training and
guidance from senior colleagues.
The Group Whistleblowing Policy sets out our
obligations under local legal requirements and
isdrafted in accordance with regulatory guidance
orrules issued by CVC’s global regulators, including
the Dutch Whistleblowers Protection Act (Wet
bescherming klokkenluiders), the UK Public Interest
Disclosure Act 1998 and the Securities Whistleblower
Incentives and Protection rules of the US Securities
and Exchange Commission.
The Whistleblowing Policy is also available on our
website, should any external party wish to raise
aconcern.
Personal Securities Transaction Policy
andProcedures
The objective of the policy is to prevent employees
from undertaking personal securities transactions
that may give rise to a conflict of interest, insider
trading, or a breach of confidentiality, or would
otherwise be inconsistent with our fiduciary
obligations to our clients.
The Group policy covers Active Employees of Private
Equity and Credit. Secondaries and Infrastructure
each have a similar but separate Personal Securities
Transaction Policy. In addition, at the discretion of
the Head of Compliance, we may require other
persons who provide services to CVC to be treated
aspersonnel for some or all of the policy.
The Head of Compliance is accountable
formaintaining the standards set out in the
Grouppolicy.
Insider Trading and Market Abuse Policy
The purpose of the Insider Trading and Market Abuse
Policy is to ensure all employees, including directors
of CVC Capital Partners plc, comply with the
applicable rules on insider dealing, and do not abuse,
nor place themselves under suspicion of misusing,
inside information. It imposes restrictions on dealing
in Group securities beyond those imposed by law.
The Group policy covers Active Employees of Private
Equity and Credit, and in certain cases close family
members
1
of employees. Secondaries and
Infrastructure each have a similar but separate
Insider Trading and Market Abuse Policy.
The Board is accountable for maintaining the
standards set out in the Group policy. Secondaries and
Infrastructure have their own governance processes.
The policy has been written to align with the
regulations and obligations under the European
Market Abuse Regulation.
Corporate culture
The Group Code of Ethics sets out the value system
that defines our culture within Private Equity and
Credit. This value system is reinforced through the
complementary policies summarised here.
We have commenced a holistic review of culture
andconduct to evaluate and develop our corporate
culture and to produce a consistent set of values that
apply to all entities across the Group.
Training
We provide resources to every Active Employee,
through ongoing and ad hoc Compliance training,
toensure our commitment to ethics, integrity
andcompliance remain a priority. Our training
programmes have been set up with the aim
ofensuring that employees understand their
responsibilities and the relevant policies and
procedures in place to maintain compliance
withapplicable laws and regulations.
On joining the firm, all new hires must:
– read and understand the relevant Code of Ethics
as well as any other relevant Company policy; and
– complete mandatory training on compliance
topics, which includes, but is not limited to, topics
such as business conduct, political donations, and
anti-bribery and corruption.
All relevant employees receive mandatory training
on compliance topics as required, which is tailored to
their roles and responsibilities. We also provide a
combination of in-person and virtual training (which
allows courses to be adapted to include any new or
updated risk as relevant), and our Compliance team
provides ad hoc updates on relevant topics where
necessary. Our employees across the Group regularly
formally confirm their ongoing adherence to our
compliance policies, on their relevant compliance
monitoring system.
A non-exhaustive list of the topics covered in
mandatory refresher training include the following:
– personal account dealing;
– insider trading / material non-public information;
– anti-money laundering / combating the financing
of terrorism;
– whistleblowing; and
– conflicts of interest.
Functions at risk
The functions within CVC Group most at risk of
corruption and bribery are investment officers,
relationship managers within the Client and Product
Solutions (CPS) team and managing directors and
directors within Business Operations dealing with
material contracts.
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CVC Capital Partners plc Annual Report 2024
1 Close family members of Employees in respect of which an Employee shares one or more joint securities brokerage or dealing accounts or
otherwise has influence, control, investment discretion or decision-making authority for that related individual.
G1-3 Prevention and detection of
corruption and bribery
The Anti-Bribery and Corruption Policy, summarised
above, sets out the procedures in place to prevent,
detect and address allegations or incidents of
corruption and bribery. These include procedures
forgifts, entertainment, political and charitable
donations and similar, which set out notification and
pre-clearance requirements, and prohibited actions.
Staff are obliged to report knowledge or suspicions
ofbribery or inappropriate influence, and to attend
anti-bribery training. Employees must also declare
intheir compliance attestation that they have
appropriately recorded all gifts, entertainment and
donations. Finally, compliance testing is carried out
as part of the Compliance Monitoring Programme.
The Group Whistleblowing Policy (see previous page)
sets out the policies and procedures for parties to
voice concerns. The Group Whistleblowing Policy is
available on our intranet, and also published on our
public website, to provide guidance to external
parties who may wish to raise a concern.
The Board has delegated oversight of the Group’s
whistleblowing policies and procedures to the Risk
Committee and whistleblowing events are a standing
agenda item. Furthermore, the GRC monitors key
conduct risk measures. Members of our People team,
including the CPO, sit on the GRC and oversee
employee conduct in conjunction with the
Compliance team.
If misconduct is suspected, the conduct will be
investigated and remediated in accordance with
theGroup Whistleblowing Policy.
All potential compliance breaches will be assessed
according to the Breach Escalation Procedure. All
identified breaches, regardless of materiality, are
logged onto the breach log and, where necessary, a
breach memo is written. Breaches will be categorised
according to the Breach Escalation Procedure.
Instances that potentially qualify as material or
significant breaches are escalated to the Chief Legal
and Compliance Officer, the Chief People Officer,
the Head of Compliance and relevant senior
leadership (as provided for in the Group RAP)
andinvestigated according to the Breach
EscalationProcedure.
Furthermore, the GRC reviews material events (on an
anonymised basis) that are escalated to it by the
People team. GRC will escalate any such matters to
Risk Committee that are deemed sufficiently material.
100% of functions at risk as defined above, including
Active Employee members of administrative,
management and supervisory bodies within these
functions, are covered by periodic anti-bribery and
corruption training programmes. Our anti-corruption
and anti-bribery training is designed to ensure
compliance with legal and ethical standards by
covering relevant laws, internal policies, and risk
mitigation strategies. The depth of training ranges
from foundational awareness sessions for all Active
Employees to specialised, role-specific training
provided on an ad-hoc basis, as necessary.
Actions
2024 Actions
Action Expected outcome
How this contributes to achievement
ofpolicy objectives and targets
Regular reviews:
The Compliance Department
periodically reviews all Group
policies named in this section.
These reviews are tracked in the
Compliance Monitoring
Programme.
Policies will remain up to date and fit
forpurpose.
The review ensures the policies
continue to uphold business conduct
at appropriate levels.
Approval of restructuring of
governance structure:
In 2024, CVC approved a plan to
restructure the governance of risk
and compliance.
The governance structure was reviewed
in the context of the listing, recognising
the heightened governance
requirements of a listed entity.
The new structure simplifies the
decision making subsequent to the
listing and recent acquisitions, and
puts in place a more robust
governance framework.
Future Plans
Action Expected outcome, including time horizon
How this contributes to achievement
ofpolicy objectives and targets
Holistic review of culture
andconduct
Consistent set of values that apply to
allentities across the Group, by the end
of 2025.
This will ensure that our
governance structure complies
with the new UK Corporate
Governance Code and other
similar regulatory requirements.
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CVC Capital Partners plc Annual Report 2024
Metrics and targets
G1-4 Incidents of corruption or bribery
There were no convictions or fines for violation
ofanti-corruption and anti-bribery laws in the
reporting period.
No breaches in procedures and standards of
anti-corruption and anti-bribery occurred in the
reporting period, and thus no actions were taken
toaddress breaches.
Completion rate of compliance
certificationsissued to Active Employees
duringthe reporting period
The firm aims to achieve a high completion rate for
compliance attestations issued to Active Employees
during the reporting period. This will be achieved
byassessing the number of attestations issued
bycompliance during the period and following-up
toensure any outstanding items are completed.
Thecompletion rate will allow the firm to evaluate
progress against this ambition. The firm intends to
set a specific target during the next reporting period.
An Active Employee is defined as any individual that
is actively performing services as an employee for
theGroup on the date that the relevant compliance
certifications are issued. This excludes individuals on
annual leave, long-term sick, parental leave or that
are inactive for any other reason.
Completion of periodic certifications is tracked
through the relevant compliance system. The
outcome for the metric is determined by the
completion rate in the system.
Summary: G1 Business Conduct
Impacts, Risks and Opportunities Policy Action Metric Target 2024
Impact No material impacts identified.
Risk Failure to identify or comply with regulatory obligations or expectations,
including those relating to anti-corruption and anti-bribery and insider
trading, or failure to obtain or maintain requisite permissions for activities
conducted in different jurisdictions, could lead to regulatory censure, fines
or restrictions on activities.
Code of Ethics
Whistleblowing
Personal Securities Transaction
Insider Trading and Market Abuse
Anti-bribery and Corruption
Refresh governance
structure for risk and
compliance matters
Ongoing review of
policies
Completion rate of
compliance certifications
issued to Active
Employees during the
reporting period
To be set
in 2025
Private Equity: 100%
Credit: 100%
Secondaries: 100%
Infrastructure: 100%
Opportunity No material opportunities identified.
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CVC Capital Partners plc Annual Report 2024
Information security
and data privacy
Entity-specific disclosure
Strategic considerations
As a newly listed global private markets manager,
information security is critical for CVC and our
stakeholders. Information security and data privacy
was identified as a material topic in our double
materiality assessment.
The structure and formality of our control
environment is a key priority. During the reporting
period, we have made significant progress in aligning
our information security management systems to
the global ISO 27001:2022 framework. We are
investing in both people and technology to ensure
our information security posture is reflective of our
public profile through enhancing and standardising
Group-wide policies and processes, embedding a
security aware culture through employee training,
and centralising identity and access management
controls.
These improvement programmes will continue to be
a key focus area into 2025.
All activity described below is funded from regular
annual budgets and does not require additional
investment.
Impact, risk and opportunity
management
The double materiality assessment identified one
material impact and one material risk for
information security and data privacy.
Impacts
Data privacy – Employee and investor data
may be accessed and used to the detriment of
the individuals and entities concerned by
outside malicious actors.
Risk
Information security – Failure to anticipate,
detect or prevent a cyber-attack and
subsequent loss of employee or investor data
may result in financial and reputational losses
for a business.
In order to mitigate the identified risk, we provide
information security and data privacy training, which
is compulsory for all employees. We have also
implemented a comprehensive programme to
strengthen our internal information security controls.
Policies
ISO-27001 alignment
The adoption of the ISO 27001:2022 framework as
our information security management system, helps
us to manage the security of our information across
all CVC strategies, including employee and investor
data. The policies and manual outlined on this page
are aligned with this framework. This provides a
systematic approach to managing sensitive
information and ensuring its confidentiality, integrity
and availability. By implementing the framework, we
can identify and mitigate risks to our information
security and data privacy, and continually improve
our security controls. To help maintain a strong
culture of information security and data privacy, we
maintain an information security and data privacy
awareness strategy, covering technical employees,
third parties and executives.
The policies and manual are available on the relevant
strategy’s intranet.
Global Information Security Policy
The purpose of the Global Information Security Policy
is to define the management and handling controls
for information to ensure its protection and ongoing
confidentiality, integrity and availability.
The Global Information Security Policy is the
overarching policy of the complete Information
Security Policy Set and is designed to be usable and
pragmatic, providing a realistic and consistent
approach to managing information across the CVC
Group, including employee and investor data. Its
purpose is to protect the confidentiality, integrity and
availability of our information from compromise, and
enable compliance with statutory and regulatory
obligations.
The policy, and subordinate policies and processes,
applies to Private Equity, Credit and Secondaries
employees, in all locations. CVC DIF has its own
Information Security Policy, which is substantially
similar to the CVC Global Information Security Policy.
The aim is to align this in 2025.
The Chief Technology Officer is accountable for
ensuring that technology solutions support the
proper and appropriate management of information
and data privacy.
The minimum requirements to comply with this
policy are aligned to ISO/IEC 27001:2022 and ISO/
IEC 27002:2022. The relevant clauses within the
Standards are referenced throughout the policy.
Access Controls Policy
The Access Controls Policy is a topic-specific policy,
as defined in our Information Security Controls
Manual. The purpose of this policy is to define the
required identity access management control
measures to be applied to all CVC Group information
assets, to ensure the confidentiality, availability and
integrity of these assets, which include employee and
investor data. This entails managing the life cycle of
identity management, including the provisioning and
de-provisioning of access to all CVC Group
information assets.
This policy applies to all Private Equity, Credit and
Secondaries users (employees, independent service
providers and third parties) who require access to any
CVC information assets, irrespective of business unit
or geographical location. The aim is to align
Infrastructure in 2025.
The Board and the Information Security and Data
Privacy Committee are accountable for
implementing the policy.
Information Security Controls Manual
The Information Security Controls Manual interprets
the requirements of the Information Security Policy
Set. It aims to provide the reader with practical
information to manage the procedures that should
be followed in any given situation.
The controls manual applies to all Private Equity,
Credit and Secondaries employees who provide,
maintain or access CVC’s information. Infrastructure
does not currently have an Information Security
Controls Manual. The aim is to draft a manual for
Infrastructure in 2025.
The Information Security and Data Privacy
Committee is responsible for overseeing information
security and data privacy for the Group (except
Infrastructure), implementing, reviewing, and
maintaining the information security and data
privacy programme and ensuring it aligns with the
organisation’s strategic goals. Infrastructure
maintains its own governance structure.
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CVC Capital Partners plc Annual Report 2024
Actions
2024 Actions
Action Expected outcome
How this contributes to achievement of
policy objectives and targets
Provide information security and
data privacy training to all users:
We provide information security
anddata privacy training to all
usersglobally within our corporate
activities in an effort to ensure
information security. Information
security and data privacy training
isrefreshed annually.
Users are reminded regularly to be
vigilant of cybersecurity risks, which we
expect to lead to a reduced likelihood of
a cybersecurity event.
Completion of cybersecurity training
is expected to lead to a lower
numberof users entering into
riskycyber behaviour.
Monitor and report breaches and
incidents:
Incident management and
reporting procedures are set out in
the Information Security Controls
Manual, and the Global Security
Incident Response Plan provides
structure and guidance to users,
so that they can respond properly
to incidents which may affect the
security, operation, and function
of CVC and its IT and information
assets and business operations.
Prompt action in response to breaches
and incidents is expected to contain
breaches and incidents to minimum
impact, and to enable us to learn from
prior incidents, to be better prepared
forfuture scenarios. This is an
ongoingaction.
This action enables the Information
Security team to monitor the
effectiveness of the policies
detailedabove.
Future plans
Action
Expected outcome,
includingtimehorizon
How this contributes to achievement of
policy objectives and targets
Implement and roll out privileged
access management solution
acrossour IT estate.
Completion expected in 2025. Strengthening of access
managementcontrols.
Mature and build on existing
information security controls.
Progress expected in 2025. Strengthening of information
securityand data privacy controls.
Metrics and targets
CVC has identified two targets relevant to reducing
the identified material sustainability risk and impact.
These currently apply to the Private Equity and Credit
strategies, and the outcomes for these targets are
communicated to the Information Security and Data
Privacy Committee and the GRC. Secondaries and
Infrastructure report these metrics in this report but a
target has not yet been set for those strategies.
Percentage of users completing annual
information security and data privacy training
bydeadline
Annual information security and data privacy
training is mandatory for all users, which
encompasses anyone with an email account from a
CVC domain, including employees, temporary
employees and contractors. Private Equity and
Credit have set a target of 98% of users completing
their annual session of information security and data
privacy training by the deadline as set by the
information security team. Secondaries and
Infrastructure have not yet set a target; a formal
Group-wide target will be set in 2025.
The metrics are presented separately for Secondaries
and Infrastructure as the delivery of training was
tracked and managed separately from Private Equity
and Credit during the reporting period. However, the
outcomes remain comparable across the strategies.
For Private Equity and Credit, completion is tracked
by the e-learning platform. In Secondaries,
completion is tracked in Excel. In Infrastructure,
completion is tracked through the HR Information
System. These completion rates are reported here, as
a percentage of users completing the training
compared with those issued the training, which
excludes leavers. While the training delivered to each
strategy differs, within a strategy, the same training
is provided to all users. Users that join after the date
the training will complete certain training in their
induction training. They will then be included in the
next training when it is issued.
Phish prone score
We conduct quarterly phishing campaigns, which
consist of a phishing campaign being developed,
approved, and deployed to all users, which
encompasses anyone with an email account from a
CVC domain at the date of the campaign, including
employees, temporary employees and contractors.
Currently, the campaigns are devised and delivered
separately in Secondaries and Infrastructure, hence
separate metrics are presented. Private Equity and
Credit receive the same campaign. These metrics are
not comparable across strategies due to the
significant judgement used in devising the phishing
campaign.
The Phish Prone Score is the percentage of users that
have been successfully phished by providing their
credentials to the quarterly phishing campaign,
compared with the users sent the campaign. Users
who are successfully phished are required to
complete an awareness training module. For all
strategies, the phishing failure rate (i.e. those
successfully phished) is tracked and reported from
within the phishing simulation portal. The quarterly
results are averaged for this Annual Report. Private
Equity and Credit have set a target of <5% phishing
failure rate (i.e. percentage of successfully phished
users). Secondaries and Infrastructure have not yet
set a target; a formal Group-wide target will be set in
2025.
For 2024, Private Equity and Credit excluded the Q1
2024 result from the average as they detected an
anomaly in the software, invalidating the results.
Private Equity and Credit have since moved to a
different phishing simulation platform and this issue
has not recurred.
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CVC Capital Partners plc Annual Report 2024
Summary: Information security management
Impacts, risks and opportunities Policy Action Metric Target 2024
Negative impact
Employee and investor data may be accessed and
used to the detriment of the individuals and entities
concerned by outside malicious actors.
Global Information
Management
Access Controls
Information Security
Controls Manual
Provide cybersecurity
training to all users.
Monitor and report
breaches and
incidents.
Percentage of users completing
annual information security and
data privacy training by deadline.
Private Equity and Credit: 98% Private Equity and Credit: 99%
Secondaries: n/a
Infrastructure: n/a
Secondaries: 99%
Infrastructure: 100%
Risk
Failure to anticipate, detect or prevent a cyber-
attack and subsequent loss of employee or investor
data may result in financial and reputational losses
for a business.
‘Phish Prone Score’: Percentage of
users successfully phished during
quarterly phishing campaign
(average).
Private Equity and Credit: <5% Private Equity and Credit: 3%
Secondaries: n/a
Infrastructure: n/a
Secondaries: 1%
Infrastructure: 12%
Opportunity No material opportunities identified.
As phishing campaigns are devised individually by the Information Security teams, there is variability in results. The Q2 outcome for the Infrastructure strategy was particularly likely to result in a failure, hence the high score.
Asa result of this, employees were reminded of the importance of vigilance. The scores across the strategies are not directly comparable as different campaigns were issued, of differing levels of challenge.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
158
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CVC Capital Partners plc Annual Report 2024
Investing responsibly
for long-term growth
Entity-specific disclosure
Strategic considerations
We believe the proactive integration of material
sustainability topics into our risk management and
value-creation processes helps future-proof our
investment portfolio and build trust with external
stakeholders, including clients. We invest on behalf
ofpension funds and other leading institutions into
seven complementary strategies across Private
Equity, Secondaries, Credit and Infrastructure,
totalling €200bn of AUM at the end of the reporting
period. These strategies are not primarily focused
onsustainability objectives. However, material
sustainability considerations are integrated into our
investment processes through the implementation
ofour Group Responsible Investment Policy.
We have processes in place to enable material
sustainability considerations to be integrated
intotheinvestment process, from due diligence,
monitoring and engagement through to exit. The
processes implemented vary between asset classes,
given the nature of the investment strategies, the
level of control the funds have over the underlying
investments, the existence of governance rights and
other relevant factors.
Supported by the Group Responsible Investment
Policy, we seek to apply a consistent set of responsible
investment principles for each of our asset classes.
These principles focus on transparency of approach,
due diligence and portfolio engagement.
Within our Infrastructure strategy, sustainability
performance is linked to remuneration via
sustainability objectives specific to each team and
tothe level of the individual within the firm. This has
been approved at board level within Infrastructure.
Transparency
We aim to report transparently, and promote best
practice in our approach to responsible investment,
which is governed by the Group Responsible
Investment Policy, with aligned guidelines and
policies at the asset-class level.
Recognising our commitment to responsible
investment, each of our strategies is a signatory
tothe United Nations-sponsored Principles for
Responsible Investment (PRI): Private Equity since
2012, Credit and Secondaries since 2021 and
Infrastructure since 2011.
The PRI is an independent body that promotes
responsible investment. It works to understand
theinvestment implications of sustainability factors,
and to support its international network of investor
signatories in incorporating these factors into their
investment and ownership decisions.
The PRI typically collects information from
signatories during May to July each year, and then
releases Transparency and Assessment Reports
containing ‘PRI Scores’ in November, following a
period of analysis and testing. It is the scores from
these reports that we disclose on page 163.
Due diligence
We seek to consider and document material
sustainability topics as part of due diligence
anddecision-making onnewinvestments.
TheSustainability Committee, which includes
representatives from all strategies, and from the
investment advisory and management functions,
reviews and provides recommendations on the
sustainability due diligence policies and processes
implemented within CVC. Throughout the Group,
theSustainability team acts as a centre of excellence
to provide tools, processes and support for the
investment team to implement the Group Responsible
Investment Policy. Additionally, each strategy has its
own policy or guidelines, which are aligned with the
Group Policy. For example, Infrastructure aligns with
the Group Policy through the application of the CVC
DIF Responsible Investment Policy.
Due diligence process
All strategies
When pursuing new investment opportunities, as
aninitial due diligence step, the investment team
typically checks public sources for sustainability
information relevant to the prospective investment,
including adverse sustainability matters. Additionally,
investment teams are required to ensure that the
proposed investment does not violate the Fund
exclusions (Infrastructure) or the requirements of the
Group Exclusions and Critical Risk List referred to in
the Group Responsible Investment Policy (Private
Equity, Credit and Secondaries).
Private Equity
When considering a new investment, investment
teams typically conduct a Sustainability Diagnostic
assessment of the target company, generally with
the support of external advisers. This includes a high-
level assessment of potentially material sustainability
topics that could present significant risks and
opportunities with the potential to impact the value
of the investment. In addition to the Sustainability
Diagnostic, investment teams are asked to
determine the inherent sector sustainability risk,
asper our proprietary risk heatmap, which draws
onthe SASB material topics framework.
During due diligence, building on the findings of
theearly-stage Sustainability Diagnostic, CVC has
processes in place to analyse material sustainability
risks and opportunities, as well as relevant
management activities throughout the investment
review stages on Private Equity deals. For investments
in our Asia funds, investment teams are also required
to complete a checklist aligned with the International
Finance Corporation’s Performance Standards on
Environmental and Social Sustainability.
A summary of material sustainability topics identified
during the materiality analysis and corresponding
outcomes of due diligence is required to be included
in the Investment Committee papers as part of the
investment recommendation process.
Credit
Investment teams review sustainability considerations
for each issuer using our proprietary scorecard
1
.
Inaddition to the topics covered by the scorecard,
investment analysts are expected to take account
ofother sustainability considerations that may also
materially affect a potential investment. Those
considerations that are deemed sufficiently material
are included in the Investment Committee papers.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
159
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CVC Capital Partners plc Annual Report 2024
1 The scorecard process does not apply to securitised investments, secondaries, short term trades under three months, investments entered into by our US-based investment
teams and assets over which the client has agreed a delegation to a third party, due to the remote nature of the investment or the short term nature of the hold.
Secondaries
For GP-led secondaries, single asset deals and
primary investments, Secondaries will request each
underlying GP or manager to complete an initial
sustainability due-diligence questionnaire.
To the extent a material sustainability issue is identified
during due diligence, the investment team will work
tounderstand the issue and, when determined
appropriate, raise the issue with the underlying GP
ormanager. The general approach is then for the
investment team to record likely next steps or risk
mitigants for further consideration in connection
withthe investment decision-making process.
The results of the sustainability due diligence
areincluded in Investment Committee papers.
Infrastructure
After the consultation of the exclusion list for the
respective fund, the Infrastructure investment team
uses a sustainability factor identification tool to
identify potentially material sustainability topics.
Thisinternally developed tool, which incorporates the
SASB material topics framework, aids in determining
the scope for sustainability due diligence, providing
an overview of non-financial factors that could
affect the investment’s financial performance over
the investment holding period, including risks and
value-creation opportunities.
Subsequently, the investment team conducts
sustainability due diligence as part of its investment
analysis, including assessing climate risks where
material. The findings of this due diligence and
recommendations for risk management and
mitigation strategies are presented in the Investment
Committee papers.
Portfolio engagement
During the holding period and through to exit,
wherethere is the opportunity to do so, we carry
outconsistent, structured engagement with
portfoliocompanies and fund assets to monitor their
sustainability performance and, for control positions,
encourage transformation, improved performance,
and risk management.
CVC’s Value Creation Framework (illustrated on the
next page) provides a holistic approach to value
creation. With its application to sustainability as one
of its use cases, it reflects key areas of focus and
illustrates a number of the sustainability topics that
may be considered as material for businesses.
We use this Value Creation Framework as a guiding
tool when engaging directly with investments on
sustainability. We also use it as a guide for portfolio-
level monitoring and reporting.
All activity described below is funded from
regularannual budgets and does not require
additional investment.
Portfolio engagement process: ongoing
sustainability monitoring
All strategies
To the extent a material sustainability issue arises
during the hold period, the investment team will
workto understand the issue and, when determined
appropriate, raise the issue with the underlying
portfolio company, asset, GP or manager. Where
sufficiently material, the investment team are
required to notify appropriate parties within CVC.
Private Equity
From the early stages of the CVC fund ownership
period, we have a number of initiatives in place and
resources available to support portfolio companies
toimprove their sustainability management and,
ultimately, performance. We assess the sustainability
management practices of new investments and
validate the findings of our due diligence typically
within six months of closing. These reviews are
anopportunity for us to engage with portfolio
companies and to offer support to help them on
themanagement of material sustainability topics,
with the aim of protecting and creating value.
In 2024, we enhanced our monitoring of Private
Equity investments from our original four pillar
approach, as described in previous sustainability
reports, to an enhanced approach, capturing seven
dimensions. This was implemented through the
introduction of CVC’s Sustainability Index.
The CVC Sustainability Index tracks maturity across
seven sustainability dimensions, which are scored
individually and aggregated to produce a weighted
average maturity score. The dimensions include the
four pillars from the original approach (materiality
and data, external sustainability rating score,
reporting and commitments, and climate action),
plus an additional three considerations (governance,
strategy and value creation, and risk management).
The results are used to identify areas for
improvement and value creation, and to guide
thedevelopment of sustainability roadmaps with
portfolio companies. To help companies improve
their overall sustainability maturity, we provide
support through, for example, guidance, advice
andresources. We typically decrease the level
ofengagement on sustainability management
practices with portfolio companies as they increase
their maturity and are well positioned to manage
their own sustainability-related matters.
The CVC Sustainability Index is used to help portfolio
companies improve their sustainability management
practices, develop sustainability transformation
roadmaps and align with best practice approaches
across a number of sustainability-related topics.
Italigns with international sustainability frameworks,
as well as our own Value Creation Framework. We will
begin systematically applying the CVC Sustainability
Index across all recent investments in 2025.
In addition, there are common topics across the
portfolio that we look to monitor for tangible
sustainability outcomes. The Value Creation
Framework illustrated on the next page sets out our
holistic approach to value creation. In Private Equity,
we apply the Value Creation Framework to guide
oursustainability engagement with our portfolio
companies and, within each of the categories, we have
identified targeted metrics to track performance and
maturity on a subset of commonly material topics.
Furthermore, we have processes to monitor
materialsustainability-related incidents at portfolio
companies, including the use of third-party business-
intelligence tools. We will engage with portfolio
companies to align on expectations in terms of
management and remediation of an incident as
deemed necessary, should such an incident arise.
In order to measure ongoing sustainability
monitoring in the Private Equity strategy, we track
and report the percentage of portfolio companies
providing responses to our annual Sustainability
Survey, against which we measure their performance
and maturity. Further, we track and report the
number of portfolio companies who report a rating
from an external sustainability rating agency in the
annual Sustainability Survey.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
160
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CVC Capital Partners plc Annual Report 2024
We believe that the proactive integration of material sustainability topicsinto portfolio
companies’ value creation and risk management processes helps future-proof the
investment portfolio. We use our Value Creation Framework as a guiding tool when
engaging directly with investments, where CVC has significant control or is in a position
to implement and it is also used as a guide for portfolio-level monitoring andreporting
across asset classes.
Value Creation Framework
Credit
We require investment analysts to review and
includecommentary on material sustainability
considerations as part of their regular portfolio
monitoring reports that they submit to the relevant
Investment Committee. Furthermore, for each
borrower we update our proprietary sustainability
scorecard periodically (typically, annually).
Wemeasure ongoing sustainability monitoring in
theCredit strategy by tracking and reporting the
percentage of investments by name for which this
scorecard has been completed.
If a material sustainability consideration is identified
during the investment management process, we
expect such a matter to be communicated to the
relevant Investment Committee. Follow-up action
items, if practicable, will be managed by the relevant
investment team. We may consider opportunities to
engage with issuers on sustainability-related matters
if deemed appropriate by the investment analyst or
relevant Investment Committee.
This monitoring excludes trades from our US-based
investment teams. It also excludes securitised
investments, secondaries, short-term trades under
three months, and assets over which the client has
agreed a delegation to a third party, due to the
remote nature of the investment or the short-term
nature of the hold.
Secondaries
Once a year, Secondaries requests underlying GPs
ormanagers covering the majority of its portfolio
byNet Asset Value (NAV) to complete or update
itsstandard sustainability questionnaire. In order
tomeasure ongoing sustainability monitoring in
theSecondaries strategy, we track and report the
percentage of investments or managers by NAV
analysed for sustainability matters during the year,
demonstrated by the completion or update of their
sustainability questionnaire.
Secondaries also uses sustainability business conduct
risk research tools to monitor adverse developments
related to sustainability in its portfolio.
Infrastructure
Infrastructure implements its sustainability strategy
through its bespoke portfolio management
programme, the Sustainability Engagement Program.
This focuses on the areas most relevant to the
sustainability management of Infrastructure’s
investments, which are also captured in our Value
Creation Framework.
Infrastructure seeks to integrate sustainability
factorsinto its Value Creation Plans for its
investments. Thesefactors typically encompass
riskmitigation, the identification of sustainability-
based value opportunities, and strategic
decarbonisation roadmaps.
The Sustainability Engagement Program, which aims
to monitor and drive sustainability performance and
maturity, consists of an annual questionnaire and
co-development of an annual Sustainability Action
Plan consisting of actions that the respective
investment is committed to achieving over the
calendar year. In order to measure ongoing
sustainability monitoring in the Infrastructure
strategy, we track and report the percentage
oftotalAUM, by fair market value (FMV),
ofinvestments participating in this programme.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
161
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CVC Capital Partners plc Annual Report 2024
Impact, risk and
opportunitymanagement
Our double materiality assessment process identified
responsible investment as a material topic and the
following risks and opportunities:
Risk
Loss of value – Sustainability-related risks and
potential impacts are not adequately
identified in investments leading to a downside
risk either through direct valuation reductions,
or through associated reputational harm.
Opportunity
Increased value – Sustainability-related
opportunities are realised within an
investment, increasing its value to the
investment manager and adviser, and
their clients.
Policies
Group Responsible Investment Policy
The purpose of the policy is to define our approach to
managing material sustainability factors within our
investment processes. For the purposes of the policy,
material sustainability factors are defined as those
sustainability issues that we, in our sole discretion,
determine have, or have the potential to have, a
significant impact on an investment’s ability to
create or preserve value for that investment.
The policy was drafted with consideration of the
interests of relevant stakeholders such as clients and
portfolio companies. It outlines our Group-wide
approach to integrating material sustainability
factors in our investment activities, and is
supplemented by asset-level guidelines or policies,
which provide more detail on responsible investment
activities in the different strategies. The application
of the policy is monitored differently in each strategy,
as set out above.
The Board is responsible for approving our Group
sustainability strategy and approving key strategic
decisions regarding responsible investment. Day-to-
day responsibility and accountability is delegated to
the Partner Board, the Sustainability Committee and
other relevant committees and working groups,
including within investment strategies, within CVC.
In line with our status as a signatory to the PRI, the
Responsible Investment Policy has been drafted to
align with the PRI’s six principles. In addition, we may
consider a number of frameworks and international
standards in our responsible investment approach
including, but not limited to, the SBTi, the SASB
standards, the 10 principles of the UN Global
Compact and the Task Force on Climate-related
Financial Disclosures.
Asset-level guidelines have been developed for
Private Equity, Credit and Secondaries, to provide
alignment of each strategy with the Group
Responsible Investment Policy. They detail the
processes to be followed by investment teams
asthey move through the different stages
ofaninvestment.
CVC DIF Responsible Investment Policy
Infrastructure has its own Responsible Investment
Policy, which is aligned with the Group Responsible
Investment Policy and can be found on CVC DIF’s
website at www.cvcdif.com/sustainability.
Actions
2024 actions
Action Expected outcome
How this contributes to achievement
ofpolicy objectives and targets
Further developed the
responsible investment
governance framework,
withthe updated Responsible
Investment Policy being
approved by the Sustainability
Committee and the Board.
Clear and formalised governance
of responsible investment across
the Group.
Provides a framework to assess
compliance with Group Responsible
Investment Policy.
Developed a process to ensure
that sustainability due diligence
is carried out, documented and
tracked for new investments in
the Private Equity, Credit and
Secondaries strategies.
Sustainability due diligence of all new
investments completed, documented
and tracked.
Ensures sustainability factors are
considered, documented and tracked
as part of the investment decision-
making process.
Developed the CVC Sustainability
Index for the Private Equity
strategy.
Development of the CVC Sustainability
Index ready for rollout in Private Equity.
Formalises sustainability monitoring
and drives transformation for
investments in the Private Equity
strategy.
Future plans
Action Expected outcome, including time horizon
How this contributes to achievement
ofpolicy objectives and targets
Formally implement CVC
Sustainability Index for a
structured approach to
engagement with Private Equity
investments.
Formal implementation in 2025. Holistic monitoring of sustainability
matters for Private Equity investments
through an enhanced approach to
increasing the maturity of
sustainability management and
driving value creation.
Implement formal tracking of
sustainability due diligence for
new Infrastructure investments.
Evidence of consideration of
sustainability due diligence in new
Infrastructure investments is retained.
Implementation in 2025.
Ensures sustainability factors are
documented as part of the
investment decision-making process.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
162
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CVC Capital Partners plc Annual Report 2024
PRI topic Private Equity Credit Secondaries Infrastructure
Policy, Governance
and Strategy
4/5 4/5 4/5 5/5
Asset-specific
rating
Private equity
(Direct): 5/5
Fixed Income
(Corporate): 4/5
Fixed Income
(Securitised): 3/5
Fixed Income
(Private Debt): 4/5
Private Equity
(Indirect): 3/5
Infrastructure: 5/5
Confidence
building measures
4/5 4/5 4/5 5/5
Due diligence: Percentage of new investments
1
where sustainability is considered
The percentage of investments signed and
completed during the year that included
sustainability in their due diligence process. Excludes
due diligence performed on additional investment
into existing investments. Each percentage is
calculated by comparing the number of new
investments on which sustainability due diligence
was conducted with the number of new investments.
Private Equity
– The percentage of investments by name entered
into during the reporting period where investment
teams have confirmed that that due diligence
wasconducted on sustainability topics material
tothe investment.
Credit
– The percentage of investments by name entered
into during the reporting period for which
sustainability due diligence was completed.
Excludes securitised investments, secondaries,
short-term trades under three months and assets
over which the client has agreed a delegation
toathird party, due to the remote nature of the
investment or the short-term nature of the hold.
Performing Credit investments entered into by our
US-based investment teams have been excluded
from this reporting period, but the process to
include these investments in this metric is being
developed for disclosure.
Secondaries
– The percentage of investments by name entered
into during the reporting period, analysed for
sustainability matters during the year.
Infrastructure
– Whilst Infrastructure carries out due diligence
onnew investments, the process to evidence
andreport on this metric is being developed for
disclosure in the next reporting period. As this is
anentity-specific disclosure, we have elected to
exclude Infrastructure from reporting on this metric
for this reporting period.
Portfolio engagement: Percentage participation
in annual sustainability monitoring programmes
The percentage of investments undergoing annual
sustainability monitoring during the reporting
period.This is compared with the investments
heldatthe beginning (Private Equity, Secondaries,
Infrastructure) or end (Credit) of the reporting period.
Private Equity
– Response rate of annual Sustainability Survey:
thepercentage of portfolio companies by name
responding to the annual Sustainability Survey on
the survey platform. This is calculated by dividing
the number of portfolio companies by name
responding to the annual Sustainability Survey
bythe number of portfolio companies to whom
theSustainability Survey was sent (95% of
portfoliocompanies).
– External sustainability rating: the percentage of
names confirming that they have an external
sustainability rating as part of the annual
Sustainability Survey. Excludes non-respondents
tothe Sustainability Survey. This is calculated by
dividing the number of portfolio companies by name
confirming that they have an external sustainability
rating by the number of portfolio companies
returning the Sustainability Survey (89% of those
towhom the Sustainability Survey was sent).
Credit
– The percentage of investments by name for which
the sustainability scorecard is updated during
thereporting period, calculated by dividing the
number of names with completed scorecards by
the number of names at the end of the reporting
period. Excludes new investments, securitised
investments, secondaries, short-term trades under
three months, and assets over which the client has
agreed a delegation to a third party, due to the
remote nature of the investment or the short-term
nature of the hold.
Secondaries
– The percentage of investments or managers by
NAV analysed for sustainability matters during
theyear, demonstrated by the completion or
update of their sustainability questionnaire. This is
calculated by dividing the NAV of investments that
were analysed for sustainability matters during the
year by the NAV of investments held at the start of
the reporting period.
Infrastructure
– The percentage of total AUM, by FMV, of
investments participating in the Sustainability
Engagement Program. This is calculated by
dividing the FMV of companies that participated
by the FMV of investments at the start of the
reporting period.
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
163
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CVC Capital Partners plc Annual Report 2024
1. Investments that are signed and completed.
Metrics and targets
We monitor the following metrics as part of our commitment to responsible investment. We have set a target
of carrying out sustainability due diligence on 100% of our new investments, across all strategies, from 2025.
We have not yet set targets for ongoing monitoring of existing investments, or for PRI scores.
Each strategy employs a different methodology and, other than for due diligence for new investments, will
have a different expected outcome due to the different business models and asset classes. The outcome of
each metric should be considered in the context in which it is presented.
The metrics and targets below have been developed in order to measure the management of material
sustainability factors within our investment processes, in line with our Responsible Investment Policy.
Transparency: PRI scores
We track and monitor our PRI scores, which are issued annually by the PRI (www.unpri.org). We have not yet
set targets as we are awaiting revised methodology we anticipate to be issued by the PRI.
1 Investments that are signed and completed.
Summary: Investing responsibly for long-term growth
Impacts, risks and opportunities Policy Action Metric Target 2024
Impact No material impacts
identified.
n/a n/a n/a n/a n/a
Risk
Sustainability-related risks and
potential impacts are not
adequately identified in
investments leading to a
downside risk either through
direct valuation reductions, or
through associated
reputational harm.
Responsible Investment Policy
Asset-level Guidelines
Private Equity
CVC Credit
CVC Secondary Partners
CVC DIF Responsible
Investment Policy
Formalisation of responsible
investment governance
Sustainability due diligence on
new investments
Annual monitoring of existing
investments
UN PRI Scores
No target set – awaiting
revised methodology from PRI
See below for 2024 scores
Percentage of new
investments where
sustainability is considered
Target for each strategy is to
be set at 100% from 2025
Private Equity: 100%
Credit: 95%
Secondaries: 100%
Infrastructure: from 2025
Opportunity Sustainability-related
opportunities are realised
within an investment,
increasing its value to the
investment manager and
adviser, and their clients.
Percentage participation in
annual sustainability
monitoring programmes
No targets set - targets to be
set in 2025 based on new
methodologies
Private Equity (external rating): 81%
Private Equity (survey respondents): 89%
Credit (scorecard completion): 99%
Secondaries (NAV analysed): 91%
Infrastructure (AUM participating): 84%
PRI topic Private Equity Credit Secondaries Infrastructure
Policy, Governance
and Strategy
4/5 4/5 4/5 5/5
Asset-specific
rating
Private equity
(Direct): 5/5
Fixed Income
(Corporate): 4/5
Fixed Income
(Securitised): 3/5
Fixed Income
(Private Debt): 4/5
Private Equity
(Indirect): 3/5
Infrastructure: 5/5
Confidence
building measures
4/5 4/5 4/5 5/5
Highlights
oftheYear
CEO Review Our Approach Our Strategies
andPerformance
Financial
Review
Risk Overview Governance
Report
Sustainability
Report
Financial
Statements
Additional
Information
164
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CVC Capital Partners plc Annual Report 2024
Independent Auditor’s
LimitedAssurance Report
tothe Directors of
CVCCapitalPartners PLC
(CVC) on its Consolidated
Sustainability Statement
Our limited assurance conclusion
We have conducted a limited assurance
engagement on the sustainability information
inCVC’s Consolidated Sustainability Statement
(the“Sustainability Statement”) included on pages
94 to 164 of the Annual Report of CVC (the “Group”)
for the year ended 31 December 2024.
Based on the procedures we have performed
andtheevidence we have obtained, nothing
hascome toour attention that causes us to
believethat theSustainability Statement is not,
inallmaterial respects:
– Prepared in accordance with the European
Sustainability Reporting Standards (“ESRS”),
including that the process carried out
bytheGroupto identify the sustainability
information tobe reported is in accordance
withthe description set out in Basis of
Preparationof the Sustainability Statement;
– Compliant with the reporting requirements
provided for in Article 8 of Regulation (EU)
2020/852 (the “Taxonomy Regulation”).
Basis for our limited assurance
conclusion
We conducted our limited assurance engagement in
accordance with Dutch Standard 3810N Assurance-
opdrachten inzake duurzaamheidsverslaggeving
(Assurance engagements relating to sustainability
reporting) which is a specified Dutch standard
thatisbased on the International Standard on
Assurance Engagements 3000 (Revised) Assurance
engagements other than audits or reviews of
historical financial information (“ISAE 3000 (revised)”)
and the International Standard on Assurance
Engagements 3410 Assurance engagements
ongreenhouse gas statements (“ISAE 3410”).
Our responsibilities under this standard are further
described in the section of this report titled
‘Auditor’sresponsibilities’.
In conducting our engagement, we complied with
the independence requirements of the FRC’s Ethical
Standard and the ICAEW Code of Ethics. The ICAEW
Code is founded on fundamental principles of
integrity, objectivity, professional competence and
due care, confidentiality and professional behaviour.
We applied the International Standard on Quality
Management (UK) 1 (“ISQM (UK) 1”). Accordingly,
wemaintained a comprehensive system of quality
management including documented policies and
procedures regarding compliance with ethical
requirements, professional standards, and applicable
legal and regulatory requirements.
We believe that the evidence we have obtained
issufficient and appropriate to provide a basis
forourconclusion.
Inherent limitations of the
sustainability information in the
Sustainability Statement
Inherent limitations exist in all assurance
engagements.
ESRS and the Taxonomy Regulation are designed
fora specific purpose and because of this the
sustainability information may not be suitable
foranother purpose.
Sustainability information for which the applicable
criteria are self-defined, as included in the Basis
ofPreparation, the nature of this sustainability
information, and absence of consistent external
standards allow for different, but acceptable,
measurement methodologies to be adopted
whichmay result in variances between entities.
The adopted measurement methodologies may also
impact the comparability of sustainability matters
reported by different entities and from year to year
within an entity as methodologies develop.
In reporting forward-looking information in
accordance with ESRS, the Directors of the Group are
required to prepare the forward-looking information
on the basis of disclosed assumptions about events
that may occur in the future and possible future
actions by the Group. The actual outcome is likely to
be different since anticipated events frequently may
not occur as expected. Forward-looking information
relates to events and actions that have not yet
occurred and may never occur. We do not obtain
assurance on the achievability of this forward-
looking information.
In determining the disclosures in the Sustainability
Statement, the Directors of the Group may interpret
undefined legal and other terms. Undefined legal
and other terms may be interpreted differently,
including the legal conformity of their interpretation
and, accordingly, are subject to uncertainties.
Our conclusion is not modified in respect of
thesematters.
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CVC Capital Partners plc Annual Report 2024
Other information
The Directors of the Company are responsible
forheother information. The other information
comprises the information included in the
Group’sAnnual Report but does not include the
Sustainability Statement and our Limited Assurance
Report thereon.
Our limited assurance conclusion on the
Sustainability Statement does not cover the other
information and we do not express any form of
assurance conclusion thereon.
In connection with our limited assurance
engagement on the Sustainability Statement,
ourresponsibility is to read the other information
identified above and, in doing so, consider whether
the other information is materially inconsistent with
the Sustainability Statement, or our knowledge
obtained in the limited assurance engagement,
orotherwise appears to be materially misstated.
If,based on the work we have performed, we
conclude that there is a material misstatement of
this other information, we are required to report that
fact. We have nothing to report in this regard.
Directors’ responsibilities for
thesustainability statement
The Directors are responsible for being satisfied that
the Annual Report, taken as a whole, is fair, balanced
and understandable. The Directors are responsible
for the preparation of the sustainability statement in
accordance with the ESRS, including the double
materiality assessment process carried out by the
Group as the basis for the sustainability statement
and disclosure of material impacts, risks and
opportunities in accordance with the ESRS. As part of
the preparation of the sustainability statement, the
Directors are responsible for compliance with the
reporting requirements provided for in Article 8 of
Regulation (EU) 2020/852 (Taxonomy Regulation).
The Directors are responsible for:
– Selecting and applying appropriate sustainability
reporting methods, entity specific criteria/
disclosures and making assumptions and
estimates about individual disclosures within the
sustainability information that are reasonable in
the circumstances.
– Developing, implementing, and reporting the
double materiality assessment process to identify
the information reported in the Sustainability
Statement in accordance with ESRS and for
disclosing this process on pages 102 to 108 of the
Sustainability Statement. This responsibility
includes understanding the impacts, risks and
opportunities connected with the Group’s own
operations and upstream and downstream value
chain, including through its products or services,
aswell as through its business relationships,
anddeveloping an understanding of its affected
stakeholders; the identification of the actual and
potential impacts (both negative and positive)
related to sustainability matters, as well as risks
and opportunities that affect, or could reasonably
be expected to affect, the Group’s financial
position, financial performance, cash flows,
accessto finance or cost of capital over the short-,
medium-, or long-term; the assessment of the
materiality of the identified impacts, risks and
opportunities related to sustainability matters by
selecting and applying appropriate thresholds;
andmaking assumptions and estimates that are
reasonable in the circumstances.
– Designing, implementing and maintaining internal
processes and controls over information relevant
tothe preparation of the Sustainability Statement
to ensure that they are free from material
misstatement, including whether due to fraud
orerror.
– Providing sufficient access and making available
all necessary records, correspondence, information
and explanations to allow successful completion
ofour limited assurance engagement.
Auditor’s responsibilities for the limited
assurance engagement on the
sustainability statement
We planned and performed the assurance
engagement to obtain limited assurance about
whether the Sustainability Statement in scope of
ourconclusion, is free from material misstatement,
whether due to fraud or error, and to issue a Limited
Assurance Report that includes our conclusion.
Misstatements can arise from fraud or error and
areconsidered material if, individually or in the
aggregate, they could reasonably be expected
toinfluence decisions of users on the basis of the
Sustainability Statement.
As part of a limited assurance engagement,
weexercise professional judgement and maintain
professional scepticism throughout the engagement.
We planned and performed procedures to obtain
sufficient appropriate evidence in order to express
anindependent limited assurance conclusion on the
Sustainability Statement.
We:
– Performed risk assessment procedures, including
obtaining an understanding of internal controls
relevant to the engagement, to identify disclosures
within the sustainability information where
material misstatements are likely to arise, whether
due to fraud or error, but not for the purpose of
providing a conclusion on the effectiveness of the
Group’s internal control.
– Designed and performed procedures responsive
towhere material misstatements are likely to arise
in the Sustainability Statement. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
asfraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
– Designed and performed procedures to evaluate
whether the double materiality assessment process
is in accordance with the description of the process
as described in the Sustainability Statement.
– Communicated matters that may be relevant to
the Sustainability Statement to the appropriate
party including identified or suspected non-
compliance with laws and regulations, fraud
orsuspected fraud, and bias in the preparation
ofthe Sustainability Statement.
– Reported our conclusion in the form of an
independent Limited Assurance Report to
theDirectors.
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Assurance Report of the Independent Auditor (of non-financial indicators) continued
CVC Capital Partners plc Annual Report 2024
Summary of the work performed
The nature, timing and extent of procedures selected
depend on professional judgement, including the
identification of disclosures within the sustainability
information where material misstatements are likely
to arise, whether due to fraud or error, in the
Sustainability Statement.
The procedures in a limited assurance engagement
vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement.
Consequently, the level of assurance obtained in
alimited assurance engagement is substantially
lower than the assurance that would have been
obtained had a reasonable assurance engagement
been performed.
In conducting our limited assurance engagement, we:
– Obtained an understanding of the Sustainability
Statement reporting process performed by the
Group, including the preparation of the
Sustainability Statement.
– Evaluated the overall presentation and balance
ofthe Sustainability Statement, and considered
whether the Sustainability Statement as a whole,
including the sustainability matters and
sustainability information, is disclosed in
accordance with the Applicable Criteria.
– Obtained an understanding of the double
materiality assessment (“DMA”) process by
performing inquiries to understand the sources
ofthe information used by management
(e.g.,stakeholder engagement, business plans and
strategy documents) and reviewing CVC’s internal
documentation of this process.
– Evaluated whether the evidence obtained from our
procedures about the DMA process is consistent
with the description of the process set out in the
Sustainability Statement.
– Performed inquiries of relevant personnel and
analytical procedures on material disclosures
within the Sustainability Statement.
– Performed substantive procedures based
onasample basis on selected disclosures.
– Reconciled selected disclosures with the
corresponding disclosures in the financial statements
and Management Report within the Annual Report.
– Obtained an understanding of the Group’s process
to identify taxonomy-eligible and taxonomy-
aligned economic activities and the corresponding
disclosures in the Sustainability Statement.
– Performed an assessment of the suitability and
availability of criteria (and the benchmarks used to
measure or evaluate the sustainability information)
to determine whether they are suitable for the
engagement circumstances.
– Performed risk assessment procedures to
understand the underlying sustainability
information and identify areas where a material
misstatement of the Sustainability Statement is
likely to arise, and to provide a basis for designing
procedures to obtain limited assurance to support
our conclusion. Risk assessment involves obtaining
an understanding of the Company, its environment,
processes, and information systems relevant to the
preparation of the Sustainability Statement.
– Through inquiries of management, obtained
anunderstanding of internal controls relevant to
the Sustainability Statement, the quantification
process, and data used in preparing the
Sustainability Statement, the methodology for
gathering qualitative information, and the process
for preparing and reporting the Sustainability
Statement. We have not evaluated the design
ofparticular internal control activities, obtained
evidence about their implementation or tested
their operating effectiveness.
– Through inquiries of management, documented
whether an external expert has been used in the
preparation of the Sustainability Statement, then
evaluated the competence, capabilities, and
objectivity of that expert in the context of the work
performed and also the appropriateness of that
work as evidence.
– Inspected documents relating to the Sustainability
Statement, including board committee minutes
and where applicable internal audit outputs to
understand the level of management awareness
and oversight of the Sustainability Statement.
– Performed procedures over the activities of
significant third parties that perform key controls
relevant to the Sustainability Statement.
– Performed procedures over the Sustainability
Statement, including recalculation of relevant
formulae used in manual calculations and
assessment of whether the data has been
appropriately aggregated.
– Performed procedures over underlying data to
assess whether the data has been collected and
reported in accordance with the requirements
including verifying to source documentation.
– Performed procedures over the Sustainability
Statement including assessing management’s
assumptions and estimates.
– Accumulated misstatements and control
deficiencies identified, assessing whether material.
The assessment of what is material is a matter of
professional judgement and includes consideration
of both the amount (quantity) and the nature
(quality) of misstatements.
– Read the narrative accompanying the
Sustainability Statement with regard to the
applicable criteria, and for consistency with
ourfindings.
– Reviewed that the rationale for setting the 2019
baseline information is appropriate and consistent
with our understanding of the entity and
itsenvironment.
We performed our engagement to obtain limited
assurance over the preparation of the Sustainability
Statement in accordance with the Applicable
Criteria. We draw your attention to the following:
– Our procedures did not include obtaining
assurance over the information provided by
suppliers or third parties.
– The S1-17 Incidents, complaints and severe human
rights impacts disclosure is derived from reported
events relating to employees and subcontractors.
As a result, our testing may not identify
misstatements relating to completeness, for
example in instances where events may have
occurred but have not been reported.
Use of our report
This Assurance Report is made solely to the
Company’s Directors, as a body, in accordance
withDutch Standard 3810N Assurance-opdrachten
inzake duurzaamheidsverslaggeving (Assurance
engagements relating to sustainability reporting),
and our agreed terms of engagement. Our work
hasbeen undertaken so that we might state to the
Group’s Directors, as a body, those matters we have
agreed to state to them in this Assurance Report and
for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to
anyone other than the Group and its Directors, as a
body, for our work, for this Assurance Report, or for
our conclusions.
Deloitte LLP
London, UK
19 March 2025
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Assurance Report of the Independent Auditor (of non-financial indicators) continued
CVC Capital Partners plc Annual Report 2024
Financial
Statements
In this section:
Independent Auditor’s Report 169
Consolidated Statement
ofProfitorLoss
179
Consolidated Statement
ofComprehensive Income
179
Consolidated Statement
ofFinancialPosition
180
Consolidated Statement
ofChangesinEquity
181
Consolidated Statement
ofCashFlows
182
Notes to the Consolidated
Financial Statements
183
Company Financial
StatementofProfit or Loss
242
Company Financial
StatementofFinancial Position
242
Company Financial
StatementofChanges in Equity
243
Company Statement of Cash flows 244
Notes to the Company
FinancialStatements
245
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CVC Capital Partners plc Annual Report 2024
Independent auditor’s report to the members
ofCVCCAPITALPARTNERS PLC
Report on the audit of the financial statements
1. Opinion
In our opinion, the financial statements of CVC Capital Partners plc (the ‘company’) and its subsidiaries
(the ‘group’):
– give a true and fair view of the state of the group’s and of the company’s affairs as at 31 December
2024 and of the group’s profit for the year then ended;
– have been properly prepared in accordance with IFRS Accounting Standards as adopted by the
European Union and as issued by the International Accounting Standards Board (‘IASB’); and
– have been prepared in accordance with Companies (Jersey) Law, 1991.
We have audited the financial statements which comprise:
– the consolidated and company statements of profit or loss;
– the consolidated statement of comprehensive income;
– the consolidated and company statements of financial position;
– the consolidated and company statements of changes in equity;
– the consolidated and company statements of cash flows;
– the related notes to the consolidated financial statements 1 to 35; and
– the related notes to the company financial statements 1 to 13.
The financial reporting framework that has been applied in their preparation is applicable law and IFRS
Accounting Standards as adopted by the European Union and as issued by the IASB.
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and
applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities
for the audit of the financial statements section of our report.
We are independent of the group and the company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the
‘FRC’s’) Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. The non-audit services provided to the group for the
year are disclosed in note 9(b) to the financial statements.
We confirm that the non-audit services prohibited by the FRC’s Ethical Standard were not provided to the
Group, with the exception of one group corporate tax advisory service provided by our component auditor,
Ernst & Young LLP (‘EY UK’). As soon as we became aware of this breach, we discussed the matter with EY UK
and the Audit Committee and the service ceased. Whilst the service was prohibited, we consider that EY UK
had appropriate safeguards as there was no self-review threat as the team providing the work was not
involved in the component audit and the component audit team did not audit balances affected by their
advice. We also considered that the fees for the work of £43,000 were not material to the group or EY, or of a
level that would give rise to a significant self-interest threat. As an additional safeguard, the engagement
quality review team challenged the group audit team’s conclusions in this area. Based on the lack of self-
review and insignificant self-interest threats, we believe an objective, reasonable and informed third party
would agree that our independence was not impaired.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
3. Summary of our audit approach
Key audit matters The key audit matters that we identified in the current year were:
– Valuation of fund investments
– Recognition of carried interest from funds and performance fees from credit vehicles
– Valuation of goodwill and other intangible assets arising from the acquisition of CVC
DIF, and the valuation of the forward liability for the acquisition of the remaining
shares in CVC DIF
– Identification of related party transactions following the Pre IPO Reorganisation and
subsequent acquisitions
Materiality The materiality that we used for the group financial statements was €28m which was
determined on the basis of 5% of adjusted profit before taxation.
Scoping We focused our group audit scope primarily on the audit work at 51 components. These
components represent the principal business units and account for 98% of the group’s
revenue, 94% of the group’s profit before tax and 97% of the group’s net assets.
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Independent Auditorʼs Report
CVC Capital Partners plc Annual Report 2024
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the group’s and company’s ability to continue to adopt the
going concern basis of accounting included:
– obtaining an understanding of relevant controls over management’s model and process for performing their
assessment of going concern;
– obtaining an understanding of the nature of the financing facilities available to the group, including their
repayment terms, their use in the liquidity management strategy of the group, and the extent of the group’s
reliance on them;
– assessing the reasonableness of the assumptions used in the group’s strategic business plan approved by the
Board;
– challenging the reasonableness of the assumptions underpinning the group’s forecasts including considering
third-party and market data;
– assessing whether management appropriately considered expected future liquidity requirements relating to
the group’s undrawn capital commitments and carried interest clawback obligations to the Funds;
– assessing the impact of the wider macro-economic environment over the going concern period and whether
this is reflected in stress testing with reference to lower investment returns impacting income recognition and
cash;
– evaluating the historical accuracy of forecasts prepared by management;
– evaluating the clerical accuracy used to prepare the forecasts and reperforming management’s sensitivity
analysis;
– performing additional sensitivity analysis to further challenge whether management has adequately
considered additional downside scenarios; and
– assessing the appropriateness of the group’s disclosure concerning the going concern basis
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the group’s and company’s ability to
continue as a going concern for a period of at least twelve months from when the financial statements are
authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial statements of the current period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified. These matters included those which had the
greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts
of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
5.1 Valuation of fund investments
Key audit matter
description
As at 31 December 2024, the group held €1,585m (2023: €834m) investments in private
equity managed by the group included in financial assets at fair value through profit
and loss.
As discussed in note 3(b), the group adopts a valuation methodology in line with IFRS 13
“Fair Value Measurement” and applies the International Private Equity & Venture
Capital Guidelines (“IPEV Guidelines”). The group predominantly applies an earnings
based valuation technique. The nature of these valuations means that despite the
valuation methodologies adopted, the exit value determined by the market at the time
of realisation may be materially different from the year end valuation. Due to the
unobservable inputs and assumptions used to value the majority of these illiquid
investments, the assessment of fair value is subjective and requires significant and
complex judgements to be made by management.
The complex nature of the methodologies employed to determine the fair value of the
underlying equity and debt instruments, combined with the number of significant
judgements and high degree of estimation uncertainty associated with unobservable
inputs, mean that we have identified valuation of fund investments as a key audit
matter.
Key inputs and assumptions where management has exercised significant judgement
in determining the valuation estimates of the underlying investments are:
– the appropriateness of the inputs into the valuation models including the financial
metrics, budgeted or historical earnings and adjustments made to earnings for
exceptional items;
– the set of public comparable companies and recent transactions selected used to
derive the comparative multiple applied against earnings, and
– the discount or premium applied to the comparable multiples to reflect the points of
difference with the company being valued.
Further information related to this area is set out in the Audit Committee report on
page 68, and in notes 3(b), 17 and 27 to the group financial statements.
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Independent Auditorʼs Report continued
CVC Capital Partners plc Annual Report 2024
How the scope
ofour audit
responded to the
key audit matter
We have performed the following procedures:
– Management’s Control Environment: Obtained an understanding of the relevant
controls over the group’s assessment of the valuation of the underlying investments.
This included enquiry of management regarding the valuation governance structure
and protocols around their oversight of the valuation process, and review of the Portfolio
Monitoring Committee meeting minutes to evidence the Committee’s oversight, review
and challenge of the valuations and associated key inputs and assumptions.
– Methodology: Assessed and challenged whether management’s valuation
methodologies complied with the requirements of IFRS 13 and the relevant IPEV
guidelines
– Assumptions and Inputs: With the assistance of our valuation specialists, we
formed an independent view on the appropriateness of the key assumptions and
inputs used in the valuation of investments that are subject to a high degree of
estimation uncertainty, with reference to relevant industry and market valuation
considerations and data points including any consideration of contradictory
evidence. Specifically we:
• assessed the appropriateness of the key assumptions (including the impact of
climate change and macroeconomic factors) made by management in the
calculation of fair value;
• assessed whether key inputs in the valuation models were in agreement with
source data, including independently obtained portfolio company financial
information and evaluated the mathematical accuracy of the valuation models;
• assessed the suitability of the comparable companies used in the calculation of the
earnings multiples, and the appropriateness of any discounts or premiums applied
to the multiples, supported by calibration analysis;
• challenged management on the applicability and completeness of adjustments
made to multiples by obtaining rationale and supporting evidence for each
adjustment;
• assessed the appropriateness of the portfolio company financial information,
including business plans used in the valuation and any relevant adjustments made
by obtaining rationale and supporting evidence; and
• assessed material differences between the exit prices of investments realised during
the year and the prior year fair value, to inform our assessment of potential
management bias over the valuation of fund investments.
– Assessing Disclosures: Assessed whether the disclosures relating to estimation
uncertainty were in accordance with the requirements of IAS 1 “Presentation of
Financial Statements” and IFRS 13.
Key observations As a result of our procedures, we concluded that the valuation of fund investments is
reasonable.
5.2 Recognition of carried interest from funds and performance fees from credit vehicles
Key audit matter
description
For the year ended 31 December 2024, the group reported carried interest income from
private equity funds and performance fees from credit vehicles of €173m (2023:
€163m). As disclosed in note 3, the group receives a share of fund profits as variable
consideration for the provision of various investment management services to the
funds/credit vehicles, dependent on the performance of the relevant fund/vehicle and
provided that the minimum return hurdle has been met (the “preferred return”). In
respect of carried interest the group is typically entitled to 15% to 30% of the carried
interest (the “house-carry”), with the remaining percentage payable to employees and
former employees for services provided to the funds directly (collectively the “non-
house carry”).
Significant judgement is required to determine whether the group is required to recognise
some or all non-house carry that is not directly payable to the group as revenue in
accordance with IFRS 15 “Revenue from contracts with customers”. This necessitates a
detailed analysis of the services provided by the recipients of the non-house carry to the
underlying funds, to assess whether the services provided create an entitlement of the
group to the non-house carry. Where such an entitlement exists, non-carry revenue is
required to be included in revenue recorded by the group. For the year 31 December
2024, the group recorded no revenue in relation to non-house carry.
Additionally, management makes assumptions and uses estimates to determine the
recognition, timing and measurement of revenue from carried interest. In accordance
with IFRS 15, revenue should only be recognised to the extent that it is highly probable
that a significant reversal of accumulated revenue recognised would not be concluded
at final settlement of the fund. To reflect the reversal risk, the group applies a 30% –
50% discount to current unrealised fund values for private equity funds when
calculating the carried interest revenue recognised. For credit vehicles, a probability
weighting is applied to the potential future cash flows receivable on a case by case
basis. The discounts applied to private equity funds and credit vehicles depend on
specific segment risks of underlying investments and expected average remaining
holding period of each fund.
The complexity of the accounting judgement and estimation uncertainty associated to
revenue recognition resulted in the identification of this as a key audit matter.
Further information related to this area is set out in the Audit Committee report on
page 67, and in notes 2(e) and 3 to the group financial statements.
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CVC Capital Partners plc Annual Report 2024
How the scope
ofour audit
responded to the
key audit matter
We have performed the following procedures:
– Management’s Control Environment: Obtained an understanding of the relevant
controls over the group’s recognition and measurement of carried interest/
performance fees;
– Methodology: Assessed the appropriateness of the accounting policy used by
management associated with the recognition of carried interest/performance fees,
and the approach used by management to determine whether or not non-house
carry should be recognised as group revenue;
– Methodology implementation: Inspected key agreements and meeting minutes to
analyse the services provided to the funds and assessed the appropriateness of
management’s judgement regarding the inclusion or exclusion of non-house carry
from the group’s revenue in accordance with IFRS 15;
– Reperformance: Developed an independent recalculation of carried interest/
performance fees based on the audited position of the underlying fund/vehicles and
the contractual terms in the relevant agreements;
– Application of discount: Challenged the appropriateness of the valuation discount
applied (the carried interest “constraint” or the probability weighting applied to the
potential future cash flows for credit performance fees) by performing an assessment
of historical realisations and associated carried interest to analyse trends in
unrealised fund values and fund performance; and
– Disclosure: Assessed the group’s disclosures, with reference to the requirements
relating to estimation uncertainty in IAS 1 and revenue recognition required under
IFRS 15.
Key observations As a result of our procedures, we concluded that recognition of carried interest from
funds and performance fees from credit vehicles is appropriately recorded and
disclosed.
5.3 Valuation of goodwill and other intangible assets arising from the acquisition of CVC DIF and the
valuation of the forward liability for the acquisition of the remaining shares in CVC DIF
Key audit matter
description
As described in note 5(c), the group completed the acquisition of an initial interest of
60% in DIF Management Holding B.V. (“referred to as CVC DIF”) on 1 July 2024 for
consideration of €590m, settled by a combination of cash and shares.
The transaction has been accounted for in accordance with IFRS 3 “Business
Combinations”. Goodwill of €265m and other intangible assets of €688m were
recognised as a result of the transaction. There is estimation uncertainty related to the
valuation of the identified other intangible assets for customer relationships. The value
of goodwill to be recognised is determined following valuation of the intangible assets,
and is therefore linked to the same estimations and judgements. The key areas of
uncertainty relate to assessment of future fund-raising activity and the level of
management fee income that CVC DIF will earn, and the assumptions about the
extent to which existing fund investors will participate within these future fund-raisings.
The valuation is also sensitive to the discount rate applied.
As described in note 3(e), the group acquired 60% of CVC DIF with an obligation to
purchase the remaining 40% over two tranches in a future period. As a result the group
recognised an initial forward liability at fair value for the deferred consideration of
€537m for the remaining 40%. This was subject to remeasurement at year end and has
been valued at €788m. The areas of estimation uncertainty described above are also
relevant to the valuation of the forward liability as this is calculated using a discounted
cash flow based on future performance of CVC DIF.
Further information related to this area is set out in the Audit Committee report on
page 68, and in notes 3 and 5(c) to the group financial statements.
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CVC Capital Partners plc Annual Report 2024
How the scope
ofour audit
responded to the
key audit matter
We have performed the following procedures:
– Management’s Control Environment: Obtained an understanding of the relevant
controls over the group’s assessment of purchase price accounting for the CVC DIF
transaction and the determination of the fair value of the forward liability;
– Methodology: Assessed the appropriateness of the methodology adopted by
management for the valuation of customer relationships, goodwill and the forward
liability . This included an assessment of whether the accounting treatment of the
forward liability was appropriate in terms of the sale and purchase agreement;
– Assumptions and inputs: With the involvement of our valuation specialists, we:
• assessed whether the key assumptions in the valuation of customer relationships
made by management are reasonable. These include key assumptions in the
discounted cash flow model such as the discount rate, and assumptions regarding
participation by existing investors in future fund launches;
• assessed whether the key assumptions used in the valuation of the forward liability
are reasonable such as projections for management fee and carried interest
revenue, and the discount rate applied within management’s model;
• performed additional procedures to identify whether there was any evidence that
potentially contradicted the judgements made by management and assessed
whether management’s estimates were reasonable in light of any such potentially
contradictory evidence identified;
• assessed the supportability of the forecasts, including assumptions regarding
revenue from future fund launches by evaluating management’s historical ability
to accurately forecast fund raises;
• obtained management’s valuation workings and recalculated these for
mathematical accuracy; and
– Disclosure: assessed the group’s disclosures, with reference to the requirements
relating to estimation uncertainty in IAS 1, IFRS3 for business combinations and IFRS
13 in relation to fair value measurement.
Key observations As a result of our procedures, we concluded that the valuation of goodwill and other
intangible assets arising from the acquisition of CVC DIF and the valuation of the
forward liability for the acquisition of remaining shares in CVC DIF is reasonable.
5.4 Identification of related party transactions following of the Pre-IPO Reorganisation and subsequent
acquisitions
Key audit matter
description
The IPO reorganisation and the acquisitions which followed fundamentally
transformed the group and resulted in several areas of complex merger and acquisition
accounting as described in note 4 and note 5.
As a result of the changes to the organisation structure in the period there is a risk that
related party transactions and transactions between the CVC Capital Partners plc
group (‘the listed group’) and entities not included within the plc perimeter following the
Pre-IPO Reorganisation are not appropriately identified or not disclosed appropriately
as being at arm’s length within the annual report of the group in line with IAS 24
“Related party disclosures”. The relationships between the listed group and the non-
group perimeter entities are complex and this increases the judgement required by
management to identify and disclose these relationships. Further information related
to this area is set out in the Audit Committee report on page 67, and in note 32 on
related parties.
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How the scope
ofour audit
responded to the
key audit matter
We have performed the following procedures:
– Management’s Control Environment: Obtained an understanding of the controls over
the group’s assessment for the identification and completeness of related parties;
– Methodology for IPO reorganisation: Inspected relevant legal documents and
agreements to understand the key terms and steps of the Pre-IPO Reorganisation.
Assessed accounting treatment under common control, identification of CVC as the
acquirer of the advisory group and control assessment for the advisory and credit
groups as the key areas in relation to the Pre-IPO Reorganisation that gave rise to
complex accounting. We assessed management’s proposed accounting and concluded
on the appropriateness of the accounting treatment adopted in compliance with
reporting standards.
– Assessment of related party transactions: we have
• inspected and assessed management’s assessment outlining their identification,
accounting and disclosure of related party transactions as defined by IAS 24.
• challenged management’s assessment of post IPO control and significant influence
relationships with entities outside the listed group, including considering potentially
contradictory evidence;
• challenged the completeness of the identified related parties and related party
transactions disclosed in the annual report by obtaining an understanding of any
transactions identified to be outside of the normal course of business or considered
potentially not to be undertaken on market terms that were identified during the course
of our audit. This included making direct inquiries of legal and compliance teams across
the scope of the listed group and entities not included within the plc perimeter.
• tested the accuracy and completeness of the related party transactions disclosure by
obtaining confirmations from departments who represent entities of the listed group
and entities not included within the plc perimeter as to their view of related party
transactions and compared this to our view of potential related party transactions as
informed by inspecting the general ledger.
• assessed whether related party transactions are executed at arm’s length by tracing a
sample of them to relevant supporting documents such as legal agreements or
invoices;
• through reviewing minutes of meetings of the Board of Directors and key agreements,
assessed whether there are new related party transactions entered into that were
significant or outside the normal course of business.
– Disclosure: Assessed the group’s disclosures, with reference to the requirements relating
to estimation uncertainty in IAS 1 and IAS24 for related parties.
Key observations As a result of our procedures, we concluded that management had appropriately
identified and disclosed as being at arm’s length the group’s related party relationships.
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable
that the economic decisions of a reasonably knowledgeable person would be changed or influenced. We use
materiality both in planning the scope of our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as
follows:
Group financial statements Company financial statements
Materiality €28m €27m
Basis for determining
materiality
5% of adjusted profit before taxation.
We have adjusted profit before
taxation by removing investment
income and adding back the change
in the valuation of the forward
liability. We have made these
adjustments as we believe these
provide users of the financial
statements a more stable benchmark
period on period.
Net assets capped at 95% of the group
materiality. This represents 1.4% of net
assets.
Rationale for the
benchmark applied
We consider profit before tax to be
the appropriate benchmark, being a
key metric for the users of the
financial statements.
The company does not generate external
income and its main purpose is to hold
investments in the underlying
subsidiaries of the group. We therefore
concluded that net assets represented
the most appropriate benchmark
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CVC Capital Partners plc Annual Report 2024
Group materiality £28m
Component performance
materiality range
€8m to €16m
Audit Committee reporting threshold
£1.4m
l
Adjusted PBT
l
Group materiality
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate,
uncorrected and undetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements Company financial statements
Performance materiality 60% of group materiality 60% of company materiality
Basis and rationale
fordetermining
performance materiality
In preparation for its initial public offering CVC Capital Partners plc has been
strengthening its control and governance processes but, reflective of the current
state of maturity of the control environment and governance arrangements, we
have established performance materiality at 60%. Further information related to
the control environment is set out in the Audit Committee report on page 71.
6.3. Error reporting threshold
We agreed with the audit committee that we would report to the committee all audit differences in excess of
€1.4m for the group and €1.3m for the company, as well as differences below that threshold that, in our view,
warranted reporting on qualitative grounds. We also report to the audit committee on disclosure matters that
we identified when assessing the overall presentation of the financial statements.
7. An overview of the scope of our audit
7.1. Identification and scoping of components
We performed our group scoping by obtaining an understanding of the group and its environment, including
group-wide controls, and assessing the audit risks. We determined each entity within the group to be a
separate component. We assessed risk factors in each significant account and qualitative risk factors at each
component including understanding regulatory risk, history of errors and if each component has a separate
control environment. Given the IPO within the period and the acquisition of CVC DIF there are a number of
changes to the corporate structure which we incorporated into our risk assessment. We have performed audits
of specified classes of transactions, balances and disclosures on 51 components. Our scope of audit work
results in testing of 98% of Revenue, 94% Profit before Tax and 97% Net Asset Value. Our audit work at the 51
components was executed at levels of performance materiality applicable to each individual component
which were lower than group materiality and ranged from €8m to €16m.
The components selected for audit procedures were in the United Kingdom, Channel Islands, United States and
the Netherlands. In the United Kingdom and Channel Islands, component auditors performed procedures on the
valuation of investments in funds and other balances within the consolidated funds. We worked with locally
based component auditors in the Netherlands and United States where they performed procedures on balances
for which the books and records were maintained in that geography. Where a component was within our scope
and audited by another firm, we engaged non-Deloitte auditors. All other work required to support the group
opinion including the audit of the consolidation has been performed by the group audit engagement team.
Revenue
98%
2%
Profit before tax
94%
6%
Net assets
97%
3%
l
Specified audit procedures
l
Review at group level
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CVC Capital Partners plc Annual Report 2024
Adjusted PBT €564m
7.2. Our consideration of the control environment
We have obtained an understanding of the relevant internal controls of the group. We involved our IT
specialists to obtain an understanding of relevant IT controls over the group’s IT systems. Due to the
developing control environment we performed a fully substantive audit. We made a number of
recommendations to management for control improvements.
For 38 components, the accounting records are maintained by service organisations. We obtained an
understanding of the controls in place at the service organisations. However we did not plan to or place
reliance on the controls in place at these service organisations.
7.3. Our consideration of climate-related risks
In planning our audit, we considered the potential financial impacts on the group and its financial statements
of climate change and the transition to a low carbon economy. We considered management’s own
assessment of the related risks and opportunities as described on page 102, together with our cumulative
knowledge and experience of the group and the environment in which it operates. We assessed management’s
disclosures about critical judgements and key sources of estimation uncertainty, including the potential impact
of climate change on those judgements and estimates, in note 3 to the financial statements. We assessed
management’s going concern and viability disclosures, and did not identify any significant impact of climate
change on those disclosures given the timeframes of those assessments.
We have performed a limited assurance review of the sustainability report on pages 87 to 164 in the period and
this work has informed our view of the climate-related risks facing the group. The separate assurance report is
included within this annual report on pages 165 to 167. We have considered whether information included in
the climate related disclosures in the Annual Report is consistent with our understanding and knowledge of the
business and the financial statements. Our knowledge obtained in the audit is from attending meetings with
key management personnel responsible for assessing the impact of climate change at the group, work
performed over the sustainability statement, reviewing the group’s risk register, reviewing board packs and
meeting minutes and evaluating any public announcements or initiatives to which the group has committed.
7.4. Working with other auditors
The group audit team have directed and supervised the work of the component audit teams during the course
of the year. As part of our planning, we issued detailed instructions to our component audit teams, the group
engagement partner led planning and concluding meetings with all component teams to discuss our risk
assessment for the components and remained in contact throughout the audit process.
We issued detailed instructions to the component auditors and directed and supervised their work through a
number of in-person and remote meetings with the component auditors during the planning, performance
and completion stages of our audit.
The valuation of investments in funds is a key audit matter and significant to the group financial statements
and we have directed and supervised the work of the component fund audit teams by performing an asset by
asset risk assessment to enable us to provide detailed queries on an asset by asset basis to direct their work to
focus on specific inputs or assumptions. We performed on site reviews of each investment including the use of
valuations specialists to ensure appropriate challenge of management on the subjective inputs and
assumptions and sourcing appropriate confirmatory and contradictory evidence. We also performed site visits
to the Netherlands and at the and offices of the UK based component teams to perform in-person reviews of
audit working papers.
We are satisfied that the level of involvement of the group audit partner and teams in the component audits
has been extensive and has enabled us to conclude that sufficient audit evidence has been obtained to
support our opinion on the group financial statements as a whole.
8. Other information
The other information comprises the information included in the annual report, other than the financial
statements and our auditor’s report thereon. The directors are responsible for the other information contained
within the annual report.
Our responsibility is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or
otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine
whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the board responsibilities statement, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal
control as the directors determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the
company’s ability to continue as a going concern, disclosing as applicable, matters related to going concern
and using the going concern basis of accounting unless the directors either intend to liquidate the group or the
company or to cease operations, or have no realistic alternative but to do so.
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CVC Capital Partners plc Annual Report 2024
10.Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s
website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
11. Extent to which the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below.
11.1. Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-
compliance with laws and regulations, we considered the following:
– the nature of the industry and sector, control environment and business performance including the design of
the group’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance
targets;
– results of our enquiries of management, internal audit, the directors and the audit committee about their
own identification and assessment of the risks of irregularities, including those that are specific to the group’s
sector;
– any matters we identified having obtained and reviewed the group’s documentation of their policies and
procedures relating to:
• identifying, evaluating and complying with laws and regulations and whether they were aware of any
instances of non-compliance;
• detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected
or alleged fraud;
• the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
– the matters discussed among the audit engagement team including significant component audit teams and
relevant internal specialists, including tax, valuations, IT and forensic specialists, regarding how and where
fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific
procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the group operates in,
focusing on provisions of those laws and regulations that had a direct effect on the determination of material
amounts and disclosures in the financial statements. The key laws and regulations we considered in this
context included the Companies (Jersey) Law 1991 and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the
financial statements but compliance with which may be fundamental to the group’s ability to operate or to
avoid a material penalty. These included the group’s regulatory solvency requirements and environmental
regulations.
11.2. Audit response to risks identified
As a result of performing the above, we identified the valuation of fund investments, recognition of carried
interest from funds and performance fees from credit vehicles, and identification of related party transactions
following the Pre-IPO Reorganisation and subsequent acquisitions as key audit matters related to the potential
risk of fraud. The key audit matters section of our report explains the matters in more detail and also describes
the specific procedures we performed in response to those key audit matters.
In addition to the above, our procedures to respond to risks identified included the following:
– reviewing the financial statement disclosures and testing to supporting documentation to assess compliance
with provisions of relevant laws and regulations described as having a direct effect on the financial
statements;
– enquiring of management, the audit committee and in-house legal counsel concerning actual and potential
litigation and claims;
– performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks
of material misstatement due to fraud;
– reading minutes of meetings of those charged with governance, reviewing internal audit reports and
reviewing correspondence with key tax authorities and regulators;
– in addressing the risk of fraud through management override of controls, testing the appropriateness of
journal entries and other adjustments; assessing whether the judgements made in making accounting
estimates are indicative of a potential bias; and evaluating the business rationale of any significant
transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement
team members including internal specialist and component audit teams, and remained alert to any
indications of fraud or non-compliance with laws and regulations throughout the audit.
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CVC Capital Partners plc Annual Report 2024
Report on other legal and regulatory requirements
12. Opinion on other matter prescribed by our engagement letter
In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in
accordance with the basis described on page 77.
13. Corporate Governance Statement
Based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the Corporate Governance Statement is materially consistent with the financial statements
and our knowledge obtained during the audit:
– the board’s statement with regards to the appropriateness of adopting the going concern basis of
accounting and any material uncertainties identified set out on page 53;
– the board’s explanation as to its assessment of the group’s prospects, the period this assessment
covers and why the period is appropriate set out on page 52;
– the boards’ statement on fair, balanced and understandable set out on page 70;
– the board’s confirmation that it has carried out a robust assessment of the emerging and principal
risks set out on page 46;
– the section of the annual report that describes the review of effectiveness of risk management and
internal control systems set out on pages 45 and 46; and
– the section describing the work of the audit committee set out on page 65.
14.Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies (Jersey) Law, 1991 we are required to report to you if, in our opinion:
– we have not received all the information and explanations we require for our audit; or
– proper accounting records have not been kept by the company, or proper returns adequate for our audit
have not been received from branches not visited by us; or
– the company financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
We were appointed by the board on 9 July 2024 to audit the financial statements for the year ending 31
December 2024 and subsequent financial periods. This is our first year audit of the group headed by CVC
Capital Partners plc following its establishment. Prior to the establishment of CVC Capital Partners plc, we
previously audited CVC Management Holdings II Limited, CVC Capital Partners Advisory Group Holding
Foundation and CVC Credit Partners Group Holding Foundation.
15.2. Consistency of the audit report with the additional report to the audit committee
Our audit opinion is consistent with the additional report to the audit committee we are required to provide in
accordance with ISAs (UK).
16. Use of our report
This report is made solely to the company’s members, as a body, in accordance with Article 113A of the
Companies (Jersey) Law, 1991. Our audit work has been undertaken so that we might state to the company’s
members those matters we are required to state to them in an auditor’s report and those matters we have
expressly agreed to report to them on in our engagement letter and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company and the
company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
We have provided assurance on whether the annual financial report has been prepared using the single
electronic format specified in the ESEF RTS and have publicly reported separately to the members on this.
Terri Fielding, ACA
For and on behalf of Deloitte LLP
Recognised Auditor
London, United Kingdom
19 March 2025
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CVC Capital Partners plc Annual Report 2024
All figures in € 000
Notes
Dec-24
Dec-23
Management fees
7
1, 18 1,2 34
743, 36 8
Carried interest and performance fees
16
17 3,1 70
163, 17 0
Investment income
20 7,5 28
81 ,4 28
Other operating income
3 ,7 33
6 ,7 52
Total revenue
1,5 65, 66 5
994 ,7 18
Advisory fee expense
—
(400 ,4 37)
Personnel expenses
8
(4 27 ,66 8)
(59 ,90 2)
General and administrative expenses
9
(19 3,8 38)
(95, 88 3)
Change in valuation of forward liability
22
(463 ,3 05)
(84 ,8 25)
Foreign exchange (losses)/gains
(3, 18 8)
5 ,7 06
Expenses with respect to investment vehicles
(4 ,01 0)
(4 40)
EBITDA
47 3, 656
35 8,9 37
Depreciation and amortisation
10
(12 5,0 33)
(25 ,99 1)
Total operating profit
348 ,62 3
33 2,9 46
Finance income
12 ,8 78
10, 788
Finance expense
11
(53, 03 5)
(31, 25 1)
Profit before income tax
3 08, 46 6
31 2, 483
Income tax charge
12
(3 50)
(9, 769)
Profit after income tax
308 ,1 16
30 2,7 14
Attributable to:
Equity holders of the parent
22 5, 295
280 ,4 93
Non-controlling interests
29
82 ,82 1
22, 221
Earnings per share
€
€
Basic and diluted
13
0. 24
0.3 9
All figures in € 000
Dec-24
Dec-23
Profit after income tax
30 8,1 16
30 2,7 14
Items that may be reclassified subsequently to profit
or loss (net of tax):
Exchange differences on translation of foreign
operations
41, 510
(16 ,4 14)
Other comprehensive income/(loss) for the year
41 ,51 0
(16, 41 4)
Total comprehensive income for the year
34 9, 626
286 ,3 00
Attributable to:
Equity holders of the parent
263 ,42 4
26 6, 258
Non-controlling interests
86 ,2 02
2 0,0 42
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Consolidated Statement
of Profit or Loss
Consolidated Statement of
Comprehensive Income
For the year ended 31 December 2024
For the year ended 31 December 2024
CVC Capital Partners plc Annual Report 2024
The notes to the accounts form an integral part of these consolidated financial statements.
All figures in € 000
Notes
Dec-24
Dec-23
Assets
Non-current assets
Property and equipment
14
178 ,66 1
17 ,4 67
Goodwill and other intangible assets
15
1,8 67, 21 1
53 0,0 52
Carried interest and performance fees receivables
16
254 ,92 6
190 ,4 61
Financial assets at fair value through profit or loss
17
1, 890 ,5 32
93 5,6 74
Trade and other receivables
18
169 ,0 34
107 ,14 2
Deferred tax assets
12
84, 74 4
8 ,3 71
Total non-current assets
4,4 45 ,10 8
1,7 89 ,16 7
Current assets
Trade and other receivables
18
203, 35 7
57, 82 8
Cash and cash equivalents
20
6 18, 28 9
1 00 ,67 7
Total current assets
82 1,6 46
15 8,5 05
Total assets
5,2 66 ,75 4
1,9 47 ,67 2
Liabilities
Non-current liabilities
Borrowings
21
1, 59 4, 248
1,4 32 ,40 2
Forward liability
5, 22
78 7, 57 8
592 ,0 19
Lease liabilities
23
124, 42 0
9,5 89
Provisions
24
22 9,2 76
176 ,38 0
Trade and other payables
25
35, 424
6,0 33
Deferred tax liabilities
12
2 48, 14 9
21, 94 9
Total non-current liabilities
3, 019 ,0 95
2, 238 ,3 72
All figures in € 000
Notes
Dec-24
Dec-23
Current liabilities
Borrowings
21
82, 081
6,90 2
Lease liabilities
23
1 6,3 23
2,2 91
Trade and other payables
25
30 0, 038
92, 01 8
Income tax payable
45, 507
1, 02 6
Total current liabilities
44 3, 949
10 2,2 37
Total liabilities
3,46 3, 044
2, 340 ,6 09
Net assets/(liabilities)
1,80 3, 71 0
(39 2,9 37)
Stated capital
29
1,0 22, 41 9
2,5 00
Other reserves
29
78, 03 2
297 ,6 90
Net exchange differences reserve
6 0,0 78
15, 891
Accumulated losses
(1 74 ,80 3)
(9 27, 40 9)
Equity attributable to equity holders of the parent
98 5,7 26
(61 1,3 28)
Non-controlling interests
29
8 17, 98 4
21 8, 391
Total equity
1, 80 3,7 10
(3 92 ,9 37)
These financial statements were approved by the Board on 19 March 2025 and were signed on its behalf by:
Fred Watt
Director
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Consolidated Statement of Financial Position
As at 31 December 2024
CVC Capital Partners plc Annual Report 2024
The notes to the accounts form an integral part of these consolidated financial statements.
Total attributable to
Net exchange equity holders of the Non-controlling
All figures in € 000
Notes
Stated capital
Other reserves
differences reserve
Accumulated losses
parent
interests
Total equity
As at 1 January 2024
2, 500
2 97 ,69 0
15, 89 1
(92 7,4 09)
(61 1, 328)
218 ,3 91
(3 92, 93 7)
Profit for the period
—
—
—
225 ,2 95
22 5,2 95
82 ,8 21
308 ,1 16
Movement in currency reserve
—
—
38 ,12 9
—
38, 129
3,3 81
4 1, 510
Total comprehensive income
—
—
38 ,12 9
225 ,29 5
26 3,4 24
86 ,20 2
34 9, 626
Stated capital issuance
29
250 ,0 00
—
—
—
250 ,00 0
—
250, 00 0
Capitalised costs
29
(1, 58 3)
—
—
—
(1 ,58 3)
—
(1 ,58 3)
Acquisitions
1
5, 29
1,6 48 ,45 9
(22 2, 982)
6,0 58
(2 00, 30 6)
1, 231 ,2 29
585 ,06 4
1,8 16 ,29 3
Capital reduction
29
(8 76, 95 7)
—
—
87 6,9 57
—
—
—
Share-based payments
7
—
3,3 24
—
—
3,3 24
—
3 ,32 4
Other distributions
29
—
—
—
(29 9, 013)
(2 99 ,01 3)
(126 ,8 75)
(42 5, 888)
Other contributions
29
—
—
—
15 0, 934
150 ,9 34
53, 941
2 04 ,87 5
Transfers between shareholders
29
—
—
—
(1, 26 1)
(1, 26 1)
1, 26 1
—
As at 31 December 2024
1, 022 ,4 19
78, 03 2
60, 078
(1 74, 80 3)
98 5, 726
817 ,98 4
1,8 03 ,71 0
1. Includes acquisitions related to the Pre-IPO Reorganisation, CVC Secondaries NCI, and CVC DIF. Refer to note 5 for further details.
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Total attributable to
Net exchange equity holders of the Non-controlling
All figures in € 000
Notes
Stated capital
Other reserves
differences reserve
Accumulated losses
parent
interests
Total equity
As at 1 January 2023
1,2 50
515 ,15 1
30 ,1 26
(81 4, 020)
(26 7,4 93)
110 ,73 0
(1 56, 76 3)
Profit for the period
—
—
—
280 ,4 93
2 80 ,49 3
22 ,22 1
302, 71 4
Movement in currency reserve
—
—
(14 ,23 5)
—
(1 4, 235)
(2 ,1 79)
(16, 41 4)
Total comprehensive income
—
—
(14 ,2 35)
2 80, 49 3
2 66 ,25 8
20, 04 2
2 86 ,30 0
Stated capital issuance
29
1 ,25 0
—
—
—
 1,2 50 — 1,2 50
Divestment of interest in subsidiary
29
—
—
—
(8, 32 3)
(8, 323)
91 ,28 1
82 ,95 8
Other distributions
29
—
(219 ,7 93)
—
(70 2,3 51)
(92 2, 144)
(2 5, 462)
(947 ,6 06)
Other contributions
29
—
2,3 32
—
316 ,7 92
319 ,1 24
21 ,8 00
34 0,9 24
As at 31 December 2023
2,5 00
2 97, 69 0
15, 891
(927 ,4 09)
(61 1,3 28)
218 ,39 1
(39 2, 937)
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Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
CVC Capital Partners plc Annual Report 2024
The notes to the accounts form an integral part of these consolidated financial statements.
All figures in € 000
Notes
Dec-24
Dec-23
Cash flows from operating activities
Cash generated from operations
30
5 95 ,71 2
2 34, 80 9
Cash received from carried interest entities
24
14 3,7 24
121 ,6 66
Carried interest additions
16
(77 4)
—
Income taxes paid
(4 9,5 35)
(1 0, 206)
Net cash inflows from operating activities
689 ,1 27
34 6,2 69
Cash flows from investing activities
Payments for property and equipment (16, 77 0) (3, 668)
Payments for intangible assets (4 ,4 08) —
Purchase of investments
17
 (479 ,4 45) (11 4,1 31)
Proceeds from sale of investments 3 25, 45 8 12 8, 016
Proceeds from repayment of loans receivable 12 4,0 38 166 ,2 26
Funding of loans receivable (17 8, 830) (5 4,6 19)
Acquisition of subsidiaries, net of cash acquired
5
 (27, 18 9) —
Interest received 9,0 24 4, 73 8
Net cash (outflows used in)/inflows from investing
activities
(24 8, 122)
12 6, 562
All figures in € 000
Notes
Dec-24
Dec-23
Cash flows from financing activities
Proceeds from issue of shares by the Company
2 50 ,00 0
1 ,2 50
Capitalised share issuance costs
(1 ,5 83)
—
Divestment of interest in subsidiary
29
—
47, 025
Contributions from non-controlling interests
51, 86 8
21 ,80 0
Dividends paid to non-controlling interests
29
(12 6, 875)
(25 ,46 2)
Other contributions
29
140 ,00 0
31 9, 124
Other distributions
29
(2 99 ,01 3)
(9 22, 14 4)
Net proceeds from private placement note
26
19 6, 768
—
Drawings on credit facilities
26
668 ,1 91
594 ,1 02
Repayment of credit facilities
26
(7 57, 94 9)
(495 ,9 04)
Interest paid
(42 ,2 66)
(29 ,3 54)
Payment of principal portion of lease liabilities
23, 26
(1 6,5 42)
(1, 65 3)
Net cash inflows from/(outflows used in) financing
activities
62, 59 9
(4 91 ,21 6)
Net increase/(decrease) in cash and cash equivalents
50 3,6 04
(18 ,3 85)
Cash and cash equivalents at the beginning of the
period
10 0, 677
11 6,5 50
Net foreign exchange difference
14 ,0 08
2,5 12
Cash and cash equivalents at the end of the period
20
6 18 ,28 9
100 ,6 77
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Consolidated Statement of Cash Flows
For the year ended 31 December 2024
CVC Capital Partners plc Annual Report 2024
The notes to the accounts form an integral part of these consolidated financial statements.
1. General information and basis of preparation
General information
CVC Capital Partners plc (the Company or the parent) (formerly known as CVC Holdings Limited)
was incorporated on 21 December 2021 in Jersey, Channel Islands under the Companies (Jersey) Law 1991.
Until 30 April 2024 its ultimate parent was CVC Capital Partners SICAV-FIS S.A. (the SIF). On 30 April 2024,
the ordinary shares of no nominal value were listed on Euronext Amsterdam, the regulated market operated
by Euronext Amsterdam N.V. The registered office is at Level 1, IFC 1, Esplanade St Helier, Jersey JE2 3BX.
The consolidated financial statements of the Company as at 31 December 2024 comprise the Company and
its subsidiaries (together referred to as the Group). The material subsidiaries affecting the results or net assets
of the Group in the year are listed in note 33 to the consolidated financial statements.
Following the Group’s listing on Euronext Amsterdam (the IPO) and Group reorganisation (the Pre-IPO
Reorganisation) described below, the principal activities of the Company and its subsidiaries are to provide
management and adviser services to various investment funds and credit vehicles and to act as an investment
holding group.
The consolidated financial statements of the Group for the year ended 31 December 2024 were authorised for
issue on 19 March 2025.
Basis of preparation
The directors have prepared the annual consolidated financial statements of the Group in accordance with,
and conforming to, International Financial Reporting Standards as adopted by the EU (IFRS), as issued by
the International Accounting Standards Board (IASB), the requirements of the Dutch Financial Supervision
Act (Wet op het Wetboek), the applicable provisions of the Dutch Civil Code (Burgerlijk Wetboek) and the
Companies (Jersey) Law 1991. The Company has previously prepared consolidated financial statements
under IFRS, with an IFRS transition date of 1 January 2022. The consolidated financial statements have
been prepared under the historical cost convention, except for financial instruments measured at fair value.
The consolidated financial statements are presented in euro and all values are in thousands (€ 000) except
where otherwise indicated. The directors have also prepared the Company’s stand-alone financial statements
in accordance with the requirements of the Companies (Jersey) Law 1991.
Pre-IPO Reorganisation
In preparation for listing, a series of corporate restructurings were completed to form the Group, with the
Company as the legal parent and comprising the following subsidiary groups: The Management Group
(Management Group) which includes CVC Management Holdings II Limited (MHII) and each of its subsidiary
undertakings, the Advisory Group (Advisory Group) which includes CVC Capital Partners Advisory Group
Holding Foundation and each of its subsidiary undertakings, and the Credit Group (CVC Credit) which includes
CVC Credit Partners Group Holding Foundation and each of its subsidiary undertakings.
The significant events of the Pre-IPO Reorganisation were the acquisition by the Company of the Advisory
Group on 1 January 2024, CVC Credit on 15 April 2024, and the Management Group on 29 April 2024.
The Company and the Management Group have been under common control since the Company’s
incorporation in 2021. As a result, the acquisition of MHII by the Company was an acquisition under common
control and has been reflected within these consolidated financial statements from the start of the
comparative period. Refer to note 4 for further details.
The acquisitions of the Advisory Group and CVC Credit were not under common control, and have been
reflected from the respective dates of each acquisition. Refer to note 5 for further details.
The following other Pre-IPO Reorganisation events took place:
– The acquisition of the following entities by the Company: CVC Services Holdings S.à r.l., Theatre Directorship
Services Alpha S.à r.l., Theatre Directorship Services Beta S.à r.l., Theatre Directorship Services Delta S.à r.l.,
Theatre Directorship Services Gama S.à r.l., Theatre Directorship Services Kappa S.à r.l., Theatre Directorship
Services Lambda S.à r.l., CVC Silver Nominee Limited, CVC Credit Partners Investments Holdings Limited,
Private Investment Europe VII GP Limited, Private Investment Europe VIII GP Limited, Private Investment Asia
V GP Limited, Private Investment Asia V Feeder GP Limited, Private Investment Strategic Opportunities II GP
Limited, and Private Investment Growth II GP Limited.
– The disposal of the following entities by the Company: RemainCo 1 Limited, RemainCo 2 Limited, and CVC
Advisers (Benelux) SA/NV.
Certain of the above acquisitions/disposals involved entities which were under common control of the Group
as at the date of their acquisition/disposal. These transactions have been reflected within these consolidated
financial statements from the start of the comparative period. All other transactions are reflected from the
date of the acquisition/disposal. Refer to notes 4 and 5 for further details.
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Notes to the Consolidated Financial Statements
CVC Capital Partners plc Annual Report 2024
1. General information and basis of preparation (continued)
Going concern
The consolidated financial statements have been prepared on a going concern basis as the directors have
a reasonable expectation that the Group has adequate resources to continue in operational existence for a
period of at least 12 months from the date of issue of these consolidated financial statements having assessed
the business risks, financial position and resources of the Group. Refer to the Group’s going concern statement
on page 53 for further details.
Adoption of new revised standards
The Group has adopted all relevant amendments to existing standards and interpretations issued by the
International Accounting Standards Board, and endorsed by the EU, that are effective from 1 January 2024.
The Group applied for the first time amendments to IAS 1 ‘Presentation of Financial Statements’ related to the
requirements for classifying liabilities as current or non-current. The amendments clarify:
– what is meant by a right to defer settlement;
– that a right to defer must exist at the end of the reporting period;
– that classification is unaffected by the likelihood that an entity will exercise its deferral right; and
– that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of
a liability not impact its classification. In addition, an entity is required to disclose when a liability arising from
a loan agreement is classified as non-current and the entity’s right to defer settlement is contingent on
compliance with future covenants within 12 months.
The amendments have resulted in additional disclosures in note 21, but have not had an impact on the
classification of the Group’s liabilities.
The Group did not implement the requirements of any other standards or interpretations that were in issue
but were not required to be adopted by the Group at the year-end date. The new and amended standards
and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial
statements and which are expected to have a material impact on the Group’s financial statements are
disclosed below. The Group intends to adopt these new and amended standards and interpretations when
they become effective.
IFRS 18 ‘Presentation and Disclosure in Financial Statements’
In April 2024, the IASB issued IFRS 18, which replaces IAS 1. IFRS 18 introduces new requirements for
presentation within the statement of profit or loss, including specified totals and subtotals. Furthermore,
entities are required to classify all income and expenses within the statement of profit or loss into one of five
categories: operating, investing, financing, income taxes and discontinued operations, whereof the first three
are new.
It also requires disclosure of newly defined management-defined performance measures, subtotals of income
and expenses, and includes new requirements for aggregation and disaggregation of financial information
based on the identified ‘roles’ of the primary financial statements and the notes. In addition, narrow-scope
amendments have been made to IAS 7 ‘Statement of Cash Flows’, which include changing the starting
point for determining cash flows from operations under the indirect method, from ‘profit or loss’ to ‘operating
profit or loss’ and removing the optionality around classification of cash flows from dividends and interest.
In addition, there are consequential amendments to several other standards.
IFRS 18, and the amendments to the other standards, is effective for reporting periods beginning on or after
1 January 2027, but earlier application is permitted and must be disclosed. IFRS 18 will apply retrospectively.
The Group is currently working to identify all impacts the amendments will have on the primary financial
statements and notes to the financial statements.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
2. Material accounting policies
(a) Assessment of control
Control is achieved when the Group has power over the relevant activities, exposure to variable returns from
the investee, and the ability to affect those returns through its power over the investee.
The Group controls an investee (entity) if, and only if, the Group has all of the following:
– power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities
of the investee);
– exposure, or rights, to variable returns from its involvement with the investee; and
– ability to use its power over the investee to affect its returns.
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control listed above.
When the Group holds less than a majority of the voting rights of an investee, it has power over the investee
when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee
unilaterally. The Group considers all relevant facts and circumstances in assessing whether or not the Group’s
voting rights in an investee are sufficient to give it power, including:
– the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other
vote holders;
– potential voting rights held by the Group, other vote holders or other parties;
– rights arising from other contractual arrangements; and
– any additional facts and circumstances that indicate that the Group has, or does not have, the current
ability to direct the relevant activities at the time when decisions need to be made, including voting patterns
at previous shareholders meetings.
The assessment of control is based on all relevant facts and circumstances and the Group reassesses its
conclusion if there is an indication that there are changes in facts and circumstances.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the
Group loses control over the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed
of during the year are included in the consolidated statement of comprehensive income from the date the
Group gains control until the date when the Group ceases to control the subsidiary.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
the members of the Group are eliminated on consolidation.
Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. Interests of
non-controlling shareholders that are present ownership interests entitling their holders to a proportionate
share of net assets upon liquidation may initially be measured at fair value or at the non-controlling interests’
proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement is
made on an acquisition-by-acquisition basis.
Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests
at initial recognition plus the non-controlling interests’ share of subsequent changes in equity.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction.
(b) Business combinations and goodwill
Business combinations are accounted for by applying the acquisition method. The cost of a business
combination is the fair value of the consideration given, liabilities incurred or assumed and of equity
instruments issued. Costs attributable to the business combination are expensed in the consolidated statement
of profit or loss. Where control is achieved in stages the cost is the consideration at the date of each
transaction. For each business combination, the Group elects whether to measure the non-controlling interests
in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets.
On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent
liabilities. Intangible assets are only recognised separately from goodwill where they are separable and arise
from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably
measured, they are disclosed on the same basis as other contingent liabilities.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the
acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument
and within the scope of IFRS 9 ‘Financial Instruments’, is measured at fair value with the changes in fair
value recognised in the consolidated statement of profit or loss in accordance with IFRS 9.
Goodwill recognised represents the excess of the fair value of the purchase consideration over the fair value
of the Group’s interest in the identifiable assets, liabilities and contingent liabilities acquired.
Goodwill is not amortised but is assessed for impairment annually or more frequently if events or changes
in circumstances indicate potential impairment loss. Impairment is determined for goodwill by assessing
the recoverable amount of the Group’s cash generating unit (CGU) to which the goodwill relates. When
the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised
in the consolidated statement of profit or loss. Impairment losses relating to goodwill cannot be reversed
in future periods.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
2. Material accounting policies (continued)
(c) Group reorganisations
IFRS does not provide guidance on accounting for group reorganisations under common control. In
accordance with the provisions of IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ the
Group has developed its own accounting policy for group reorganisations. The Group accounts for group
reorganisations using the following methodology (the ‘merger accounting method’):
– the results and cash flows of the entities acquired in a group reorganisation are reflected in the consolidated
financial statements from the beginning of the financial year in which the group reorganisation occurred;
– the comparative information is restated by including the total comprehensive income of the acquired
entities for the previous reporting period and their statement of financial position for the previous reporting
date, adjusted as necessary to achieve uniformity of accounting policies;
– adjustments are made to eliminate transactions and balances between the Group and the acquired entities;
– the difference, if any, between the consideration transferred and the nominal value of the shares received in
exchange is reflected as a movement in other reserves in the consolidated statement of changes in equity; and
– if required, adjustments are made to the results, cash flows, assets and liabilities of the acquired entities to
achieve uniformity with the accounting policies of the Group.
The merger accounting method is applied for all group reorganisations, provided:
– the use of the merger accounting method is not prohibited by company law or other relevant legislation; and
– ultimate control remains the same.
If these criteria are not met, the acquisition method is applied in accordance with IFRS 3 ‘Business Combinations’.
(d) Foreign currencies
Presentation currency
The Group’s consolidated financial statements are presented in euro, which is also the Company’s
functional currency.
Foreign currency transactions
Foreign currency transactions are translated into the functional currency using the spot exchange rates
at the dates of the transactions.
Foreign exchange (FX) gains and losses resulting from the settlement of such transactions, and from the
translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates,
are recognised in profit or loss.
The impact of the revaluation of investments held in foreign currencies is presented together with the fair value
movement related to these investments within investment income.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
translated at the rate prevailing at the date the fair value was determined. Translation differences on assets
and liabilities carried at fair value are reported as part of the fair value gain or loss.
Foreign operations
The results and financial position of foreign operations that have a functional currency different from the
presentation currency are translated into the presentation currency of the Group as follows:
– assets and liabilities for each consolidated statement of financial position presented are translated at the
closing rate at the date of that consolidated statement of financial position;
– income and expenses in each consolidated statement of profit or loss are translated at the average
exchange rates for the period;
– all resulting exchange differences are recognised in other comprehensive income;
– on disposal of a foreign operation, exchange differences previously recognised in other comprehensive
income are reclassified to the consolidated statement of profit or loss; and
– exchange differences arising from the translation of foreign operations are taken directly to the consolidated
statement of changes in equity.
(e) Revenue
Revenue primarily comprises management fees, carried interest and performance fees, and investment
income resulting from the management of investments in Private Equity, Secondaries and Infrastructure funds
(the ‘investment funds’) and Credit vehicles. The parties to agreements of investment fund or credit vehicle
management services comprise the Group and the investors of each investment fund or credit vehicle as a
body. Accordingly, the group of investors for each investment fund or credit vehicle are identified as the
customer for accounting purposes.
Revenue is measured based on the consideration specified in the contracts and excludes amounts collected on
behalf of third parties and value added taxes.
Management fees
The Group earns management fees from its provision of various investment management services, which are
treated as a single performance obligation. Management fees are based on an agreed percentage of either
committed or invested capital, depending on the fund or vehicle and its life stage. Management fees are
recognised over time over the life of each fund or vehicle, generally 6 to 12 years, occasionally subject to an
extension, if agreed with the investors of that fund. Fees are billed in accordance with the relevant governing
documentation of the fund or vehicle and are billed monthly, quarterly or semi-annually in advance, with the
exception of management fees related to certain credit vehicles which are billed in arrears.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
2. Material accounting policies (continued)
Included in management fees are fees received from CVC Capital Partners Asia IV Limited, CVC Capital
Partners Asia V Limited, CVC Capital Partners VII Limited, and CVC Capital Partners Strategic Opportunities II
Limited, which are entities not transferred to the Group from the SIF as part of the Pre-IPO Reorganisation
(the ‘Retained GPs’). Pursuant to an agreement entered into prior to IPO (the ‘Retained GPs Agreement’)
between the Company, the Retained GPs and CVC Management Holdings II Limited, the Retained GPs
will pay a fee equal to their annual cumulative net profits, in consideration for the Group providing certain
support services to each of the Retained GPs, assume any liabilities in respect of the Retained GPs and will
grant a licence to each of the Retained GPs for the use of the Group’s brand. The fee from the Retained GPs
Agreement has been recognised within management fees. Subsequent to the IPO, CVC Capital Partners VII
Limited and CVC Capital Partners Strategic Opportunities II Limited were acquired by the Group and are no
longer considered Retained GPs from the date of acquisition. Refer to note 5 for further details.
Also included in management fees are fees earned from the Group acting as an underwriter or placement
agent in offerings or placements of debt and/or equity financing. When the Group underwrites credit facilities
and securities offerings on a firm commitment basis the Group commits to buy and sell a loan participation or
securities and generates revenue by purchasing the loan participation/securities for a fee. When the Group
acts on a best efforts basis it generates revenue for placing loan participations/securities with capital
markets investors.
Carried interest and performance fees
Investment funds:
The Group receives a share of fund profits as variable consideration dependent on the performance of the
relevant fund and the fund’s underlying investments (‘carried interest’). The entitlement to receive carried
interest is determined with reference to the underlying agreements with each fund, with the amount
determined by the level of realised profits exceeding an agreed threshold (the ‘hurdle’) over the lifetime of
each fund. Carried interest revenue is recognised when the performance obligations are expected to be met.
Recognition of carried interest revenue is assessed based on a three-step model:
– Hurdle assessment: the total hurdle is determined with reference to the sum of total accumulated
drawdowns paid by the Limited Partners (LPs) and total returns attributable to the LPs (the ‘preferred return’)
as of the reporting date.
– Total discounted value assessment: the fair value of unrealised investments is determined as of the reporting
date. In the calculation of carried interest to be recognised as revenue, the unrealised fair value will be
adjusted, in accordance with established precautionary principles, to the extent that carried interest
revenue should only be recognised once it is highly probable that the revenue would not result in a significant
reversal of cumulative revenue in future accounting periods. The fund’s other total proceeds from realised
investments and other realised movements as of the reporting date are then added to the equation, to arrive
at the total discounted value.
– Carried interest recognition assessment: if the total discounted value exceeds the total hurdle, carried
interest revenue is recognised.
The carried interest receivable represents a contract asset under IFRS 15 ‘Revenue from Contracts with
Customers’. Amounts are typically presented as non-current assets unless they are expected to be received
within the next 12 months. The Group applies the simplified approach for measuring impairment of the
contract asset as permitted by IFRS 9.
The carried interest provision represents carry received in cash that does not yet meet the criteria to be
recognised as revenue. Depending on the future performance of each fund, this amount may be recognised
as revenue by the Group or returned to the carried interest sharing (CIS) partnership for onward distribution to
other carry recipients. The amount reflects the full carried interest received from funds less any amounts offset
against the carried interest receivable. The timing and nature of the release of the carried interest received is
uncertain at year end.
Credit vehicles:
Performance-related management fees (performance fees) are recognised only to the extent it is assessed to
be highly probable that there will not be a significant reversal of revenue in future accounting periods. Subject
to this, they are recognised over a period of time and generally towards the end of the vehicle’s life or upon an
early liquidation.
For vehicles with a performance fee component, the estimate of revenue from performance fees is made
with reference to specific vehicle performance requirements such as a preferred return or performance hurdle.
A constraint is applied to the estimate to reflect uncertainty of future vehicle performance. Performance fees
will only crystallise and subsequently be received in cash at maturity if a vehicle meets the relevant
performance return conditions, unless other criteria take precedent.
Investment income
Investment income consists primarily of changes in fair value of the Group’s investments in investment funds,
and credit vehicles. Further details are set out within note 27. Details of the valuation of such investments is
explained further within note 3.
Other operating income
Other operating income is recognised in relation to income from transactions other than management fees,
carried interest and performance fees, or investment income.
(f) Placement fees
The Group incurs placement fees which are costs paid to third parties for raising capital in certain investment
funds and credit vehicles. These services and the associated expenditure result in management fees that are
contracted to be received over the life of the vehicle. The placement fees are incremental costs to the contract
with clients and hence are capitalised and amortised over the period relevant to the specific vehicle.
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CVC Capital Partners plc Annual Report 2024
2. Material accounting policies (continued)
(g) Advisory fee expense
Advisory fee expense comprises an advisory fee paid to CVC Capital Partners Advisory Group Holding
Foundation for the provision of advice on investment opportunities. These fees are eliminated upon
consolidation following the acquisition of CVC Capital Partners Advisory Group Holding Foundation
on 1 January 2024. Refer to note 5 for further details.
(h) Personnel benefits
Short-term employee benefits
Short-term employee benefits, which include employee salaries and bonuses, are expensed as the related
service is provided. A liability is recognised for the amount expected to be paid if the Group has a present or
constructive obligation to pay as a result of past service provided by the employee and the obligation can be
estimated reliably. A liability is recognised for holiday balances at each period end if an employee’s entitlement
is not used in full.
Long-term employee benefits
Long-term employee benefits, which are those that are not expected to be settled wholly before 12 months
after the period end in which the employee renders the service that gives rise to the benefit, include certain
long-term bonuses. An expense is recognised over the period in which the related service is provided. A liability
is recognised for the present value of the future amount expected to be paid if the Group has a present or
constructive obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
Defined contribution pensions
Amounts payable in respect of employers’ contributions to the Group’s defined contribution pension scheme
are recognised as employee expenses as incurred. The assets of the scheme are held separately from those of
the Group in an independently administered fund.
Share-based payments
Employees (including senior executives) of the Group receive remuneration in the form of share-based payments,
whereby employees render services in exchange for equity instruments (equity-settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made
using an appropriate valuation model. Refer to note 8 for further details.
The cost is recognised in personnel expenses together with a corresponding increase in equity (other reserves),
over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting
period). The cumulative expense recognised for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the
number of equity instruments that will ultimately vest. The expense or income in the statement of profit or loss for
a period represents the movement in cumulative expense recognised as at the beginning and end of that period.
Service and non-market performance conditions are not taken into account when determining the grant date
fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best
estimate of the number of equity instruments that will ultimately vest. Market performance conditions are
reflected within the grant date fair value. Any other conditions attached to an award, but without an
associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are
reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also
service and/or performance conditions.
No expense is recognised for awards that do not ultimately vest because non-market performance and/or
service conditions have not been met. Where awards include a market or non-vesting condition, the
transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied,
provided that all other performance and/or service conditions are satisfied.
When the terms of an equity-settled award are modified, the minimum expense recognised is the grant date
fair value of the unmodified award, provided the original vesting terms of the award are met. An additional
expense, measured as at the date of modification, is recognised for any modification that increases the total
fair value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award
is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is
expensed immediately through profit or loss.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted
earnings per share.
(i) General and administrative expenses
General and administrative expenses consist primarily of expenses related to external services and exceptional
costs. Amounts are recognised in the consolidated statement of profit or loss on an accruals basis.
Exceptional expenses are expenses which, because of the nature and expected infrequency of the events
giving rise to them, the Group considers merit in separate presentation in the notes to provide a better and
more consistent indication of the Group’s underlying financial performance and a more meaningful
comparison with prior and future periods to assess trends in financial performance.
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2. Material accounting policies (continued)
(j) Expenses with respect to investment vehicles
The Group makes its general partner commitments to funds through investments in limited partnerships and
other investment vehicles. IFRS 10 ‘Consolidated Financial Statements’ requires the Group to consolidate
investments in limited partnerships and other investment vehicles which are determined to be controlled by
the Group. Operating expenses incurred by these entities are presented in the consolidated statement of profit
or loss as expenses with respect to investment vehicles. Refer to note 3 for further details on the judgements
involved in the consolidation assessment of these entities.
(k) EBITDA
Earnings before interest taxation depreciation and amortisation (EBITDA) has been presented as a subheading
in the consolidated statement of profit or loss. This is calculated as profit after income tax adjusted by
deducting from it, or adding back to it, finance income and expense, tax, depreciation and amortisation in the
consolidated financial statements. No adjustments have been made for non-recurring or other one-off items.
(l) Finance income and finance expense
Finance income comprises interest earned on cash deposited with banks, and interest on loans receivable.
Finance expense comprises interest on interest-bearing liabilities, finance expense on lease liabilities, and
interest on cash deposited with certain banks that apply negative interest rates. Recurring fees and charges
levied on committed bank facilities are charged to the consolidated statement of profit or loss as accrued.
Interest income and expense is recognised using the effective interest rate method. The calculation includes
all fees paid or received between parties to the contract that are an integral part of the effective interest rate,
transaction costs, and all other premiums and discounts.
The cost of issuing borrowings is expensed over the period of the borrowing so as to produce a constant
periodic rate of charge. The amortisation of borrowing costs are included within finance expense in the
consolidated statement of profit or loss.
(m) Taxation
Income tax charge for the period comprises current and deferred tax recognised in the reporting period.
Tax is recognised in the consolidated statement of profit or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In each case tax is recognised in other
comprehensive income or directly in equity, respectively.
Current tax
Current tax is the amount of corporation tax payable in respect of the taxable profit for the period or prior
period. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by
the period end. The Group offsets current tax assets and current tax liabilities if it has a legally enforceable right
to set off the recognised amounts, and it intends either to settle on a net basis, or to realise the asset and settle
the liability simultaneously.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
– when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
– in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint arrangements, when the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised, except:
– when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
– in respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that
the temporary differences will reverse in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are
recognised to the extent that the relevant recognition criteria are met, such as, that it has become probable
that future taxable profits will allow the deferred tax asset to be recovered.
In assessing the recoverability of deferred tax assets, the Group relies on the same forecast assumptions used
elsewhere in the consolidated financial statements and in other management reports.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
2. Material accounting policies (continued)
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right
to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the
assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred
tax liabilities or assets are expected to be settled or recovered.
Uncertain tax position
The Group operates in multiple territories across the world and is therefore subject to a range of factors that
require judgement and create estimation uncertainty. Management continue to believe that the positions
taken in all tax returns are in line with both the letter and the spirit of the law, including basing transfer pricing
policies on the ‘arm’s length’ principle as set out in the OECD guidelines. However, tax legislation is open to
interpretation and different tax authorities may take a different view and seek to attribute further profit to
activities being undertaken in their jurisdiction.
The Group recognises provisions for uncertain tax positions when the Group has a present obligation as a result
of a past event and management judge that it is probable that there will be a future outflow of economic
benefits from the Group to settle any resulting obligation. Uncertain tax positions are assessed and measured
on an issue-by-issue basis within the jurisdictions that the Group operates, either using management’s
estimate of the most likely outcome where the issues are binary, or the expected value approach where the
issues have a range of possible outcomes. Estimates take into account the specific facts and circumstances
of each potential uncertainty, including management’s historical experience of similar positions and relevant
external advice.
Where uncertainties exist, particularly those which are non-binary, such as transfer pricing issues, the ultimate
outcome may vary from the amounts provided and is dependent upon the outcome of discussions with the
relevant tax authorities or, if necessary, formal legal proceedings.
While the Group’s measurement for uncertain tax positions is subject to estimation uncertainty, management
have concluded that the assumptions are not a key source of estimation uncertainty that will have a
significant risk of causing a material adjustment to the carrying amounts of the Group’s liabilities.
Pillar Two
In December 2021, the OECD released Pillar Two model rules intended to ensure large multinational enterprises
pay a minimum level of tax in each of the jurisdictions in which they operate (the GloBE Rules). The GloBE
rules provide for a top-up tax on profits arising in a jurisdiction whenever the effective tax rate of a large
multinational enterprise, determined on a jurisdictional basis, is below a 15% minimum rate. The GloBE Rules
were implemented in EU law through Council Directive (EU) 2022/2523 as of 15 December 2022 (the Pillar Two
Directive), under which most EU member states implemented the Pillar Two Directive in their domestic law
effective after 31 December 2023. In addition, other jurisdictions in which the Group operates have either
already enacted the GloBE Rules in their domestic law (such as the United Kingdom) or will have the GloBE
Rules in domestic law effective for fiscal years beginning on or after 1 January 2025 (such as Jersey).
The GloBE Rules, as they are implemented in the domestic laws of certain of the jurisdictions in which the
Group operates, apply to the Group. Refer to note 12 for further information.
Given the uncertainty on whether the Pillar Two rules will lead to temporary differences that could create or
change deferred taxes, as well as the uncertainty related to the tax rate to use for purposes of deferred taxes
related to Pillar Two, the IASB issued amendments to IAS 12 ‘Income Taxes’ that introduced a mandatory
temporary exception to the requirements of IAS 12. Under this exception, a company does not recognise or
disclose information about deferred tax assets and liabilities related to the Pillar Two model rules. The Group
has applied this mandatory temporary exception.
(n) Provisions
Provisions include the Group’s carried interest provision which represents carried interest received in cash that
does not yet meet the criteria to be recognised as revenue, a share appreciation rights provision (SAR provision)
related to the acquisition of CVC DIF (formerly DIF Capital Partners), and provisions for dilapidations related to
property leases. These are measured at the present value of the expenditures expected to be required to settle
the obligation using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the obligation. The increase in the provision due to passage of time is
recognised as an interest expense.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
2. Material accounting policies (continued)
(o) Property and equipment
Property and equipment is stated at cost less accumulated depreciation and any provision for impairment.
Depreciation is provided on a straight-line basis over the expected useful economic lives of the assets.
Residual values are reviewed at least annually. Estimated useful lives by major class of assets are as follows:
Asset class
Depreciation rate
Leasehold improvements
Over the shorter of their useful economic life or the lease term
Equipment
3 to 5 years
Fixtures and fittings
3 to 7 years
Right-of-use assets
Over the lease term
Property and equipment is subject to review for impairment if triggering events or circumstances indicate that
this is necessary. If an indication of impairment exists, the recoverable amount of the assets is estimated and
any impairment loss is charged to the consolidated statement of profit or loss as it arises.
(p) Intangible assets
Intangible assets that are acquired by the Group include customer-related intangible assets, brands, and
computer software and are recognised initially at their estimated fair value at the acquisition date (which is
regarded as their historical cost). Subsequent to initial recognition, intangible assets are recorded at historical
cost less accumulated amortisation and any impairment losses.
The useful economic lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised on a straight-line basis over the useful economic lives and
assessed for impairment whenever there are any indications that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed
at least annually. The amortisation expense on intangible assets with finite lives is recognised in the
consolidated statement of profit or loss, within depreciation and amortisation.
Estimated useful economic lives by major class of assets are as follows:
Asset class
Amortisation rate
Customer-related intangible assets
5 to 12 years
Brands
5 years
Computer software
3 to 5 years
(q) Financial instruments
Financial assets
The Group’s financial assets consist of financial assets at fair value through profit or loss, certain trade and
other receivables, and cash and cash equivalents.
Recognition
A financial asset is recognised when the Group becomes party to the contractual provisions of the instrument.
Classification and measurement
A financial asset is initially classified into one of three measurement categories. The classification depends
on how the asset is managed (business model) and the characteristics of the asset’s contractual cash flows.
The measurement categories for financial assets are as follows:
– fair value through profit or loss;
– fair value through other comprehensive income; and
– amortised cost.
Financial assets must be measured through profit or loss unless they are measured at amortised cost or
through other comprehensive income. Financial assets at fair value through profit or loss are classified
as current assets if they are expected to be settled in the next 12 months, otherwise they are classified
as non-current.
Financial assets are measured at amortised cost only if both of the following criteria are met:
– the asset is held within a business model whose objective is to collect the contractual cash flows; and
– the contractual terms give rise to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
The Group’s trade and other receivables meet the above criteria and are therefore initially measured at
transaction cost and subsequently measured at amortised cost using the effective interest method less
expected credit losses (ECL).
The Group’s financial assets at fair value through profit or loss are measured at fair value through profit or loss.
Derecognition
A financial asset is derecognised when the contractual rights to the cash flows from the asset expire, or when
the Group transfers the rights to receive the contractual cash flows in a transaction in which substantially all
the risks and rewards of ownership of the financial asset are transferred.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
2. Material accounting policies (continued)
Impairment
ECL are calculated on financial assets measured at amortised cost and are recognised within the consolidated
statement of profit or loss account. For trade and other receivables, the Group applies the simplified approach
and the practical expedient permitted by IFRS 9 to apply a provision matrix that is based on its historic default
rates over the expected life of the receivables.
The Group may consider a financial asset to be in default when internal or external information indicates that
the Group is unlikely to receive the outstanding contractual cash flows in full. A financial asset is written off
when there is no reasonable expectation of recovering the contractual cash flows.
Financial liabilities
The Group’s financial liabilities include certain trade and other payables, borrowings and the forward liability
which relates to the Group’s obligation to acquire the remaining 40% interest in CVC DIF in the future.
Recognition
A financial liability is recognised when the Group becomes party to the contractual provisions of
the instrument.
Classification and measurement
All financial liabilities are recognised initially at fair value and, in the case of borrowings and payables, net of
directly attributable transaction costs, with the exception of the Group’s forward liability which is initially
recognised at the present value of the cost of acquisition.
For the purposes of subsequent measurement, financial liabilities are classified in two categories:
– financial liabilities at fair value through profit or loss; and
– financial liabilities at amortised cost.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include those which have been designated upon initial
recognition as at fair value through profit or loss. Financial liabilities are designated by management upon
initial recognition to be measured at fair value under IFRS 9 if they meet the following criteria. Such
designation is determined on an instrument-by-instrument basis:
– the designation eliminates, or significantly reduces, the inconsistent treatment that would otherwise arise
from measuring the assets or liabilities or recognising gains or losses on them on a different basis; or
– the liabilities are part of a group of financial liabilities, which are managed and their performance evaluated
on a fair value basis, in accordance with a documented risk management or investment strategy, and
information about the group of financial liabilities is provided internally on that basis to the entity’s key
management personnel; or
– the financial liabilities contain one or more embedded derivatives, unless they do not significantly modify
the cash flows that would otherwise be required by the contract, or it is clear with little or no analysis when
a similar instrument is first considered that separation of the embedded derivative(s) is prohibited.
The Group has designated certain borrowings to be measured at fair value through profit or loss.
Financial liabilities at amortised cost
After initial recognition financial liabilities at amortised cost are subsequently measured at amortised cost
using the effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised as well as through the effective interest rate amortisation process. Amortised cost is calculated
by taking into account any discount or premium on acquisition and fees or costs that are an integral part of
the effective interest rate. The effective interest rate amortisation is included as finance costs in the
consolidated statement of profit or loss. Borrowings (other than those designated to be measured at fair value
through profit or loss) and trade and other payables are subsequently measured at amortised cost using the
effective interest rate method, which approximates fair value.
The Group recognises a forward liability related to its obligation to acquire the remaining interest in CVC DIF
(refer to note 22 for further information). The forward liability is measured at the present value of the expected
cost of acquisition. Changes to the valuation of the forward liability are recognised in the consolidated
statement of profit or loss.
Derecognition
The Group derecognises financial liabilities when the Group’s obligations are discharged, cancelled, or expired.
(r) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and short-term highly liquid deposits with a maturity of
three months or less, that are readily convertible to a known amount of cash and subject to an insignificant
risk of change in value, held at call with banks.
For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above.
(s) Leases
Leases for office premises
The Group assesses at contract inception whether a contract is, or contains, a lease. Such contracts represent
leases of office premises where the Group is a tenant. Right-of-use assets are recorded initially at cost and
depreciated on a straight-line basis over the shorter of the lease term or the estimated useful economic life.
Cost is defined as the lease liabilities recognised plus any initial costs and dilapidations provisions less any
incentives received. The right-of-use assets are depreciated over the lease term, which is between 0.5 to 16
years. Right-of-use assets are included within property and equipment in the consolidated statement of
financial position.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
2. Material accounting policies (continued)
The lease liability is initially measured at the net present value of future lease payments that are not paid at
the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be
readily determined, the Group’s incremental borrowing rate (IBR). Generally, the Group uses its IBR as the
discount rate as the implicit rate is not readily determinable for the rented office premises. The IBR is the rate
that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value
to the right-of-use asset in a similar economic environment within similar terms, security and conditions. The
IBR has been determined by combining the relevant reference risk-free rate for each currency, consideration of
adjustments for country-specific risks and applying a financing spread observable to comparable companies.
The lease liability is subsequently measured at amortised cost using the effective interest method.
The main components of lease payments included in the measurement of the lease liability comprise
the following:
– fixed lease payments;
– variable lease payments that are linked to an index (i.e. consumer price index); and
– lease payments in an optional renewal period if the Group is reasonably certain to exercise an
extension option.
Lease payments contain principal elements and interest. Interest is presented as part of finance costs in the
consolidated statement of profit or loss using the effective interest method. The principal and interest portions
of lease payments have been presented within financing activities in the consolidated statement of cash flows.
The carrying amount of lease liabilities is remeasured if there is a change in the future lease payments due to a
change in index or rate. Lease payments due within the next 12 months are recognised within current liabilities,
payments due after 12 months are recognised within non-current liabilities.
Short-term leases and leases of low-value assets
The Group recognises right-of-use assets and lease liabilities for leases of low-value and for short-term leases
that have a lease term of 12 months or less.
(t) Dividends
Dividends and other distributions to the equity holders of the parent and non-controlling interests are
recognised in the period in which the dividends and other distributions are approved. These amounts are
recognised in the consolidated statement of changes in equity.
(u) Unconsolidated structured entities
A structured entity is an entity that has been designed so that voting or similar rights are not the dominant
factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only
and the relevant activities are directed by means of contractual arrangements.
The Group has determined that where it holds an investment, fee receivable, commitment with an investment
vehicle or a right to carried interest, that this represents an interest in a structured entity.
The Group has further determined that when it acts within pre-determined parameters set out in various
agreements and the decision-making authority is well defined, including third-party rights in respect of the
investment manager, the Group is acting as an agent on behalf of its clients and therefore these entities are
not consolidated into the Group’s financial statements.
3. Critical judgements in the application of accounting policies and key sources of estimation
uncertainty
The preparation of the consolidated financial statements in conformity with IFRS requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the process of applying
the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the consolidated financial statements are disclosed below.
There is no material impact of climate change on estimation uncertainty.
(a) Judgements
i. Consolidation of investments in investment vehicles
A significant judgement for the Group is whether the Group controls the limited partnerships and credit vehicles,
through which it makes its general partner commitment to each fund and manages and holds investments
(‘investment vehicles’) in accordance with IFRS 10. Control is determined by the directors’ assessment of
decision-making authority, rights held by other parties, remuneration and exposure to variable returns.
When assessing whether the Group controls any investment vehicle it is necessary to determine whether the
Group acts in the capacity of principal or as agent for the third-party clients. An agent is a party primarily
engaged to act on behalf of and for the benefit of another party or parties, whereas a principal is primarily
engaged to act for its own benefit.
When making this significant judgement the directors need to assess the kick-out rights of the third-party
clients and the Group’s exposure to returns from the investment vehicle. For each of the investment vehicles
the kick-out rights and exposure to returns were reviewed. Where third-party clients have substantive rights
to remove the Group as the general partner and the exposure to returns is not significant, the Group is deemed
to be acting as an agent to the investment vehicle and therefore does not require consolidation into the Group.
If the Group has significant influence over these entities, they are recognised as associates. Where the Group
acts in the capacity of principal, by demonstrating power over the investment vehicle, having exposure to
variable returns as an investor, and having the ability to use their power to affect their variable returns, the
Group consolidates the investment vehicle.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
3. Critical judgements in the application of accounting policies and key sources of estimation
uncertainty (continued)
ii. Consolidation of carried interest entities and carried interest entitlement
As the fund manager to its private equity funds the Group receives carried interest through its participation in
certain carried interest entities. The purpose of these carried interest entities is to facilitate payments of carried
interest from the funds to those parties whom the fund investors have agreed carried interest will be paid.
Those participants are principally the Group and certain of the Group’s current and former employees and
they receive their carried interest either directly from the carried interest entities or indirectly as indirect
shareholders in Vision LP II Holdings Limited and its subsidiaries (‘LP II Holdings Group’) or Vision Management
Holdings Limited and its subsidiaries (‘Management Holdings Group’), which themselves are participants in the
carried interest entities. The LP II Holdings Group and Management Holdings Group are not subsidiaries of the
Company and are therefore not included within the consolidated financial statements of the Group.
Consolidation of carried interest entities
A significant judgement for the Group is whether the Group controls any carried interest entity in accordance
with IFRS 10 and is required to consolidate the carried interest entity into the results of the Group. Control is
determined by the directors’ assessment of decision-making authority, rights held by other parties,
remuneration and exposure to returns.
The directors have undertaken a control assessment of each carried interest entity in accordance with IFRS 10
to consider whether the carried interest entities should be consolidated into the Group. The directors have
determined that the power to control the carried interest entities lies with parties that are outside of the Group
and are not acting as agents of the Group, and that the carried interest entities should therefore not be
consolidated into the Group.
In this analysis the directors have considered both the legal form and the substance of the relationships
between the Group, the relevant fund, the carried interest entity and the carried interest participants. They
determined that the relevant arrangements were established at inception of the relevant funds, and reflected
fund investor requirements that the carried interest participants acquire a carried interest in the fund to align
their interests for the purpose of enhancing the investment performance of the fund, those carried interests
having been acquired by those participants using their own resources. The directors determined that from the
outset of each relevant fund, the Group has not had the relevant decision-making power over the relevant
activities of the carried interest entities, and that the party that does have that decision-making power is the
general partner of the carried interest entities, which itself has been determined not to be part of the Group by
applying a similar analysis.
Carried interest entitlement
Carried interest receivable is based on amounts to which the Group is entitled, legally or in substance, in
accordance with the underlying agreements with each fund. The Group has included in revenue, on the
recognition basis described in note 2, the percent of the carried interest in each fund to which the Group
is contractually entitled (30% for all funds with the exception of Fund VI which is nil, Fund VII which is 15%,
and secondaries and infrastructure funds which are nil (with the exception of SOF VI which is 30%)).
An area of significant judgement is whether the Group is entitled to, and should recognise as revenue under
IFRS 15, carried interest that is in fact paid to parties other than the Group (‘other party carried interest’). The
directors have undertaken a detailed assessment to determine whether, in substance, the Group is entitled to
this other party carried interest and should therefore recognise it as revenue. The directors have considered
and determined the following in their analysis:
1. The Group is not and has never been entitled contractually to this other party carried interest.
2. The Group has no obligation, whether contractual or in substance, to pay any amounts of carried interest,
or amounts representing this other party carried interest, to any party.
3. The other party carried interest paid by the funds to parties other than the Group is paid for identifiable
economically rational reasons, in that it is paid by the funds for things done for and services provided by
those other parties to the funds, as follows:
a. In the case of the carried interest paid to the carried interest entities whose participants are principally
employees and former employees of the Group, the recipients acquire their interests as required by
third-party fund investors to drive alignment and thereby enhance fund performance, and their
receipt of carried interest from the fund is designed to reflect their contribution to the fund in the form
of enhanced performance of the fund, reflecting the current global market framework and industry
standards required by third-party fund investors. The recipients pay using their own resources for their
interests at inception of each fund, and any carried interest received by them is considered by the
directors not to be remuneration for services provided to the Group.
b. The carried interest paid to the LP II Holdings Group and Management Holdings Group reflects the fact
that these groups possess the power to ensure that a significant commercial requirement of the third-
party fund investors is provided, namely that a majority of all carried interest ultimately flows to current
and former employees of the Group. The directors consider that the Group cannot continue investing its
existing funds, or raise new funds, unless this requirement is met, but that the Group cannot meet this
requirement on its own. The LP II Holdings Group and Management Holdings Group have contracted
with the Group for the benefit of existing and future funds to perform the service of actively managing
their shareholder population to ensure that this commercial requirement of funds and fund investors is
satisfied. The receipt of carried interest by the LP II Holdings Group and the Management Holdings
Group is reflective of performing these services for the benefit of existing and future funds.
Based on this analysis the directors consider that the Group has no entitlement, whether contractual or in
substance, to the other party carried interest and accordingly, in accordance with IFRS 15, such carried interest
is not recognised as revenue of the Group.
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CVC Capital Partners plc Annual Report 2024
3. Critical judgements in the application of accounting policies and key sources of estimation
uncertainty (continued)
iii. Recognition of carried interest
Carried interest receivable is calculated based on the underlying agreements, and assuming all fund assets are
sold at their fair values at the balance sheet date. In accordance with IFRS 15, the calculated carried interest
revenue can only be recognised to the extent to which it is highly probable that there will not be a significant
reversal of any accumulated revenue recognised in future accounting periods. A significant judgement for the
Group is whether or not carried interest revenue should be recognised.
This judgement is made on a fund-by-fund basis, based on its specific circumstance, including consideration of
the remaining duration of the fund, the current fund valuation and internal forecasts on the expected timing
and value of disposal of fund assets.
(b) Estimates
The key sources of estimation uncertainty at the reporting date, that may have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
summarised below.
i. Measurement of carried interest and performance fees
Private equity funds
Carried interest receivable is calculated based on amounts contractually due under the underlying
agreements with each fund. The calculation of carried interest assumes that all fund assets are sold at
the balance sheet date, at an amount equal to fair value less a discount (see below – the carried interest
‘constraint’). This discount or constraint is applied to help mitigate the risk of revenue reversal in accordance
with IFRS 15. If the total discounted fair value exceeds the total hurdle, carried interest revenue is recognised.
The application of the constraint means that carry will be recognised later in a fund’s life than if no constraint
were applied. The Group expects carry to be initially recognised in a particular fund after significant value has
been created across the fund’s portfolio and after a number of investments have been realised.
IFRS 15 requires that carried interest revenue should only be recognised to the extent to which it is highly
probable that there will not be a significant reversal of revenue in future accounting periods. In determining the
amount of carried interest revenue to be recognised, if any, the Group is required to make assumptions and
estimates when determining the timing and measurement of such amounts. The Group bases its assessment
on the best available information relating to the funds and the activity of the underlying assets within each
fund. This includes the remaining duration of the fund, the current fund valuation and internal forecasts on the
expected timing and value of disposal of fund assets.
For private equity funds the risk of revenue reversal is managed through the application of constraints of
between 30 to 50% that are applied to the fair values of unrealised investments. The percentage constraint
applied depends on the specific circumstances of each individual fund including portfolio diversification,
portfolio volatility, whether there has been a recent market correction (and the extent to which this
has been factored into the valuation of the fund), and the expected average remaining holding period.
The Group has assessed its historical funds and has back-tested past carry recognition through the application
of various constraints to historical fair value movements, in arriving at the approach used for the current fund
portfolios. The level of constraints applied are reassessed at each reporting date.
The methodology applied in the calculation of carried interest has been devised so as to reflect the investment
management service provided, while acknowledging the requirement to apply a constraint to reduce the risk
of revenue reversal. The investment management service covers a range of interrelated activities; sourcing and
purchase of investments, monitoring of investments, value creation throughout the holding period, and the
realisation of investments. Each element of this service is reflected in the calculation and recognition of carried
interest, in particular the recognition of carried interest over the holding period of each investment. Carried
interest recognition is a function of the upward valuation of investments within each fund portfolio. This value
creation drives unrealised gains in respect of current investments and realised gains on investments that have
been sold. Carried interest is therefore recognised throughout the investment holding period of each
investment, in a manner which is judged to provide a faithful depiction of the service provided.
Credit vehicles
Measurement and recognition of performance fees require significant estimates as to whether the credit
vehicles will meet their expected performance conditions in the future. The Group bases its assessment on the
best available information pertaining to the vehicles and the activity of the underlying assets within that
vehicle. The valuation of the underlying assets within a vehicle will be subject to fluctuations in future periods,
including but not limited to the impact of prevailing market variables and macroeconomic factors outside the
Group’s control. A constraint is applied to the potential future unrealised performance fee cash flows
receivable due to the inherent uncertainty. This is applied using a probability weighting to the cash flows which
is then discounted using a rate derived from the weighted average cost of capital and results in a constrained
revenue recognition which is assessed on a case-by-case basis.
A sensitivity analysis on the impact of reasonably possible changes in the constraint percentages on carried
interest and performance fee revenue and carried interest receivable, has been included in note 7.
ii. Valuation of financial assets at fair value through profit or loss
Financial instruments at fair value through profit or loss are stated at fair value. IFRS 13 ‘Fair Value
Measurement’ establishes a fair value hierarchy that categorises the inputs to valuation techniques used to
measure fair value into three levels. The hierarchy gives the highest priority to unadjusted quoted prices in
active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable
inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
– Level 1: Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the
Group has the ability to access at the measurement date;
– Level 2: Inputs other than quoted prices that are observable for the asset or liability either directly or
indirectly; and
– Level 3: Inputs that are unobservable .
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CVC Capital Partners plc Annual Report 2024
3. Critical judgements in the application of accounting policies and key sources of estimation
uncertainty (continued)
For assets and liabilities that are recognised in the consolidated financial statements at fair value
on a recurring basis, the Group determines whether transfers have occurred between levels in the
hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair
value measurement as a whole) at the end of each reporting period.
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that
market participants use to make valuation decisions, including assumptions about risk. Inputs may
include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other
factors. An investment’s level within the fair value hierarchy is based on the lowest level of any input that
is significant to the fair value measurement.
The Group considers observable data to be market data which is readily available, regularly distributed or
updated, reliable and verifiable, not proprietary and provided by multiple, independent sources that are
actively involved in the relevant market. The categorisation of an investment within the hierarchy is based
upon the pricing transparency of the investment and does not necessarily correspond to the Group’s perceived
risk of that investment.
Substantially all of the Group’s investments have been classified within Level 3 as they have unobservable
inputs, as they reflect estimates and assumptions over the inputs used in pricing the asset or liability,
developed based on the best information available in the circumstances as they trade infrequently or not at
all. Level 3 investments include common equity securities, preferred equity securities, corporate debts, other
privately issued securities, investments in collateralised loan obligations (CLOs), and investments in credit
vehicles. The total amount of unrealised gains and losses recognised in the consolidated statement of profit
or loss related to Level 3 investments is recognised in investment income in line with IFRS 13. Fair value is
estimated as follows:
If a quoted market price is not available for a security, or the quoted price is not deemed to be sourced from an
active market, the Group estimates the security’s fair value with reference to the International Private Equity
and Venture Capital Valuation Guidelines (IPEV).
The fair value measurement of the unquoted investments is based on a model which may contain significant
unobservable inputs. The relevant model might be an earnings-based multiple (including but not limited to
enterprise value/EBITDA, enterprise value/earnings before interest and taxes (EBIT) or price-to-earnings (P/E)),
an asset-based multiple (including but not limited to net tangible asset value (NTAV) or tangible book value
(TBV)), derived from the price of a recent investment or a specific industry valuation benchmark, depending on
management’s assessment of the most appropriate valuation methodology for that particular business. The
inputs to the applicable model may include the earnings of the underlying business, and multiples of relevant
comparable companies (which are quoted companies similar in business activity and size to the investee
company), adjusted as necessary. These adjustments are to reflect differences between the comparable
companies and the investee company and may address factors such as specific risks, earnings growth
prospects which underpin the earnings multiple, the effect of the level of financial gearing, applicable tax rate,
and/or illiquidity. The composition of the basket of comparable companies and any adjustments to multiples
as may be required are determined by the Group (in the absence of market information) and changes in
these unobservable inputs in isolation can cause significant increases or decreases in the fair value of
the investments.
Investments in CLOs are valued using a market standard third-party modelling software that considers the
cash flow structure of each transaction. This output is consolidated with discounted cash flow techniques to
achieve a present value. Key inputs to these models/techniques are discount factors, market reinvestment
spreads, forecasted default, prepayment and recovery rates.
Investments in credit vehicles are valued at the Group’s proportionate share of the net assets of the underlying
investment. The directors consider this basis to be the most appropriate proxy for a fair market valuation.
Refer to note 27(f) for further details.
iii. Valuation of forward liability
The Group acquired an initial 60% interest in CVC DIF on 1 July 2024. Under the terms of the share purchase
agreement the Group agreed to acquire 60% of CVC DIF at the initial acquisition date and the remaining 40%
interest across two later acquisition tranches. Under IFRS, the Group is required to recognise a financial liability
in respect of the obligation to acquire the remaining 40% interest. This liability will be settled by issuance of
new shares of CVC Capital Partners plc.
The value of the liability was measured at the acquisition date at the present value of the future acquisition cost
as determined in accordance with the share purchase agreement. The value of the liability has been recalculated
at 31 December 2024, and will be recalculated at each subsequent balance sheet date. Any changes in the
valuation of the forward liability are recorded through the consolidated statement of profit or loss.
The value of the liability is subject to a number of variables and was therefore subject to estimation uncertainty.
The present value of the acquisition cost as at 31 December 2024 was estimated based on estimated future
MFE of CVC DIF (the CVC DIF MFE), multiplied by the MFE Multiple, and using an appropriate discount rate
based on the WACC for CVC DIF. Inputs to the discounted cash flow model (DCF) were taken from observable
markets where possible, but where this was not feasible, a degree of estimation was required to establish
appropriate values.
The CVC DIF MFE was forecasted using the CVC DIF business plan as at 31 December 2024. A significant area
of estimation uncertainty was involved in estimating the CVC DIF MFE due to the variability in the fee-paying
assets under management of future funds, as well as the commencement date of those funds. Refer to
note 27(f) for further details.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
4. Group reorganisation
As described in note 1, the Group underwent a Pre-IPO Reorganisation of its corporate structure in the period
prior to its IPO. This included the following transactions between entities which were under common control of
the SIF during all periods presented. As a result of these transactions there were no changes to the ultimate
control of any entity and therefore the Group accounted for these business combinations and disposals using
the merger accounting method:
– On 1 January 2024, as part of the Group’s Pre-IPO Reorganisation RemainCo 1 Limited and RemainCo 2
Limited were disposed of by way of a distribution in specie to the SIF.
– On 15 April 2024, as part of the Group’s Pre-IPO Reorganisation the Group disposed of CVC Advisers
(Benelux) SA/NV to the SIF.
– On 29 April 2024, as part of the Group’s Pre-IPO Reorganisation the Group acquired MHII from the SIF.
– On 29 April 2024, as part of the Group’s Pre-IPO Reorganisation the Group acquired CVC Services Holdings
S.à r.l., Theatre Directorship Services Alpha S.à r.l., Theatre Directorship Services Beta S.à r.l., Theatre
Directorship Services Delta S.à r.l., Theatre Directorship Services Gama S.à r.l., Theatre Directorship Services
Kappa S.à r.l., Theatre Directorship Services Lambda S.à r.l., CVC Silver Nominee Limited, and CVC Credit
Partners Investments Holdings Limited in exchange for nil consideration from the SIF.
The results and cash flows of the acquired entities have been reflected in the consolidated financial statements
for the year ended 31 December 2024, from 1 January 2024, and the results and cash flows of the disposed
entities have been removed from the consolidated financial statements for the year ended 31 December 2024,
from 1 January 2024. The consolidated financial statements for the year ended 31 December 2023 have been
restated to include the results, cash flows, assets acquired and liabilities assumed of the acquired entities, and
to remove the results, cash flows, assets acquired, and liabilities of the disposed entities from 1 January 2023.
The consolidated statement of financial position as at 1 January 2023 has been restated to include the assets
acquired and liabilities assumed of the acquired entities, and to remove the assets and liabilities of the
disposed entities. In all cases, the results, cash flows, assets and liabilities of the acquired entities have been
adjusted to achieve uniformity with the accounting policies of the Group. The difference between the
consideration transferred and the nominal value of the shares received is reflected as a movement in other
reserves in the consolidated statement of changes in equity. The impact to other reserves of the above Pre-IPO
Reorganisation was €80.8m.
5. Business combinations
(a) Pre-IPO Reorganisation related acquisitions
As part of the Pre-IPO Reorganisation the Group acquired CVC Capital Partners Advisory Group Holding
Foundation, CVC Credit Partners Group Holding Foundation, Private Investment Asia V GP Limited, Private
Investment Asia V Feeder GP Limited, Private Investment Europe VIII GP Limited, Private Investment Europe VII
GP Limited, Private Investment Strategic Opportunities II GP Limited, and Private Investment Growth II GP
Limited. Additionally, subsequent to the IPO the Group acquired two of the Retained GPs, CVC Capital
Partners Strategic Opportunities II Limited, and CVC Capital Partners VII Limited.
i. Acquisition of CVC Capital Partners Advisory Group Holding Foundation
On 1 January 2024, the Group became the sole beneficiary of CVC Capital Partners Advisory Group Holding
Foundation, and acquired 90.1% of CVC Capital Partners Advisory Holdings Limited and CVC Advisory
Partners India Holdings Limited, 74.15% of CVC Capital Partners Advisory Holdings II Limited and CVC Advisory
Partners India Holdings II Limited, and 71.42% of CVC Advisers Latam Representação e Consultoria Ltd,
(together the ‘Advisory Foundation’ or the ‘Advisory Group’), for nil consideration. The Group acquired the
Advisory Group, which was previously not under common control of the Group, as part of its Pre-IPO
Reorganisation. The Group has elected to measure the non-controlling interests at its proportionate share
of the net identifiable assets acquired.
The fair values of the identifiable assets and liabilities of the Advisory Group at the date of acquisition were:
Fair value of
assets and
All figures in € 000 liabilities
Assets
Property and equipment
91,125
Intangible assets excluding goodwill
6,685
Trade and other receivables
95,127
Deferred tax asset
2,596
Cash and cash equivalents
246,726
Total assets
442,259
Liabilities
Borrowings
139,187
Lease liabilities
68,786
Provisions
2,295
Trade and other payables
157,936
Deferred tax liabilities
286
Income tax payable
38,623
Total liabilities
407,113
Total identifiable net assets at fair value
35,146
Non-controlling interests
(26,578)
Goodwill arising from acquisition
117,268
Purchase consideration transferred
125,836
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
5. Business combinations (continued)
i. Acquisition of CVC Capital Partners Advisory Group Holding Foundation (continued)
The purchase consideration was calculated based on the acquisition-date fair value of the Company’s interest
in the Advisory Group, by applying the principles of IFRS 3 for business combinations achieved without the
transfer of consideration. The fair value of the Company’s interest in the Advisory Group was determined to
be €110m and was calculated using an income approach cross-checked to a cost approach, in line with the
principles of IFRS 13. The income approach was based upon the discounted cash flows earned over the
assumed period needed to replace the current workforce and other assets provided by the Advisory Group.
Consideration also includes €15.8m which represents a net liability balance which was due to the Group from
the Advisory Group as at the date of acquisition. This pre-existing balance remains in place post-acquisition
but is eliminated upon consolidation.
As part of the acquisition of the Advisory Group, the Group recognised a capital contribution of €110m which
reflects the acquisition-date fair value of the Company’s interest in the Advisory Group.
Impact on cash flows
The impact on cash flows on the date of acquisition includes cash acquired with the subsidiary of €246.7m
which is included in cash flows from investing activities. The Group underwent a Pre-IPO Reorganisation which
resulted in certain disposals which were accounted for using the merger accounting method, resulting in a
reduction of cash of €0.5m. For further details refer to note 4.
Goodwill
Goodwill arising from the acquisition represents benefits which do not qualify for recognition as intangible
assets, including assembled work force, the opportunity to attract new limited partners and the platform to
develop future business opportunities and funds. None of the goodwill recognised is expected to be deductible
for income tax purposes.
Trade and other receivables assumed
Trade and other receivables acquired comprise gross trade and other receivables amounting to €95.1m,
which approximates fair value. The full contractual amounts have been collected.
Summarised statement of comprehensive income
The summarised financial information of the Advisory Group is provided below which presents the operational
contribution of the Advisory Group and the IFRS 3 impact of the acquisition on the results of the Group since
the date of the acquisition. The Advisory Group earns advisory fee revenue from the Group for the provision of
advice on investment opportunities which is eliminated upon consolidation.
Net of
All figures in € 000
Dec-24
Intercompany
intercompany
Management and other fees
352
—
352
Other operating income
5,008
(4,964)
44
Advisory fees
428,000
(428,000)
—
Total revenue
433,360
(432,964)
396
Personnel expenses
(255,113)
(1,776)
(256,889)
General and administrative expenses
(85,696)
(2,331)
(88,027)
Foreign exchange gains
2,637
—
2,637
EBITDA
95,188
(437,071)
(341,883)
Depreciation and amortisation
(28,436)
—
(28,436)
Total operating profit/(loss)
66,752
(437,071)
(370,319)
Finance income
5,123
—
5,123
Finance expense
(6,036)
—
(6,036)
Profit/(loss) before income tax
65,839
(437,071)
(371,232)
Income tax charge
(10,519)
—
(10,519)
Profit/(loss) after income tax
55,320
(437,071)
(381,751)
Attributable to:
Equity holders of the parent
51,760
(437,071)
(385,311)
Non-controlling interests
3,560
—
3,560
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
5. Business combinations (continued)
ii. Acquisition of CVC Credit Partners Group Holding Foundation
On 15 April 2024, the Group became the sole beneficiary of CVC Credit Partners Group Holding Foundation
(the ‘Credit Foundation’ or ‘CVC Credit’). The Group acquired CVC Credit, which was previously not under
common control of the Group, as part of its Pre-IPO Reorganisation. A consolidated subsidiary of CVC Credit,
CVC Credit Partners Investment Holdings II Limited, has issued preference shares which entitle the non-
controlling interests to 100% of its net assets and profits. The Group has elected to measure the non-controlling
interests at their proportionate share of the net identifiable assets acquired.
The fair values of the identifiable assets and liabilities of CVC Credit at the date of acquisition were:
Fair value of
assets and
All figures in € 000 liabilities
Assets
Property and equipment 9,482
Intangible assets excluding goodwill 206,280
Performance fees receivables 6,558
Financial assets at fair value through profit or loss 191,553
Trade and other receivables 60,025
Deferred tax asset 16,550
Cash and cash equivalents 63,394
Total assets 553,842
Liabilities
Borrowings 108,248
Lease liabilities 5,817
Trade and other payables 36,004
Deferred tax liabilities 52,420
Income tax payable 5,189
Total liabilities 207,678
Total identifiable net assets at fair value 346,164
Non-controlling interests (65,885)
Goodwill arising from acquisition 108,718
Purchase consideration transferred 388,997
The purchase consideration was calculated based on the acquisition-date fair value of the Company’s interest
in CVC Credit, by applying the principles of IFRS 3 for business combinations achieved without the transfer of
consideration. The fair value of the Company’s interest in CVC Credit was determined to be €392.4m and was
based on the value of a loan and contingent consideration due from CVC Credit to the Company’s historic
parent Vision Portfolio Holdings Limited, which was forgiven at the time of the acquisition. Consideration
is reduced by €3.4m which represents a net liability balance which was due from the Group to CVC Credit
as at the date of acquisition. This pre-existing balance remains in place post-acquisition but is eliminated
upon consolidation.
As mentioned above, a consolidated subsidiary of CVC Credit, CVC Credit Partners Investment Holdings II
Limited, has issued preference shares which entitle 100% of its net assets and profits to non-controlling
interests. MHII, a subsidiary of the Group, owns a portion of these preference shares. MHII records these
preference shares as financial assets at fair value through profit or loss in the consolidated statement of
financial position. At the date of acquisition the fair value of these preference shares was €37.7m. These
balances are eliminated upon consolidation following the acquisition of CVC Credit.
Impact on cash flows
The impact on cash flows on the date of acquisition includes cash acquired with the subsidiary of €63.4m
which is included in cash flows from investing activities.
Goodwill
Goodwill arising from the acquisitions represents benefits which do not qualify for recognition as intangible
assets, including assembled work force, the opportunity to attract clients and the platform to develop future
business opportunities and funds. None of the goodwill recognised is expected to be deductible for income
tax purposes.
Trade and other receivables assumed
Trade and other receivables acquired comprise gross trade and other receivables amounting to €60m,
which approximates fair value. The full contractual amounts have been collected.
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CVC Capital Partners plc Annual Report 2024
5. Business combinations (continued)
ii. Acquisition of CVC Credit Partners Group Holding Foundation (continued)
Summarised statement of comprehensive income
The summarised financial information of CVC Credit is provided below which presents the operational
contribution of CVC Credit and the IFRS 3 impact of the acquisition on the results of the Group since the date
of the acquisition.
Amortisation of
Eight months acquired
All figures in € 000 ended Dec-24
intangible assets
Total
Management fees
135,644
—
135,644
Performance fees
6,260
—
6,260
Investment income
8,041
—
8,041
Other operating income
—
—
—
Total revenue
149,945
—
149,945
Personnel expenses
(65,420)
—
(65,420)
General and administrative expenses
(13,657)
—
(13,657)
Foreign exchange gains
2,691
—
2,691
Expenses with respect to investment vehicles
(610)
—
(610)
EBITDA
72,949
—
72,949
Depreciation and amortisation expense
(1,835)
(26,957)
(28,792)
Total operating profit/(loss)
71,114
(26,957)
44,157
Finance income
1,452
—
1,452
Finance expense
(3,602)
—
(3,602)
Profit/(loss) before income tax
68,964
(26,957)
42,007
Income tax charge
(989)
6,737
5,748
Profit/(loss) after income tax
67,975
(20,220)
47,755
Attributable to:
Equity holders of the parent
64,518
(20,220)
44,298
Non-controlling interests
3,457
—
3,457
iii. Other Pre-IPO Reorganisation related acquisitions
As part of the Pre-IPO Reorganisation the Group acquired the following entities for nil consideration:
Entities acquired
Acquisition date
Private Investment Asia V GP Limited
29 April 2024
Private Investment Asia V Feeder GP Limited
29 April 2024
Private Investment Europe VIII GP Limited
29 April 2024
Private Investment Europe VII GP Limited
29 April 2024
Private Investment Strategic Opportunities II GP Limited
29 April 2024
Private Investment Growth II GP Limited
29 April 2024
CVC Capital Partners Strategic Opportunities II Limited
30 April 2024
CVC Capital Partners VII Limited
6 June 2024
The fair values of the identifiable assets and liabilities of the acquired entities at the date of acquisition are
considered to be individually immaterial and therefore have been aggregated in the next table. The purchase
consideration transferred has been reduced by €15.4m to reflect the settlement, at fair value, of pre-existing
loans receivable and trade and other payables balances which were in existence between the Group and the
acquired entities as at the acquisition date.
Fair value of
assets and
Fair value of liabilities – net
assets and Pre-existing of pre-existing
All figures in € 000 liabilities balances balances
Assets
Trade and other receivables
85,043
(84,151)
892
Cash and cash equivalents
2,256
—
2,256
Total assets
87,299
(84,151)
3,148
Liabilities
Trade and other payables
(83,469)
68,799
(14,670)
Total liabilities
(83,469)
68,799
(14,670)
Total identifiable net assets (liabilities) at fair value
3,830
(15,352)
(11,522)
Non-controlling interests
—
—
—
Goodwill arising from acquisition
—
—
—
Purchase consideration transferred
3,830
(15,352)
(11,522)
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CVC Capital Partners plc Annual Report 2024
5. Business combinations (continued)
iii. Other Pre-IPO Reorganisation related acquisitions (continued)
The purchase consideration was calculated based on the acquisition-date fair value of the Company’s interest
in the acquired entities, which the Group concluded was equal to their net asset value. As a result there is no
goodwill recognised.
As part of the above acquisitions the Group recognised a capital contribution of €3.8m which reflects
the acquisition-date fair value of the Company’s interest in these entities before the settlement of
pre-existing balances.
As a result of the acquisitions of CVC Capital Partners Strategic Opportunities II Limited and CVC Capital
Partners VII Limited the Group is considered to control CVC Investment Strategic Opportunities II L.P. and CVC
Capital Partners Investment Europe VII L.P. as at 30 April 2024 and 6 June 2024, respectively. Prior to the
acquisitions, the Group recognised investments in CVC Investment Strategic Opportunities II L.P. and CVC
Capital Partners Investment Europe VII L.P. as financial assets at fair value through profit or loss. Subsequent
to the acquisition these entities are consolidated on a line-by-line basis by the Group, with the Group
recognising 30% and 69% non-controlling interests respectively.
The purchase consideration for CVC Investment Strategic Opportunities II L.P. and CVC Capital Partners
Investment Europe VII L.P. was calculated based on the acquisition-date fair value of the Group’s interest in
the entities, which the Group concluded was equal to their net asset value. As a result there is no goodwill
recognised. The Group has elected to measure the non-controlling interests at their proportionate share of the
net identifiable assets acquired. Goodwill on acquisition is calculated as follows:
CVC Capital
CVC Investment Partners
Strategic Investment
All figures in € 000 Opportunities II L.P. Europe VII L.P.
Consideration
—
—
Fair value of previously held holding
113,211
173,935
Purchase consideration transferred
113,211
173,935
Fair value of identifiable net assets
161,400
558,962
Less, non-controlling interests as proportionate share of acquired net
assets
(48,189)
(385,027)
Total identifiable net assets at fair value attributable to the Group
113,211
173,935
Goodwill arising from acquisition
—
—
Fair value net identifiable assets consists of:
CVC Capital
CVC Investment Partners
Strategic Investment
All figures in € 000 Opportunities II L.P. Europe VII L.P.
Financial assets at fair value through profit or loss
174,281
560,023
Trade and other receivables
2
4
Cash and cash equivalents
662
642
Borrowings
(13,426)
(1,619)
Trade and other payables
(119)
(88)
Fair value of identifiable net assets
161,400
558,962
Impact on cash flows
The impact on cash flows on the date of acquisition includes cash acquired with the subsidiaries of €3.6m
which is included in cash flows from investing activities.
Trade and other receivables assumed
Trade and other receivables acquired as part of the above acquisitions comprise gross trade and other
receivables, which approximates fair value. The full contractual amounts have been collected.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
5. Business combinations (continued)
iii. Other Pre-IPO Reorganisation related acquisitions (continued)
Summarised statement of comprehensive income
The summarised financial information of the acquired entities since the date of the acquisition is provided below:
Other
CVC Investment CVC Capital individually
Strategic Partners immaterial
Opportunities II Investment business
All figures in € 000 L.P. Europe VII L.P. combinations
Management and incentive fees
—
—
94,075
Investment income
20,234
68,875
—
Other operating income
—
—
17
Total revenue
20,234
68,875
94,092
Personnel expenses
—
—
—
General and administrative expenses
—
—
(273)
Expenses with respect to investment vehicles
(259)
(165)
—
Total operating profit
19,975
68,710
93,819
Finance income
13
70
76
Finance expense
(553)
(437)
(2)
Profit before and after income tax
19,435
68,343
93,893
Attributable to:
Equity holders of the parent
13,625
21,267
93,893
Non-controlling interests
5,810
47,076
—
Acquisition-related expenses
Acquisition-related expenses for the above Pre-IPO Reorganisation acquisitions were included in the total
€35.9m of general and administrative expenses incurred by the Group related to the IPO.
(b) Acquisition of additional interest in CVC Secondaries
Under the terms of the share purchase agreement with respect to CVC Secondary Partners (‘CVC Secondaries’,
formerly Glendower Capital), the Group agreed to acquire 60% of CVC Secondaries at the initial acquisition
(completed 11 January 2022) and the remaining 40% interest across two later acquisition tranches. The Group
is required to record a financial liability in respect of the obligation to acquire the remaining 40% interest.
The value of this forward liability was measured at the acquisition date at the present value of the future
acquisition cost as determined in accordance with the share purchase agreement. This value has been
recalculated at each subsequent balance sheet date and any changes in value have been recorded through
profit or loss.
The forward liability was valued at €314.3m at the acquisition date and was recorded as a reduction in other
reserves. This value has increased over time in line with the increase in the share price of CVC Capital Partners
plc. This forward liability was primarily settled by the issue of shares of CVC Capital Partners plc on 10 May
2024 and 2 July.
An adjustment of €14.4m has also been made to increase deferred tax liabilities and €12.7m to increase
the deferred tax assets, which relates to further step-ups in the basis for US tax purposes of the assets within
a CVC Secondaries partnership associated with the two acquisition tranches that occurred in the year ended
31 December 2024, with the net €1.7m recognised in retained earnings, to reflect the additional taxable
temporary difference arising as part of the acquisition.
All figures in € 000 Forward liability
Initial acquisition – as at 11 January 2022
314,299
Fair value movement – for the year ended 31 December 2022
192,895
Value as at 31 December 2022
507,194
Fair value movement – for the year ended 31 December 2023
84,825
Value as at 31 December 2023
592,019
Fair value movement – for the year ended 31 December 2024
213,007
Settlement by issuance of shares and cash
1
 (805,026)
Value as at 31 December 2024
—
1. Settlement included €796.2m of shares and €8.8m of cash.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
5. Business combinations (continued)
(c) Acquisition of CVC DIF
On 1 July 2024, the Group acquired 60% of CVC DIF. The Group acquired CVC DIF because its infrastructure
platform is a complementary strategy alongside the Group’s existing Private Equity, Credit, and Secondaries
platforms. The Group has elected to measure the non-controlling interests at their proportionate share of the
net identifiable assets acquired.
The fair values of the identifiable assets and liabilities of CVC DIF at the date of acquisition were:
Fair value
of assets and
All figures in € 000 liabilities
Assets
Property and equipment
14,570
Intangible assets excluding goodwill
688,140
Trade and other receivables
20,890
Cash and cash equivalents
55,283
Total assets
778,883
Liabilities
Lease liabilities
11,119
Provisions
4,948
Trade and other payables
34,221
Deferred tax liabilities
177,575
Income tax payable
9,543
Total liabilities
237,406
Total identifiable net assets at fair value
541,477
Non-controlling interests
(216,591)
Goodwill arising from acquisition
265,199
Purchase consideration transferred
590,085
Fair value of purchase
consideration on date
All figures in € 000
of acquisition
Cash
386,839
Share issuance
195,901
Contribution
7,345
Total consideration
590,085
Analysis of cash flows on acquisition:
Cash outflow net of cash acquired
(331,556)
Net cash flow on acquisition
(331,556)
As part of the acquisition of 60% of CVC DIF, the Group issued 11,402,873 shares valued at €195.9m and made
a cash payment of €386.8m to the sellers. Additionally, the SIF, contributed €7.3m, resulting in the Group
recognising a contribution through retained earnings. The fair value of the shares is calculated with reference
to CVC Capital Partners plc’s share price on the date of acquisition.
At the same time as the acquisition of 60% of CVC DIF, the Group acquired preference shares from the CVC
DIF selling shareholders. The preference shares are recognised as financial assets held at amortised cost and
recorded within trade and other receivables. The fair value of the preference shares on initial recognition was
€25.7m of which €16.6m was paid in cash, €8.8m in shares of the Group and €0.3m was contributed by the
SIF, and recognised by the Group as a contribution. Refer to note 18 for further details.
As a result of both the acquisition of 60% of CVC DIF and the purchase of the preference shares the Group
paid a total of €403.4m in cash and issued 11,912,396 shares valued at €204.7m at the time of issuance.
Impact on cash flows
The impact on cash flows on the date of acquisition was an outflow of €331.6m, including cash acquired with
the subsidiary of €55.3m which is included in cash flows from investing activities.
Goodwill
Goodwill arising from the acquisitions represents benefits which do not qualify for recognition as intangible
assets, including assembled work force, the opportunity to attract clients and the platform to develop future
business opportunities and funds. None of the goodwill recognised is expected to be deductible for income
tax purposes.
Trade and other receivables assumed
Trade and other receivables acquired comprise gross trade and other receivables amounting to €20.9m, which
approximates fair value. The full contractual amounts have been collected.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
5. Business combinations (continued)
(c) Acquisition of CVC DIF (continued)
Acquisition-related expenses
Acquisition-related expenses for the acquisition of CVC DIF were €15.5m of general and administrative expenses.
Forward liability
Included in the share purchase agreement is an obligation for the Group to purchase the remaining 40%
interests in CVC DIF. In accordance with the share purchase agreement, 20% of the outstanding shares will be
purchased in January 2027, and the final 20% will be purchased in January 2029. The consideration for these
subsequent acquisitions will be the issue of shares in CVC Capital Partners Plc equivalent to the fair value of
the interest in CVC DIF acquired by the Group from the sellers.
The Group recognised a liability of €537.3m at initial acquisition for its obligation to acquire the remaining 40%
interest in CVC DIF. The liability was measured at the acquisition date at the present value of the redemption
amount as determined in the share purchase agreement and is subsequently remeasured through profit or
loss. The obligation will be settled by the issuance of shares of the Group. As a result, this has been recorded in
other reserves within equity. Refer to notes 22 and 27 for further details.
All figures in € 000
Forward liability
Initial acquisition – as at 1 July 2024
537,280
Fair value movement – for the year ended 31 December 2024
250,298
Value as at 31 December 2024
787,578
`
Summarised statement of comprehensive income
The summarised financial information of CVC DIF is provided below which presents the operational
contribution of CVC DIF and the IFRS 3 impact of the acquisition on the results of the Group since the date
of the acquisition.
Amortisation
Six months of acquired
All figures in € 000 ended Dec-24
intangible assets
Total
Management fees
89,561
—
89,561
Other operating income
(16)
—
(16)
Total revenue
89,545
—
89,545
Personnel expenses
(41,048)
—
(41,048)
General and administrative expenses
(10,916)
—
(10,916)
Foreign exchange losses
(340)
—
(340)
EBITDA
37,241
—
37,241
Depreciation and amortisation expense
(2,192)
(39,309)
(41,501)
Total operating profit/(loss)
35,049
(39,309)
(4,260)
Finance income
713
—
713
Finance expense
(839)
—
(839)
Profit/(loss) before income tax
34,923
(39,309)
(4,386)
Income tax charge
(11,112)
10,201
(911)
Profit/(loss) after income tax
23,811
(29,108)
(5,297)
Attributable to:
Equity holders of the parent
14,286
(17,465)
(3,179)
Non-controlling interests
9,525
(11,643)
(2,118)
Impact on total revenue and profit after income tax
If the Pre-IPO Reorganisation related acquisitions of the Advisory Group, CVC Credit, CVC Investment
Strategic Opportunities II L.P., CVC Capital Partners Investment Europe VII L.P, and the other individually
immaterial entities, as well as the acquisition of CVC DIF had taken place at 1 January 2024, the total revenue
of the combined group would have increased by €161.5m and the profit after income tax of the combined
group would have increased by €22.8m.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
6. Operating segments
The Board of directors of the SIF (the SIF Board) acted as the chief operating decision-maker (CODM) of the
Group until the Pre-IPO Reorganisation in April 2024. For this period the Group represented one reportable
segment, ‘Private Equity’, based on how the SIF Board reviewed and evaluated the operation and performance
of the business.
Following the Pre-IPO Reorganisation, management identified the directors of the Company as the new
CODM of the Group. The directors monitor the operating results of the following segments separately for the
purpose of making decisions about resource allocation and performance assessment:
– Private Equity, which consists of four private equity strategies: Europe / Americas, Asia, Strategic
Opportunities, and Growth;
– Credit, which invests in companies through dedicated vehicles and investment solutions for both Performing
Credit and Private Credit;
– Secondaries, which focuses on secondary markets globally;
– Infrastructure, which focuses on mid-market infrastructure investments; and
– Central, which reflects all non-investment people costs and all non-people costs of the business, including all
costs related to business operations.
As a result, management have identified the above five segments as separate operating segments.
Segmental information for the year ended 31 December 2024 has been restated to reflect the current
segmental reporting. The credit and infrastructure segments were not applicable for the year ended 2023 as
CVC Credit and CVC DIF were only acquired during the year ended 31 December 2024. Additionally, the below
segmental information does not reflect any pro forma financial information and therefore includes CVC Credit
and CVC DIF only from the date of their respective acquisitions.
Dec-24
Private Total
All figures in € 000
Equity
Secondaries
Credit
Infrastructure
Central
Group
Management fees
861,035
94,994
135,644
89,561
—
1,181,234
People costs
1
(102,178)
(20,184)
(34,342)
(20,786)
(163,221)
(340,711)
Non-people costs
2
—
—
—
—
(132,973)
(132,973)
Gross contribution / Adjusted MFE
758,857
74,810
101,302
68,775
(296,194)
707,550
Carried interest and performance fees
161,414
Investment income
107,345
Performance-related costs
(85,408)
Adjusted PRE
183,351
Other operating income
3,733
Adjusted EBITDA
894,634
Depreciation and amortisation
(36,607)
Net finance expense
(30,574)
Tax
(46,774)
Adjusted profit after income tax
780,679
Note: Refer to pages 207 to 208 for footnotes.
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CVC Capital Partners plc Annual Report 2024
6. Operating segments (continued)
Dec-23
Private Total
All figures in € 000
Equity
Secondaries
Central
Group
Management fees
644,507
98,861
—
743,368
People costs
1
—
(16,562)
(42,655)
(59,217)
Non-people costs
2
—
—
(40,548)
(40,548)
Advisory fee expense
3
(115,713)
—
(220,100)
(335,813)
Gross contribution / Adjusted MFE
528,794
82,299
(303,303)
307,790
Carried interest and performance fees
169,351
Investment income
70,305
Performance-related costs
(64,623)
Adjusted PRE
175,033
Other operating income
2,625
Adjusted EBITDA
485,448
Depreciation and amortisation
(3,950)
Net finance expense
(17,746)
Tax
(10,974)
Adjusted profit after income tax
452,778
Adjusted EBITDA, adjusted profit after income tax, adjusted MFE and adjusted PRE are alternative
performance measures (APMs) which are not defined or recognised under IFRS, but are used by the CODM to
analyse the business and its financial performance. Reconciliations of these measures back to the nearest IFRS
measure are set out below.
All figures in € 000
Dec-24
Dec-23
EBITDA
4
473,656
358,937
Less: Investment income attributable to NCI
5
(100,184)
(11,123)
Add back: Exceptional expenses
9
53,481
56,013
Add back: Change in valuation of forward liability
10
463,305
84,825
Add back: Expenses related to recharged lease agreements
11
366
483
Add back: Expenses with respect to investment vehicles
12
4,010
440
Less: Exceptional other operating income
8
—
(4,127)
Adjusted EBITDA
894,634
485,448
All figures in € 000
Dec-24
Dec-23
Profit after income tax
4
308,116
302,714
Less: Investment income attributable to NCI
5
(100,184)
(11,123)
Add back: Exceptional expenses
9
53,481
56,013
Add back: Change in valuation of forward liability
10
463,305
84,825
Add back: Expenses with respect to investment vehicles
12
4,010
440
Add back: Amortisation of acquired intangible assets
13
88,791
22,526
Less: Deferred tax related to acquired intangible assets
13
(18,404)
(1,205)
Add back: Net finance expense attributable to NCI
14
9,585
2,715
Less: Exceptional tax
15
(28,021)
—
Less: Exceptional other operating income
8
—
(4,127)
Adjusted profit after income tax
780,679
452,778
Note: Refer to pages 207 to 208 for footnotes .
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CVC Capital Partners plc Annual Report 2024
6. Operating segments (continued)
All figures in € 000
Dec-24
Dec-23
Adjusted MFE
707,550
307,790
Carried interest and performance fees receivable
4
173,170
163,170
Investment income
4
207,528
81,428
Other operating income
4
3,733
6,752
Change in valuation of forward liability
4
(463,305)
(84,825)
Expenses with respect to investment vehicles
4
(4,010)
(440)
Depreciation and amortisation
4
(125,033)
(25,991)
Less: Exceptional expenses
9
(53,481)
(56,013)
Less: FX on carried interest provision
6
(11,755)
6,181
Less: Expenses related to recharged lease agreements
11
(366)
(483)
Less: Performance-related costs
7
(85,408)
(64,623)
Operating profit
4
348,623
332,946
All figures in € 000
Dec-24
Dec-23
Adjusted PRE
183,351
175,033
Management fees
4
1,181,234
743,368
Other operating income
4
3,733
6,752
Advisory fee expense
4
—
(400,437)
Personnel expenses
4
(427,668)
(59,902)
General and administrative expenses
4
(193,838)
(95,883)
Change in valuation of forward liability
4
(463,305)
(84,825)
Foreign exchange (losses)/gains
(3,188)
5,706
Expenses with respect to investment vehicles
4
(4,010)
(440)
Depreciation and amortisation
4
(125,033)
(25,991)
Add back: Investment income attributable to NCI
5
100,184
11,123
Add back: FX on carried interest provision
6
11,755
(6,181)
Add back: Performance-related costs
7
85,408
64,623
Operating profit
4
348,623
332,946
Notes
1. People costs for the year ended 31 December 2024 reflect the Group’s personnel expenses, adjusted for
performance-related costs of €-85.4m (Dec-23: €-64.6m), exceptional expenses of €-8.7m (Dec-23:
€-0.7m), and the CVC Advisers (Benelux) SA/NV reclass of €7.1m (Dec-23: nil).
2. Non-people costs for the year ended 31 December 2024 reflect the Group’s general and administrative
expenses and foreign exchange gains and losses, adjusted for exceptional expenses of €-44.8m (Dec-23:
€-55.3m), expenses related to recharged lease agreements of €-0.4m (Dec-23: €-0.5m), and FX on carried
interest provision of €-11.8m (Dec-23: €+6.2m).
3. Advisory fee expense for the year ended 31 December 2023 reflects the Group’s advisory fee expense,
adjusted for performance-related costs of €-64.6m.
4. Statutory financial information is directly extracted from the consolidated financial statements.
5. This figure comprises investment income attributable to non-controlling interests and from investments
pledged as collateral for loans. It has been deducted from investment income to show adjusted investment
income attributable to the Group.
6. Foreign exchange movement on carried interest provision has been deducted from carried interest revenue
to show net carried interest revenue.
7. Performance-related costs relate to employee compensation that is deemed attributable to the
generation of carried interest, performance fees and investment income.
8. Exceptional other operating income for the year ended 31 December 2023 comprises reimbursements of
bonus expenses paid on behalf of others.
9. Exceptional expenses:
a. For the year ended 31 December 2024, of the total €53.5m exceptional expenses items: €44.8m were
general and administrative expenses items and €8.7m were personnel expenses items. Exceptional
expenses items comprise (i) expenses related to the listing on Euronext Amsterdam of €35.9m; (ii) legal
and professional fees related to the acquisition of CVC DIF of €7.9m; (iii) exceptional bonus awards
paid to individuals of €8.7m; and (iv) other transaction costs of €1m.
b. For the year ended 31 December 2023, of the total €56m exceptional expenses items: €55.3m were
general and administrative expenses items and €0.7m were personnel expenses items. Exceptional
expenses items comprise (i) expenses related to the planned listing on Euronext Amsterdam of €47.5m;
(ii) legal and professional fees related to the acquisition of CVC DIF of €7.6m; (iii) exceptional bonus
awards paid to individuals of €0.7m; and (iv) other transaction costs of €0.3m.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
6. Operating segments (continued)
10. The forward liability represents the value of the Group’s obligation to acquire the remaining 40% interest
in CVC Secondaries and the remaining 40% interest in CVC DIF. The remaining 40% interest in CVC
Secondaries was purchased during the year, primarily through the issue of shares in the Group. The value
of the liability increased over the period in line with the increase in the share price of CVC Capital Partners
plc up to the date of acquisition. This obligation to acquire 40% of CVC DIF is due to be settled by the issue
of shares of CVC Capital Partners plc in 2027 and 2029. The value of this liability will therefore change in
line with the increase or decrease in the share price of CVC Capital Partners plc. Over the course of the
reporting period the value of the liability has therefore increased in line with the increase in the share price
of CVC Capital Partners plc. The change in value of the forward liability does not represent part of the
Group’s operating results.
11. Certain expenses related to the recharge of lease costs have been included within general and
administrative expenses, due to the legal nature of the recharge agreement.
12. This figure comprises expenses, including tax expenses where applicable, with respect to investment
vehicles arising from the consolidation of GP commitments and credit vehicles and are being added back
to show net investment income attributable to the Group.
13. This figure comprises amortisation of CVC Secondaries, CVC Credit and CVC DIF’s acquired intangible
assets, and related deferred tax, which has been removed as it is not indicative of the Group’s operating
results.
14. This figure comprises net finance expense attributable to non-controlling interests and has been added
back to show adjusted profit after income tax net of non-controlling interests.
15. This figure comprises the Group’s uncertain tax positions and deferred tax related to minimum corporate
income tax (MCIT) rules which have been removed as these income tax amounts are not indicative of the
Group’s underlying operating results.
16. Within adjusted EBITDA is an adjustment to reclass €7.1m (Dec-23: nil) of costs out of general and
administrative expenses into personnel expenses. These costs relate to advisory services provided by CVC
Advisers (Benelux) SA/NV, which is not a subsidiary of the Group. If CVC Advisers (Benelux) SA/NV were to
be consolidated, a portion of these costs would have been reflected as personnel expenses. There is no net
impact on EBITDA. Refer to note 4 for further details on CVC Advisers (Benelux) SA/NV.
7. Revenue
(a) Geographical locations
Revenue primarily comprises management fees, carried interest and investment income from the
management of, and investment in, investment funds and credit vehicles. The Group also earns other
operating income. The Group’s management fees are derived from Jersey, Luxembourg, Netherlands, the
Cayman Islands, Ireland, the United Kingdom, the United States and Denmark. The Group’s carried interest
revenues are derived from the domicile of the individual fund, which are all located in one geographical area
(Jersey). The Group’s investment income earned from direct investments in portfolio companies cannot be
meaningfully split by geographical areas as the Group’s investments are located in multiple jurisdictions.
Revenue from management fees is generated in the following geographical locations, based on the location of
the contract:
All figures in € 000 Dec-24
Dec-23
Geographical markets
Jersey
871,871
644,221
Luxembourg
145,554
73,188
Netherlands
89,561
—
Cayman Islands
31,895
22,143
Ireland
21,433
—
United Kingdom
11,241
3,816
United States
9,356
—
Denmark
323
—
Total management fees
1,181,234
743,368
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
7. Revenue (continued)
(b) Contract liabilities
Contract liabilities are deferred income related to management fees received in advance as a result of timing
differences between the generation of revenues and payment. Changes in contract liabilities related to
management fees are presented below:
All figures in € 000
Notes
Dec-24
Dec-23
Opening balance
3,113
3,755
Revenue recognised that was included in the contract
liability at the beginning of the period
(3,113)
(3,755)
Payment in advance during the period for performance
obligations not yet performed
5,570
3,113
Closing balance
25
5,570
3,113
(c) Carried interest and performance fees
The amount of carried interest recognised as revenue and the carrying value of the related carried interest
is sensitive to the constraint applied to each fund. The figures below show the impact that an increase or
decrease in the constraint would have on carried interest income recognised for the year ended 31 December
2024. In certain limited circumstances carried interest received may be subject to clawback provisions if the
performance of the fund deteriorates materially following the receipt of carried interest. Not included in the
below sensitivity is €6.3m related to performance fees.
Dec-24
Effect on income
Weighted Effect on income at 110% Income at 90%
average at constraint of constraint of constraint
All figures in € 000 constraint % (€ 000) (€ 000) (€ 000)
Carried interest
39%
166,910
(37,119)
37,119
8. Personnel expenses
(a) Personnel expenses
Personnel expenses, including remuneration for key management personnel (KMP), for the years ended
31 December 2024 and 31 December 2023 were as follows:
All figures in € 000
Dec-24
Dec-23
Salaries, bonuses and other short-term benefits
410,119
58,756
Post-employment benefits
14,225
1,146
Share-based payment expense
3,324
—
Total personnel expenses
427,668
59,902
Total personnel expenses for the year ended 31 December 2024 include €256.9m of expenses with respect to
the Advisory Group, which was acquired by the Group on 1 January 2024, €65.4m with respect to CVC Credit,
which was acquired by the Group on 15 April 2024, and €41m with respect to CVC DIF, which was acquired by
the Group on 1 July 2024. CVC Credit and CVC DIF’s personnel expenses for the year ended 31 December 2024
were €93m and €74.9m respectively. Refer to note 5 for further details.
The Group operates defined contribution pension schemes for its employees. Costs incurred in respect of
defined contributions are included within post-employment benefits.
Included within salaries, bonuses and other short-term benefits are exceptional expenses related to non-
recurring bonus awards of €8.7m (Dec-23: €0.7m).
(b) Share-based payments
LTIP
Under the Group’s long term incentive plan (LTIP), options were granted to senior executives of the Company
on 16 December 2024, including members of key management personnel. The options vest over the period
from 1 January 2026 to 31 December 2028, provided certain market and non-market conditions are met. Upon
vesting, the options will be settled in Company shares, with no consideration paid by the participants. Each
option equates to one Company share. The fair value of the options were estimated at the grant date using a
Monte Carlo simulation, taking into account the terms and conditions including relevant market conditions.
The Group accounts for the LTIP as an equity-settled plan in line with IFRS 2.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
8. Personnel expenses (continued)
The fair value of the awards was estimated at the grant date to be €12.6m, based on the following assumptions:
Assumptions
Dec-24
Dec-23
Volatility 39% —
Correlation 0.49 —
Dividend yield 2.4% —
Weighted average fair value per
Number of shares share granted (€)
Dec-24
Dec-23
Dec-24
Dec-23
Options outstanding at beginning of period
—
—
—
—
Granted
687,442
—
18.27
—
Forfeited
—
—
—
—
Vested
—
—
—
—
Options outstanding at end of period
687,442
—
18.27
—
The weighted average remaining contractual life for the share options outstanding as at 31 December 2024
was three years (Dec-23: nil). During the year ended 31 December 2024 €2.1m (Dec-23: nil) was recorded
within personnel expenses within the consolidated statement of profit or loss.
CVC DIF acquisition employee share option plan
As part of the acquisition of CVC DIF, the Group is subject to a call option which, if exercised, provides the
Group with a discount over the price paid for 5% of the final 20% of CVC DIF which will be purchased in
January 2029. The discount allows the Group to purchase the 5% at the initial acquisition price. If the Group
elects to pay the discounted price for the final tranche of shares, the discount received is to be allocated to an
employee share option plan (ESOP). Employees who have been granted options under the ESOP must remain
in service for a period of four to six years from the option grant date. It is expected that the Group will exercise
the call option, and therefore the plan has been accounted for as an equity-settled share-based payment
under IFRS 2. As at 31 December 2024, 41% of the options had been awarded. The fair value of the share
options granted was estimated at the grant date to be €7.5m based on a Black-Scholes option price model,
using a strike price equal to the consideration paid for the initial 40% of DIF, a volatility of 40% and a risk-free
rate of 2.8%. The expense related to the ESOP is recorded within personnel expenses within the consolidated
statement of profit or loss, with a corresponding reduction to the change in valuation of the CVC DIF forward
liability. The expense for the year ended 31 December 2024 was €1.2m (Dec-23: nil).
9. General and administrative expenses
(a) General and administrative expenses
General and administrative expenses for the years ended 31 December 2024 and 31 December 2023 were
as follows:
All figures in € 000
Dec-24
Dec-23
General business expenses
39,422
40,557
Expenses incurred in businesses acquired
109,614
—
Exceptional expenses
44,802
55,326
Total general and administrative expenses
193,838
95,883
General and administrative expenses are made up of general business expenses, expenses incurred in
businesses acquired and exceptional expenses.
General business expenses include all non-people costs, including travel, IT, legal and professional services,
audit, and insurance.
Included in expenses incurred in businesses acquired are €88m with respect to the Advisory Group, which was
acquired by the Group on 1 January 2024, €13.7m with respect to CVC Credit, which was acquired by the
Group on 15 April 2024, and €10.9m with respect to CVC DIF, which was acquired by the Group on 1 July 2024.
Of these, €3m are considered exceptional in nature.
CVC Credits and CVC DIFs general and administrative expenses for the full year ended 31 December 2024
were €21.4m and €21.6m respectively. Refer to note 5 for further details.
Included in exceptional expenses for the year ended 31 December 2024 are expenses related to the listing on
Euronext Amsterdam of €35.9m (Dec-23: €47.5m), legal and professional fees related to the acquisition of
CVC DIF of €7.9m (Dec-23: €7.6m), and €1m (Dec-23: €0.3m) of other exceptional expenses.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
9. General and administrative expenses (continued)
(b) Audit and audit-related fees
The table below sets out the fees associated with services provided by the external auditor of the Group,
Deloitte LLP (Deloitte):
All figures in € 000 Dec-24 Dec-23
Audit Fees
Consolidated financial statements 6,421 834
Total audit fees 6,421 834
Non-audit fees
Other audit-related assurance services 2,027 —
Other non-audit services 7,852 7,711
Total non-audit fees 9,879 7,711
Total auditor’s remuneration 16,300 8,545
Included within other audit-related assurance services are fees associated to the review of interim financial
information of €0.8m (Dec-23: nil) and €1.1 million related to the Corporate Sustainability Reporting Directive
(CSRD) assurance services (Dec-23: nil). Included within other non-audit-related assurance services are fees related
to comfort letter procedures associated with the listing on Euronext Amsterdam of €6.5m (Dec-23: €7.6m).
For the year ended 31 December 2023, €1.6m related to audit fees and €0.2m related to non-audit fees were
charged to entities that became subsidiaries of the Group as part of Pre-IPO reorganisation in April 2024.
10. Depreciation and amortisation
All figures in € 000
Note
Dec-24
Dec-23
Depreciation
14
31,070
3,467
Amortisation
15
93,963
22,524
Total depreciation and amortisation
125,033
25,991
Included in depreciation for the year ended 31 December 2024 are depreciation costs related to property
and equipment acquired as part of the acquisition of the Advisory Group on 1 January 2024 (€23.3m), the
acquisition of CVC Credit on 15 April 2024 (€1.8m), and the acquisition of CVC DIF on 1 July 2024 (€2.2m).
Refer to note 14 for further details.
Included in amortisation for the year ended 31 December 2024 are amortisation costs related to intangible
assets acquired as part of the acquisition of the Advisory Group on 1 January 2024 (€5.2m), the acquisition of
CVC Credit on 15 April 2024 (€27m), and the acquisition of CVC DIF on 1 July 2024 (€39.3m). Refer to note 15
for further details.
11. Finance expense
All figures in € 000
Notes
Dec-24
Dec-23
Interest on borrowings
46,170
29,267
Interest on lease liabilities
23
4,003
252
Other finance expenses
2,862
1,732
Total finance expense
53,035
31,251
Interest on borrowings includes costs associated with €1.45bn of outstanding private placement notes issued
by the Group, including an additional €200m issued in June 2024. On a combined weighted average basis,
the notes have an 11-year tenor and an interest rate of 2.2%. Additionally, interest on borrowings includes
amounts related to the Group’s revolving credit facility (RCF). Refer to note 21 for further details.
Interest on lease liabilities relate primarily to rental payments in respect of the Group’s rented offices and
certain lease liabilities acquired as part of the Group’s acquisitions. Refer to note 23 for further details.
12. Income tax
(a) Income tax charge
Income tax charged in the consolidated statement of profit or loss:
All figures in € 000
Dec-24
Dec-23
Current tax
Current tax – current year
55,550
10,473
Current tax – prior years
10,922
—
Movement on uncertain tax provision
(3,816)
500
Deferred tax
Relating to origination and reversal of temporary differences
(62,306)
(1,204)
Income tax charge reported in the consolidated statement of
profit or loss
350
9,769
Included in current tax for the year ended 31 December 2024 is €15.7m with respect to the Advisory Group, which
was acquired by the Group on 1 January 2024, €33.2m with respect to CVC Credit, which was acquired by the
Group on 15 April 2024, and €11.1m with respect to CVC DIF which was acquired by the Group on 1 July 2024.
CVC Credit and CVC DIF’s current tax charges for the 12 months ended 31 December 2024 were €41.3m and
€25.7m respectively. Refer to note 5 for further details.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
12. Income tax (continued)
As part of the Group’s acquisition of Advisory Group on 1 January 2024 the Group acquired a provision of
€22.6m in respect of uncertain tax positions. As at 31 December 2024 the Group has revised certain provisions
following developments which has resulted in a net credit to the tax expense within the consolidated
statement of profit or loss of €3.8m.
Income tax expense recognised in the consolidated statement of profit or loss for the year ended 31 December
2024 includes €1.3m (Dec-23: nil) related to Pillar Two income taxes that are expected to arise under the GloBE
Rules. This component of current tax expense primarily relates to profits earned by certain Jersey entities that
are direct or indirect subsidiaries of intermediate parent entities, as defined for Pillar Two purposes, that are
based in jurisdictions where the rules have been enacted and are effective before 31 December 2024. The
Group’s Jersey entities will also be impacted by the implementation of MCIT law which will result in their
taxable profits being subject to a 15% tax rate for the year ended 31 December 2025. As a result of the MCIT
law the Group has recognised €24.8m of deferred tax assets as at 31 December 2024 (Dec-23: nil) in relation
to losses of the Group’s Jersey entities that can be utilised to offset future profits taxable under the MCIT law.
(b) Reconciliation of income tax charge
The tax charge on profit before tax is different to the corporation tax payable based on the profit for the year
taxed at a weighted average rate of 7.8% for the year ended 31 December 2024 (Dec-23: 2.9%) due to the
following factors:
All figures in € 000
Dec-24
Dec-23
Profit before income tax
308,466
312,483
Tax on profit before taxation at the standard rate of corporation
tax in each jurisdiction with a weighted average of 7.8% (Dec-23:
24,051
9,132
2.9%)
Change in non-recognised tax losses
(25,634)
—
Movement on uncertain tax provision
(3,816)
500
Non-deductible expenses
2,896
—
Effect of foreign taxes
1,948
137
Prior year adjustments
1,788
—
Other
(883)
—
At the effective income tax rate
350
9,769
The effective tax rate is the tax charge divided by the accounting profit. The Group has business presence in
multiple jurisdictions with different tax rates. The differences in the income tax charge from the statutory tax
rates in each jurisdiction result from, among others, movement in uncertain tax provisions, non-deductibility of
certain expenses, the net impact of foreign tax regimes and changes in non-recognised tax losses (including
losses of the Group’s Jersey entities that can be utilised to offset future profits taxable under the MCIT law).
(c) Deferred tax
Deferred tax reflected in the consolidated statement of financial position as follows:
All figures in € 000
Dec-24
Dec-23
Deferred tax assets
84,744
8,371
Deferred tax liabilities
(248,149)
(21,949)
Net deferred tax liabilities
(163,405)
(13,578)
Deferred tax reflected in the consolidated statement of financial position relates to the following:
All figures in € 000
Dec-24
Dec-23
Goodwill and other intangible assets
(227,147)
(13,578)
Investments in partnership interests
31,618
—
Deferred tax related to MCIT
24,779
—
Leases
1,344
—
Other
6,001
—
Net deferred tax liabilities
(163,405)
(13,578)
Reconciliation of deferred tax:
All figures in € 000
Dec-24
Dec-23
Net deferred tax liabilities as at 1 January 2024
(13,578)
(15,355)
Acquisition of subsidiaries
(86,568)
—
Tax (credit)/charge during the period recognised in profit or loss
(62,306)
1,204
Foreign exchange movement
(953)
573
Net deferred tax liabilities as at 31 December
(163,405)
(13,578)
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
12. Income tax (continued)
Deferred tax reflected in the consolidated statement of profit or loss relates to the following:
All figures in € 000
Dec-24
Dec-23
Leases
(1,064)
—
Investments in partnership interests
(16,121)
—
Goodwill and other intangible assets
(18,255)
(1,204)
Deferred tax related to MCIT
(24,205)
—
Other
(2,661)
—
Net deferred tax credit
(62,306)
(1,204)
The Group’s deferred tax assets and liabilities have been measured at the tax rates that are expected to apply
in the year when the asset is realised or liability is settled, based on the tax rates and tax laws that have been
enacted or substantively enacted at the reporting date.
The Group’s deferred tax assets include deferred tax on right-of-use assets and lease liabilities which will
unwind over the period of each lease, as well as tax losses carried forward, to the extent that they can be
utilised under relevant tax legislation and it is probable that future taxable profits will allow the deferred tax
asset to be recovered.
The Group’s deferred tax liabilities primarily represent a temporary difference arising on the remeasurement of
the fair value of investments, as well as on the amortisation of the intangible assets recognised on acquisition.
They unwind as investments are realised and intangible assets are amortised.
Certain of the Group’s Jersey entities have tax losses that can potentially be utilised under the MCIT law to
provide relief against the 15% MCIT tax rate. While there is some level of uncertainty in the interpretation of
certain aspects of the MCIT Law, as well as the OECD Pillar Two rules, as at 31 December 2024 the Group has
a recognised deferred tax asset of €24.8m in relation to a portion of these tax losses.
In addition, the Group’s Jersey entities have further such tax losses which would lead to an additional deferred
tax asset of €106.9m at the 15% MCIT tax rate, but this deferred tax asset has not been recognised in the year
ended 31 December 2024 due to a higher level of uncertainty in the interpretation of relevant aspects of the
MCIT Law.
There are no other material temporary differences for which no deferred tax was recognised.
13. Earnings per share (EPS)
Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent
by the weighted average number of ordinary shares outstanding during the period.
Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent by the
weighted average number of ordinary shares outstanding during the year plus the weighted average number
of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary
shares. The Group’s forward liability is convertible into ordinary shares, however, has not been included in the
computation of diluted EPS because its effect would have been anti-dilutive. The LTIP did not have a material
impact on the Group’s dilutive EPS.
The following table reflects the income and share data used in the basic and diluted EPS calculations:
Dec-24
Dec-23
Profit attributable to ordinary equity holders of the parent (€ 000)
225,295
280,493
Weighted average no. of ordinary shares for purposes of basic and
diluted EPS (000)
946,523
728,321
Basic and diluted earnings per share (€)
0.24
0.39
The weighted average number of shares for the year ended 31 December 2024 and the year ended
31 December 2023 reflects the impact of the issue of additional shares. Refer to note 29 for further details on
share issuances during the period.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
14. Property and equipment
Right-of- Fixtures Leasehold
All figures in € 000
Notes
use assets
Equipment
and fittings
improvements
Total
Cost
As at 1 January 2024
13,669
1,242
1,550
6,776
23,237
Acquisition of subsidiaries
5
85,951
3,486
7,432
18,308
 115,177
Additions
46,969
3,352
1,206
11,649
 63,176
Disposals
(141)
(125)
(24)
(500)
 (790)
Lease modification
10,030
—
—
—
 10,030
Impact of merger accounting
(1,584)
—
—
—
 (1,584)
Foreign exchange
4,489
338
408
1,532
6,767
As at 31 December 2024
159,383
8,293
10,572
37,765
216,013
Accumulated depreciation
As at 1 January 2024
3,557
525
277
1,411
5,770
Depreciation
21,944
2,389
1,819
4,918
 31,070
Disposals
(141)
(92)
(17)
(498)
 (748)
Foreign exchange
627
162
96
375
1,260
As at 31 December 2024
25,987
2,984
2,175
6,206
37,352
Net book value as at 31
December 2024
133,396
5,309
8,397
31,559
178,661
The Group acquired the Advisory Group on 1 January 2024, and as a result recognised certain property and
equipment assets on acquisition. The Group then underwent a Pre-IPO Reorganisation which resulted in
certain disposals which were accounted for using the merger accounting method. Refer to note 5 for further
details.
Additions in the year for right-of-use assets primarily relate to a new lease for office space in the US of €42.8m
which runs to 2040.
Movements in the right-of-use assets disposals line reflect the derecognition of assets and accumulated
depreciation upon the contractual expiration of the respective lease contracts.
Right-of- Fixtures Leasehold
All figures in € 000
use assets
Equipment
and fittings
improvements
Total
Cost
As at 1 January 2023
12,867
632
1,968
4,423
19,890
Additions
1,128
624
25
3,019
4,796
Disposals
—
—
(385)
(641)
(1,026)
Lease modification
(252)
—
—
—
(252)
Foreign exchange
(74)
(14)
(58)
(25)
(171)
As at 31 December 2023
13,669
1,242
1,550
6,776
23,237
Accumulated depreciation
As at 1 January 2023
1,292
250
285
1,019
2,846
Disposals
—
—
(244)
(348)
(592)
Depreciation
2,212
282
236
737
3,467
Foreign exchange
53
(7)
—
3
49
As at 31 December 2023
3,557
525
277
1,411
5,770
Net book value as at 31 December 2023
10,112
717
1,273
5,365
17,467
The net book value and depreciation of the right-of-use assets is broken down by class of underlying asset:
Equipment and
All figures in € 000
Properties
vehicles
Total
2024
Depreciation for the year ended 31 December 2024
21,175
769
21,944
Net book value at 31 December 2024
132,478
918
133,396
Right-of-use assets for the year ended 31 December 2023 were comprised only of properties.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
15. Goodwill and other intangible assets
(a) Goodwill and other intangible assets
Customer
related
intangible Computer
All figures in € 000
Notes
Goodwill
assets
Brands
software
Total
Cost
As at 1 January 2024
321,009
244,937
8,206
—
574,152
Acquisition of a subsidiary
5
491,185
880,070
14,350
6,685
1,392,290
Additions
—
—
—
4,408
4,408
Foreign exchange
21,450
16,369
548
266
38,633
As at 31 December 2024
833,644
1,141,376
23,104
11,359
2,009,483
Accumulated amortisation
As at 1 January 2024
—
40,823
3,277
—
44,100
Amortisation
—
85,916
2,872
5,175
93,963
Foreign exchange
—
3,658
299
252
4,209
As at 31 December 2024
—
130,397
6,448
5,427
142,272
Net book value as at 31
December 2024
833,644
1,010,979
16,656
5,932
1,867,211
Customer
related
intangible Computer
All figures in € 000
Goodwill
assets
Brands
software
Total
Cost
As at 1 January 2023
332,289
253,543
8,494
—
594,326
Foreign exchange
(11,280)
(8,606)
(288)
—
(20,174)
As at 31 December 2023
321,009
244,937
8,206
—
574,152
Accumulated amortisation
As at 1 January 2023
—
21,130
1,697
—
22,827
Amortisation
—
20,847
1,677
—
22,524
Foreign exchange
—
(1,154)
(97)
—
(1,251)
As at 31 December 2023
—
40,823
3,277
—
44,100
Net book value as at 31 December 2023
321,009
204,114
4,929
—
530,052
Goodwill arose following the acquisition of CVC Secondaries on 11 January 2022 (€342.5m as at 31 December
2024 (Dec-23: €321m)), the acquisition of the Advisory Group on 1 January 2024 (€117.3m as at 31 December
2024 (Dec-23: nil)), the acquisition of CVC Credit on 15 April 2024 (€108.7m as at 31 December 2024 (Dec-23:
nil)), and the acquisition of CVC DIF on 1 July 2024 (€265.2m as at 31 December 2024 (Dec-23: nil)). Refer to
note 5 for further details.
Of the Group’s customer-related intangible assets €196m relate to the acquisition of CVC Secondaries (Dec-23:
€204.1m) which will be fully amortised by 2034, €179.3m relate to the acquisition of CVC Credit (Dec-23: nil)
which will be fully amortised by 2034, and €635.7m (Dec-23: nil) relate to the acquisition of CVC DIF which will
be fully amortised by 2037.
(b) Impairment testing
Goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate
potential impairment loss. Goodwill is tested for impairment at the segment level, which is the lowest level
within the Group where goodwill is monitored for internal management purposes. For impairment testing,
goodwill acquired through the acquisition of CVC Secondaries has been allocated to the secondaries operating
segment, goodwill acquired through the acquisition of the Advisory Group has been allocated to the Private
Equity operating segment, goodwill acquired through the acquisition of the Credit Group has been allocated
to the Credit operating segment, and goodwill acquired through the acquisition of CVC DIF has been allocated
to the infrastructure operating segment.
The Group performed its annual impairment test of the Private Equity, Secondaries and Credit operating
segments as at 30 June 2024, and infrastructure segments as at 31 December 2024, and their respective
recoverable amounts have been determined based on a value in use calculation (VIU) using cash flow
projections from financial budgets covering up to a five-year period. Key assumptions in the Group’s financial
forecasts include projected earnings, the discount rate and the terminal value. The projected cash flows are
based on the contractual management fees expected to be earned on existing funds, as well as new capital
raising, deployment of capital and costs of the business, taking into account growth plans for the segment as
well as past experience.
The pre-tax discount rates were estimated based on the current market assessment of the risks specific to the
segment. The discount rate calculation is based on the specific circumstances of the segment and is derived
from its WACC. The WACC takes into account both debt and equity. The cost of equity is derived from the
expected return on investment. The cost of debt is based on the interest-bearing borrowings the segment is
obliged to service. The long-term growth rate was calculated based on a long-term growth rate assumption,
in line with the long-term inflation and nominal GDP growth expectations for UK and EU markets.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
15. Goodwill and other intangible assets (continued)
As a result of this analysis, significant headroom was noted and therefore no impairment was identified.
Management believes that any reasonably possible change in any of the key assumptions would not cause
the carrying amount to exceed the recoverable amount for any operating segment. Key inputs into the above
impairment assessments are presented in the following table:
Dec-24
Dec-23
Pre-tax discount Long-term Pre-tax discount Long-term
rate growth rate rate growth rate
(%) (%) (%) (%)
Secondaries
17.0%
2.5%
15.0%
2.5%
Private Equity
13.1%
2.5 %
n/a
n/a
Credit
16.8%
2.5 %
n/a
n/a
Infrastructure
18.9%
2.5 %
n/a
n/a
16. Carried interest and performance fees receivables
The carried interest and performance fees receivables relate to revenue which has been recognised by the
Group in respect of its share of profits from investment funds and credit vehicles.
Revenue is only recognised to the extent it is highly probable that the revenue recognised would not result in
significant revenue reversal of any accumulated revenue recognised on the completion of an investment fund or
credit vehicle. The reversal risk is mitigated through the application of constraints to the fair value of unrealised
investments when calculating the value of carried interest or performance fee revenue to be recognised.
A sensitivity analysis of the impact of a change in the value of unrealised fund assets as a result of reasonably
possible changes in the constraints applied is included within note 7.
All figures in € 000
Dec-24
Dec-23
Opening balance
190,461
148,957
Acquisition of a subsidiary
6,558
—
Carried interest additions
774
—
Release of carried interest provision
(115,824)
(121,666)
Income recognised in the period
173,170
163,170
Foreign exchange movements
(213)
—
Closing balance
254,926
190,461
Carried interest and performance fees of €173.2m have been recognised for the year ended 31 December 2024
(Dec-23: €163.2m) where the relevant funds have met the Group’s criteria for carried interest revenue
recognition under IFRS 15. Carried interest additions are contributions made to carried interest entities for the
Group’s participation in carried interest from the funds as described in note 3(a).
17. Financial assets at fair value through profit and loss
Investments representing the Group’s interests in investment vehicles are initially recognised at fair value and
subsequently measured at fair value through profit or loss as investment income.
The financial assets are measured at fair value through profit or loss as the business model of each investment
vehicle is to manage the assets and to evaluate their performance on a fair value basis.
All figures in € 000
Notes
Dec-24
Dec-23
Opening balance
935,674
868,437
Acquisition of subsidiaries
600,962
—
Purchase of investments
479,445
114,131
Proceeds from sale of investments
(327,735)
(128,016)
Investment income
199,868
81,428
Foreign exchange movements
2,318
(306)
Closing balance
19, 27
1,890,532
935,674
Included in the financial assets at fair value through profit or loss, are investments with a carrying amount of
€91.8m as at 31 December 2024 (Dec-23: nil), which are pledged as collateral for the Group’s borrowings.
During the year, the Group transferred a portion of a fund investment to an unconsolidated structured entity
in exchange for a repayment of €2.3m on a credit facility. The transfer is recorded as a proceed from sale of
investments, and had no impact on the Group’s cash.
As part of its final reorganisation steps the Group acquired CVC Capital Partners Strategic Opportunities II
Limited and CVC Capital Partners VII Limited, and as a result is considered to control CVC Investment
Strategic Opportunities II L.P. and CVC Capital Partners Investment Europe VII L.P. from 30 April 2024 and
6 June 2024, respectively. The Group already had an interest in CVC Investment Strategic Opportunities II L.P.
and CVC Capital Partners Investment Europe VII L.P. prior to gaining control and therefore consolidated an
additional €447.2m of financial assets at fair value through profit or loss relating to non-controlling interests
from these dates. Refer to note 5 for further details
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
18. Trade and other receivables
All figures in € 000
Notes
Dec-24
Dec-23
Non-current:
Loans receivable
137,403
102,375
Non-financial receivables
5,165
4,767
Other receivables
4,737
—
Preference shares
19
21,729
—
Total non-current trade and other receivables
169,034
107,142
Current:
Loans receivable
12,172
5,119
Due from funds
19, 32
38,842
28,801
Related party receivables
32
8,483
7,491
Non-financial receivables
33,270
6,665
Other receivables
68,286
9,752
Management fees receivable
19
42,304
—
Total current trade and other receivables
203,357
57,828
There are no material differences between the above amounts for trade and other receivables and their
fair value.
Non-current and current loans receivable relate to amounts held at amortised cost which include
the following:
– loans of €6.3m (Dec-23: €6.3m) are unsecured, bear interest at 2.25% per annum and are repayable the day
following the dissolution of the relevant partnerships. This includes a €2.5m (Dec-23: €2.5m) loan with key
management personnel;
– loans of €35.3m (Dec-23: €34.6m) are secured, bear interest at 2% per annum and are repayable in 2031.
This includes a €13.7m (Dec-23: €13.4m) loan with key management personnel;
– loans of €3.7m (Dec-23: €5m) are secured, bear interest at EURIBOR + 2% per annum and are repayable
in 2025;
– loans of €6.4m (Dec-23: nil) are secured, bear interest at 2.25% and are repayable in 2030;
– promissory notes extended by the Group. The facilities are unsecured, bear interest at rates of 1.3% - 4.42%
per annum and are repayable between 2028 and 2030. The total amount outstanding as at 31 December
2024 is €53.2m (Dec-23: €31.5m);
– RCF extended by the Group. Interest rates are determined by the type of borrowing at each drawdown and
are based on euro short-term rate for one month plus 0.8%. The facility is secured and repayable in 2028.
The total credit facility available to the borrower is €200m and the amount drawn at 31 December 2024
is €1.3m (Dec-23: nil);
– loans of €9.2m (Dec-23: nil) to a related party entity, which are secured, interest free and repayable in 2027;
– loans of €31m (Dec-23: nil) which are unsecured and bear interest at 2.25% - 5% per annum; and
– loans of €2.9m (Dec-23: nil) which are unsecured and bear interest at EURIBOR + 3% per annum.
Non-financial receivables include placement fees, and prepaid subscriptions and insurance costs. €5m of
amortisation related to placement fees was recognised in the year ended 31 December 2024 (Dec-23: €1.2m).
Included in other receivables are sundry debtors and amounts related to rental deposits.
Preference shares relates to those purchased at the same time as the acquisition of 60% of CVC DIF on 1 July
2024. The preference shares are due a fixed preferred dividend of 6% or 8% per annum, have no voting rights,
and redemption is solely within the power of the Group. As a result, the Group has classified these as held at
amortised cost. Additionally, the Group has granted the CVC DIF selling shareholders the irrevocable right, but
not the obligation, to require the Group to sell and transfer all or a fraction of preferences shares for cash.
During the period €4.4m of preference shares were sold to the CVC DIF selling shareholders.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
19. Financial assets
The following tables analyse the Group’s assets in accordance with the categories of financial instruments
in IFRS 9.
Fair value Financial assets
through profit or at amortised
All figures in € 000
Notes
loss
cost
Total
At 31 December 2024
Financial assets at fair value through
profit or loss
17
1,890,532
—
1,890,532
Loans receivable
—
149,575
149,575
Other receivables
—
73,023
73,023
Due from funds
18
—
38,842
38,842
Related party receivables
18
—
8,483
8,483
Management fees receivable
18
—
42,304
42,304
Preference shares
18
—
21,729
21,729
Cash and cash equivalents
20
—
618,289
618,289
Total financial assets
1,890,532
952,245
2,842,777
Fair value Financial assets
through profit or at amortised
All figures in € 000
Notes
loss
cost
Total
At 31 December 2023
Financial assets at fair value through
profit or loss
17
935,674
—
935,674
Loans receivable
—
107,494
107,494
Other receivables
—
9,752
9,752
Due from funds
18
—
28,801
28,801
Related party receivables
18
—
7,491
7,491
Cash and cash equivalents
20
—
100,677
100,677
Total financial assets
935,674
254,215
1,189,889
20. Cash and cash equivalents
For the purpose of the statement of cash flows, cash and cash equivalents comprise of the following:
All figures in € 000
Dec-24
Dec-23
Cash at banks
585,674
99,714
Short term deposits
32,615
963
Cash and cash equivalents at the end of the period
618,289
100,677
21. Borrowings
(a) Borrowings
All figures in € 000
Dec-24
Dec-23
Non-current:
Borrowings held at amortised cost
1,593,160
1,432,402
Borrowings held at fair value through profit or loss
1,088
—
Total non-current borrowings
1,594,248
1,432,402
Current:
Borrowings held at amortised cost
82,081
6,902
Total current borrowings
82,081
6,902
As at 31 December 2024, the Group has €1.45bn of outstanding private placement notes (Dec-23: €1.25bn).
The loan notes are measured at amortised cost and bear interest at a weighted average of 2.2% per annum.
The weighted average tenor as at 31 December 2024 is 11 years. Qualifying costs have been capitalised and are
amortised over the life of the notes.
The notes were partially swapped by the note holders into CAD, USD and GBP. The Group has an option to
prepay the private placement notes. The Group concluded that the economic risks of these prepayment
options are not closely related to the loan notes and therefore are recorded as separable embedded derivatives
measured at fair value. The fair value of the prepayment options are nil as at 31 December 2024 (Dec-23: nil).
The Group has access to a €600m RCF, which is available to the Group until 24 August 2028. As at
31 December 2024, the Group had €72.5m (Dec-23: €200m) drawn down on the facility. Qualifying costs have
been capitalised and are amortised over the life of the facility. Amortised costs are included within finance
expense. Interest rates are determined at each drawdown based on the relevant currency’s reference rate for
the relevant drawdown period plus 1.2%.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
21. Borrowings (continued)
Both of the above private placement notes and the RCF are subject to two financial covenants: one requiring
the maintenance of minimum assets under management (AUM) of €20bn (plus 50% of the AUM of businesses
acquired) and a second setting a maximum total net leverage ratio of 4:1. The total net leverage ratio is
calculated on the basis of total debt for borrowed money less unrestricted cash compared to EBITDA, adjusted
for certain items as detailed within the credit agreement, for the most recent period of four consecutive
quarters. Both covenants are tested biannually as at 31 December and as at 30 June. As at 31 December 2024,
the Group was fully compliant with the covenants.
The Group’s consolidated structured entities have access to revolving credit facilities to cover funding of
investments over the short term, usually a 12-month period. The total amount available to these consolidated
structured entities at 31 December 2024 was €495.3m (Dec-23: €76.9m). The total amount outstanding
at 31 December 2024 was €73.4m (Dec-23: nil). The balance outstanding as at 31 December 2024 was
repaid post-period end through calls partly funded by commitments from non-controlling interests of the
consolidated structured entities. During the year, the Group transferred a portion of a fund investment
to an unconsolidated structured entity in exchange for a repayment of €2.3m on a revolving credit facility.
The transfer had no impact on the Group’s cash.
Borrowings also include €84.7m (Dec-23: nil) of CLO retention financing acquired as part of the acquisition
of CVC Credit. CVC Credit entered into a number of CLO repurchase agreements specific to each CLO, to
finance a portion of risk retention holdings. Generally, upon a counterparty default, the Group can terminate
the CLO repurchase agreement and offset amounts it owes against collateral, if any. During the term of
a transaction entered into under the CLO repurchase agreement, the Group will deliver cash or additional
securities acceptable to the counterparty if the securities sold are in default. The CLO repurchase agreement
may be terminated at any time upon certain defaults or circumstances agreed upon by the parties. The
repurchase agreements may result in credit exposure in the event the counterparty to the transaction is unable
to fulfil its contractual obligations. The Group minimises the credit risk associated with these activities by
monitoring counterparty credit exposure and collateral values. Other than margin requirements, the Group is
not subject to additional terms or contingencies which would expose the Group to additional obligations based
upon the performance of the securities pledged as collateral. The carrying amount of investments pledged as
collateral for these loans is €91.8m.
(b) Guarantees
The Group is a guarantor on a €200m RCF provided to an entity outside of the Group. The RCF matures in
August 2028 and contains two financial covenants: one requiring the guarantors to maintain minimum AUM
of €20bn (plus 50% of the AUM of businesses acquired by the guarantors) and a second setting a maximum
total net leverage ratio of 4:1. The total net leverage ratio is calculated on the basis of total debt for borrowed
money less unrestricted cash compared to EBITDA, adjusted for certain items as detailed within the credit
agreement, for the most recent period of four consecutive quarters. As at 31 December 2024, the Group was
fully compliant with the covenants. As at 31 December 2024, the RCF had €143.3m drawn (Dec-23: €137.5m).
The Group also provided guarantees to a lending institution regarding loans held by employees for investments
in affiliated vehicles. The amount guaranteed at 31 December 2024 was €0.03m (Dec-23: nil).
Letters of credit have been issued, and guarantees provided, on behalf of the Group to landlords in respect of
lease commitments for €5.5m (Dec-23: €2.4m). This amount represents the maximum exposure of the Group.
As discussed in note 2, included in management fees are fees earned by the Group acting as an underwriter or
placement agent in offerings or placements of debt and/or equity financing, and as a result at times has
outstanding commitments. As at 31 December 2024 the value of outstanding commitments was nil (Dec-23: nil).
22. Forward liability
Under the terms of the share purchase agreement between the Group and CVC Secondaries, the Group
agreed to acquire 60% of CVC Secondaries at the initial acquisition (completed 11 January 2022) and the
remaining 40% interest across two later acquisition tranches. In addition to the acquisition of CVC
Secondaries, the Group acquired an initial 60% interest in CVC DIF on 1 July 2024. Under the terms of the
share purchase agreement the Group agreed to acquire 60% of CVC DIF at the initial acquisition date and
the remaining 40% interest across two later acquisition tranches. The Group has recognised a financial liability
in respect of the obligation to acquire the remaining 40% interest in both CVC Secondaries and CVC DIF.
For further details refer to note 5.
The value of each liability was measured at their respective initial acquisition dates at the present value of the
future acquisition cost as determined in accordance with the share purchase agreement. The liability has been
recalculated at each subsequent balance sheet date and any changes in value have been recorded through
the consolidated statement of profit or loss.
On 10 May 2024, immediately following the IPO, the Group acquired a further 20% interest in CVC
Secondaries in exchange for 25,536,048 shares valued at €357.5m and cash of €5.2m. On 2 July 2024, the
Group acquired the remaining 20% interest in CVC Secondaries in exchange for a further 25,536,048 shares
valued at €438.7m, and cash of €3.6m. As a result of these acquisitions of CVC Secondaries for shares issued
in the Group, the liability with respect to CVC Secondaries has been settled.
A reconciliation of the measurement of the forward liability is provided below.
All figures in € 000
Notes
Dec-24
Dec-23
Opening balance
592,019
507,194
Settlement of liability
(805,026)
—
Liability recognised on acquisition
537,280
—
Change in valuation of forward liability
463,305
84,825
Closing balance
26
787,578
592,019
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
23. Lease liability
All figures in € 000
Notes
Dec-24
Dec-23
Opening balance
11,880
13,352
Acquisition of subsidiary
85,722
—
Additions
46,488
1,128
Impact of merger accounting
(1,354)
—
Impact of lease modifications
9,948
(252)
Accretion of interest
4,003
252
Payments
(20,545)
(1,905)
Foreign exchange movement
4,601
(695)
Closing balance
140,743
11,880
Non-current
124,420
9,589
Current
16,323
2,291
Total leases
140,743
11,880
The lease liabilities relate primarily to rental payments in respect of the Group’s rented offices. The office lease
contracts range from 0.5-16 years. The weighted-average remaining lease term at 31 December 2024 is 9.7
years (Dec-23: 7.6 years).
Lease contracts include either inflationary increases to the rent payable or periodic review of the rent payable.
The liability has been determined at each period end, based upon expected changes in the contractual rent
payable, as well as any planned exercise of any break/early exit clauses.
Extension options within leases have been incorporated into the lease liability when it is concluded the
extension option is likely to be exercised. The Group periodically reassesses the lease term and whether it will
exercise or not exercise the extension option. Should a change occur, the Group modifies the lease liability and
associated right-of-use asset to reflect the remaining expected cash flows.
All lease liabilities have been modelled to the end of their non-cancellable lease term, with no breaks assumed.
Therefore, the lease exposure stated is the maximum exposure. The lease liability excludes those leases which
have not yet commenced, but to which the Group is committed. Additions to lease liabilities in the year
primarily pertain to an office lease in the US of €42.4m which the Group will have the right of use until 2040.
The Group acquired the Advisory Group on 1 January 2024, and as a result recognised certain lease liabilities
on acquisition. The Group then underwent a Pre-IPO Reorganisation which resulted in certain disposals which
were accounted for using the merger accounting method. For further details refer to note 5.
For further details on the amounts relating to the lease liabilities included in the consolidated statement of
profit or loss, refer to note 11.
24. Provisions
All figures in € 000
Dec-24
Dec-23
Carried interest provision
215,551
175,895
SAR provision
9,703
—
Dilapidation provision
3,158
485
Other provisions
864
—
Total
229,276
176,380
Carried interest provision:
The carried interest provision relates to the receipts of carried interest that do not yet meet the criteria to be
recognised as carried interest revenue under IFRS 15. As and when the Group is entitled to recognise carried
interest income, an amount will be released from the carried interest provision. At the end of the life of each
fund, amounts received by the Group that have not met the recognition criteria under IFRS 15 will be repaid.
Refer to note 16 and below for further details.
All figures in € 000
Notes
Dec-24
Dec-23
Opening balance
175,895
175,895
Carried interest received
143,724
121,666
Carried interest released to carried interest receivable
16
(115,824)
(121,666)
Foreign exchange movements
11,756
—
Closing balance
215,551
175,895
The participants in the carried interest sharing partnerships (each a CIS partnership), which includes the Group,
may in certain circumstances be required to repay amounts distributed to them in excess of their entitlement
(for example, in a carry clawback situation) by way of a final and balancing contribution. In the event of a fund
carry clawback situation, for amounts that cannot be clawed back from the relevant CIS partnership (and,
therefore, by the CIS partnership from the participants in that CIS partnership), the SIF (as parent of the Group
at the time of the establishment of the funds) has provided a guarantee to the funds for unrecovered amounts
of clawback carry.
SAR provision:
As part of the acquisition of CVC DIF, the Group became liable to a SAR provision which, per the share
purchase agreement, is reimbursable by the CVC DIF selling shareholders. The provision will be fully settled at
the time of the final acquisition of CVC DIF in 2029.
Dilapidation provision:
The dilapidation provision relates to property leases currently occupied by the Group. The provision is an
estimate of costs to be incurred in restoring the leased properties to the condition required by lessor
immediately before the end of the term of the relevant leases.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
25. Trade and other payables
All figures in € 000
Notes
Dec-24
Dec-23
Non-current:
Accrued expenses
35,424
6,033
Total non-current trade and other payables
35,424
6,033
Current:
Accrued expenses
274,768
67,606
Deferred income
7
5,570
3,113
Other payables
19,700
21,299
Total current trade and other payables
300,038
92,018
Accrued expenses primarily includes employee bonuses and related social security taxes. Deferred income are
contract liabilities related to management fees that have been received in relation to fund management
activity but have not yet been earned. Refer to note 7(b) for further details. There are no material differences
between the above amounts for trade and other payables and their fair value.
26. Financial liabilities
(a) Classification of financial liabilities
The following table analyses the Group’s liabilities in accordance with the categories of financial instruments in IFRS 9.
Fair value Financial
through profit liabilities at
All figures in € 000
Notes
or loss
amortised cost
Total
As at 31 December 2024
Borrowings
1,088
1,675,241
1,676,329
Forward liability
22
787,578
—
787,578
Lease liabilities
23
—
140,743
140,743
Accrued expenses
—
310,191
310,191
Other payables
25
—
19,700
19,700
Total financial liabilities
788,666
2,145,875
2,934,541
Fair value Financial
through profit liabilities at
All figures in € 000
Notes
or loss
amortised cost
Total
As at 31 December 2023
Borrowings
—
1,439,304
1,439,304
Forward liability
22
592,019
—
592,019
Lease liabilities
23
—
11,880
11,880
Accrued expenses
—
73,640
73,640
Other payables
25
21,299
21,299
Total financial liabilities
592,019
1,546,123
2,138,142
(b) Changes in liabilities arising from financing activities
All figures in € 000
Notes
Dec-24
Dec-23
As at 1 January
1,451,184
1,352,561
Changes from financing cash flows:
Net proceeds from private placement note
196,768
—
Drawings on credit facilities
668,191
594,102
Repayment of credit facilities
(757,949)
(495,904)
Interest paid
(39,404)
(27,622)
Lease payments
(16,542)
(1,653)
Total changes in cash flows arising on financing
activities from borrowing and leases
51,064
68,923
Leases acquired through business combinations
84,368
—
Borrowings acquired through business combinations
123,293
—
Non-cash settlement of borrowings
(4,422)
—
New lease liabilities and lease modifications
56,436
876
Interest accrued
50,173
29,518
Foreign exchange movements
4,976
(694)
Total financial liabilities
1,817,072
1,451,184
Non-cash settlement of borrowings includes the transfer of a fund investment to an unconsolidated structured
entity in exchange for a repayment of €2.3m on a credit facility, as well as the forgiveness of interest as part of
the Advisory Group acquisition of €2.1m. These transactions had no impact on the Group’s cash.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
27. Financial risk management
In its activities, the Group is exposed to various financial risks: price/valuation risk, market risk (including
exposure to foreign currencies), credit risk, interest rate risk and liquidity risk arising from financial instruments.
The directors are responsible for the creation and control of an overall risk management policy for the Group.
The Group’s consolidated statement of financial position is made up predominantly of investments into
investment funds and credit vehicles. The assets of a private equity fund are controlling or minority stakes,
typically in private companies, and their debt. The financial risks relating to such investments are inherently
different, due to the nature of the investment as equity or debt and recovery and returns from capital invested
will depend upon the financial health and prospects of each underlying investee entity. Each investment fund
and credit vehicle is constructed as a portfolio of assets, diversified by the number of assets, their industry and
geography.
Risk management policies are established to identify and analyse the risks faced by the Group and to set
appropriate risk limits and controls. Risk management policies and systems are reviewed on a regular basis
to reflect changes in the market conditions and the Group’s activities. The Group, through its training and
management standards and procedures, aims to develop a disciplined and constructive control environment
in which all employees understand their roles and obligations.
(a) Price/valuation risk
Price/valuation risk is the uncertainty about the difference between the reported value and the price that could
be obtained on exit or maturity. This principally relates to investments in portfolios companies and debt
investments, and investments held in CLOs.
This uncertainty arises due to the use of unobservable inputs, such as EBITDA, in the calculation of fair value, the
performance and financial health of portfolio companies, and ultimately – as it relates to investments in private
equity – what a third party may be willing to pay for the business. There is less uncertainty for investments in
debt as the upside is capped to the maximum of the principal and interest receipts, whereas private equity
investments have greater potential for larger changes in their valuation as the upside is not capped.
The Group monitors the performance of each investment closely. Portfolio monitoring is embedded and
maintains focus throughout the investment life of each company. All investments are formally reviewed
through dedicated portfolio monitoring committees. The review process involves a rigorous assessment of the
company’s financial performance, financial health (including covenant coverage) and exit prospects.
The Group reviews valuations of all investments at least twice a year, with private equity investments valued in
line with IPEV Guidelines. Investments in CLOs are valued using a market standard model, Intex, that considers
the cash flow structure of each transaction. This output is consolidated with discounted cash flow techniques
to achieve a present value. Each investment undergoes the same detailed valuation process, in accordance
with the Group’s valuation policies. Valuations are presented and discussed at the relevant committee for final
evaluation and approval. Further detail about the valuation process is included within note 3.
A reasonably possible change in the values of financial assets at fair value through profit or loss classified as
Level 3 is shown in note 27(f).
(b) Foreign currency risk
Foreign currency risk is the risk of losses or other adverse effects resulting from a change in a foreign exchange
rate, or from other unfavourable changes in relation to foreign currency.
The Group is primarily exposed to two types of foreign currency risk:
– translation risk: The risk of changes in the rates at which assets, liabilities, income or costs in foreign
currencies are translated into the reporting currency; and
– transaction risk: The adverse effect that foreign exchange rate fluctuations can have on a completed
transaction prior to settlement. It is the exchange rate, or currency risk associated specifically with the time
delay between entering into a trade or contract and then settling it.
The Group is exposed to translation and transaction risk as a result of it holding assets and liabilities
(including financial assets at fair value through profit or loss, carried interest receivable, and carried interest
provision), and having operating activities denominated in currencies other than EUR (its reporting and
presentational currency).
The Group’s income and expenses are primarily denominated in EUR or USD. In most subsidiaries, the income
and expenses are denominated in the same currency as the functional currency of the entity and therefore
does not create any currency effects in the Group’s consolidated statement of profit or loss. However, when
income and expenses arise in entities with a functional currency other than EUR, the Group’s operating profits
will be affected by changes in exchange rates in the period between initial recognition of revenue or expense
and settlement.
The table below demonstrates the sensitivity of profit before income tax to a 10% change in the exchange rate
of foreign currencies compared to EUR in its financial assets at fair value through profit or loss, carried interest
receivable, carried interest provision, and foreign operations:
All figures in € 000
Dec-24
Dec-23
(+/-)
(+/-)
Foreign currency sensitivity:
10% effect on profit before income tax (USD)
48,634
22,225
10% effect on profit before income tax (Other)
42,088
15,818
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CVC Capital Partners plc Annual Report 2024
27. Financial risk management (continued)
(c) Credit risk
Credit risk is the risk that a counterparty is unable to meet their contractual obligations in full, when due.
Potential areas of credit risk consist of cash and cash equivalents, including deposits with banks and financial
institutions and short-term receivables. The Group has not experienced any significant defaults in prior periods.
The Group limits its exposure in relation to cash balances by only dealing with well-established financial
institutions of high-quality credit standing. As at 31 December 2024, the Group’s material cash balances were
held with financial institutions that had the following S&P ratings:
Distribution of cash and cash equivalents by credit rating of counterparties:
Credit rating
Dec-24
AAA
3%
AA-
9%
A+
63%
A
22%
BBB+ or lower
3%
Total cash and cash equivalents
100%
Trade and other receivables are comprised primarily of loans receivable and amounts due from investment
vehicles. Loans receivable relates to amounts due from staff and shareholders; these have historically been
repaid when reaching expiration with no history of default. Amounts due from investment vehicles are
specifically management fees or amounts due from portfolio companies. The funds are managed by the
Group on behalf of its clients, who have made commitments or subscriptions to the vehicles. These trade and
other receivables are repaid from commitments made by investors to the funds. These commitments can be
drawn at any time. The Group considers the probability of default to be remote and therefore no expected
credit loss has been recognised.
Sundry debtors included within other receivables primarily relate to recoverable expenses paid by the Group on
behalf of others. These are repaid each period and have had no history of default. Deposits included within
other receivables primarily relate to long-term rental deposits which have no history of default. The Group
considers the probability of default to be remote and therefore no expected credit loss has been recognised.
(d) Interest rate risk
The Group’s interest rate risk related to fluctuations in market interest rates with potential impact on the
Group’s finance expense is limited as the Group’s main source of borrowings, the private placement notes, are
held at fixed interest rates.
(e) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Group’s reputation.
Liquidity outlook is monitored and regularly reviewed by the directors.
The timing of the Group’s management fee receipts and operating expenditure are predictable. The timing,
amount and profits from the Group’s investments into and divestments from the funds are inherently less
predictable, however a reasonable period of notice is given to all clients, including the Group, ahead of
drawing of funds.
The Group’s policy is to maintain sufficient amounts of cash and cash equivalents to meet its commitments at
a given date. The Group has the use of a €600m RCF to assist in managing liquidity.
The tables below summarise the Group’s undiscounted financial liabilities by the time frame they are
contractually due to be settled including interest payable. This analysis excludes liabilities which are not
financial liabilities (for example, deferred income). The forward liability represents the value of the Group’s
obligation to acquire the remaining 40% interest in CVC DIF, and will be settled in shares of CVC Capital
Partners plc.
Due within Due between Due within Due more
As at 31 December 2024 1 year 1 and 2 years 2 and 5 years
than 5 years
Total
Trade and other payables
300,038
6,719
24,157
4,548
335,462
Forward liability
—
—
1,245,216
—
1,245,216
Borrowings
113,548
31,467
172,882
1,758,880
2,076,777
Lease liabilities
24,130
22,456
54,389
87,737
188,712
Total financial liabilities
437,716
60,642
1,496,644
1,851,165
3,846,167
Due within Due between Due within Due more
As at 31 December 2023 1 year 1 and 2 years 2 and 5 years
than 5 years
Total
Trade and other payables
92,018
6,033
—
—
98,051
Forward liability
643,530
—
—
—
643,530
Borrowings
29,057
22,155
266,465
1,434,036
1,751,713
Lease liabilities
2,579
2,624
3,710
4,584
13,497
Total financial liabilities
767,184
30,812
270,175
1,438,620
2,506,791
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CVC Capital Partners plc Annual Report 2024
27. Financial risk management (continued)
(f) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date in the principal, or in its absence, the most
advantageous market to which the Group has access to at that date. The fair value of a liability reflects its
non-performance risk.
Financial assets
Investment in managed funds
When fair values of publicly traded closed-ended funds and open-ended funds are based on quoted market
prices in an active market for identical assets without any adjustments, the instruments are included within
Level 1 of the hierarchy. Investments quoted on an active market are valued at the price within the bid/ask
spread that is most representative of fair value on the measurement date.
In estimating fair value for an investment, the Group uses a valuation technique that is appropriate in light of
the nature, facts and circumstances of the investment and utilises reasonable market data and inputs. The
valuations of unquoted companies are generally obtained by 1) estimating the enterprise value; 2) deducting
from the enterprise value the value of all financial instruments ranking ahead of the shareholders, to derive the
attributable enterprise value; and 3) allocating the attributable enterprise value between ordinary shares,
preference shares (including rolled-up dividends) and loan stock (including rolled-up interest).
In measuring fair value, consideration is also given to any transactions in the interests of the funds. The
underlying assets in each fund consist of portfolios of investments in controlling or minority stakes, typically
in private companies, and their debt. Due to the level of unobservable inputs involved in the valuation of
individual assets within each fund, and there being no observable price for each investment, such investments
are classified as Level 3 financial assets under IFRS 13.
Investment in private companies
The Group takes debt and equity stakes in private companies that are not quoted in an active market and uses
a market-based valuation technique for these positions.
The Group’s investments in private companies are carried at fair value using the most appropriate valuation
technique based on the nature, facts and circumstances of the private company. The primary valuation
technique is the multiple technique. A number of earnings multiples are available, including enterprise value/
EBITDA, enterprise value/EBITA, and enterprise value/EBIT. Earnings used will generally be reported historical,
last 12 months or forecast (subject to confidence in the forecast).
To derive a comparative multiple to apply against the earnings the Group typically refers to a selection of
similar quoted companies and/or recent market transactions. The Group determines comparable private and
public companies, based on industry, size, location, leverage and strategy, and calculates an appropriate
multiple for each comparable company identified. These comparable multiples should be adjusted to reflect
the points of difference between the comparable company and the company being valued.
Net asset value is another technique available. This valuation technique involves deriving the value of a
business by reference to the value of its net assets. This technique is likely to be appropriate for a business
whose value derives mainly from the underlying fair value of its assets rather than its earnings, such as asset
intensive companies and investment businesses.
Alternative valuation techniques may be used where there is a recent offer or a recent comparable market
transaction, which may provide an observable market price and an approximation to fair value of the private
company. These generally accepted industry standard techniques can also be used as primary or secondary
techniques or applied in situations that other techniques may be incapable of addressing, such as businesses
going through a period of great change or in their start-up phase. The Group classified these assets as Level 3.
Further details of the approach to the valuation of investments are set out within note 3.
Investments in CLOs
Such investments are valued using market standard third party modelling software that considers the cash
flow structure of each transaction. This output is consolidated with discounted cash flow techniques to derive
the present value. Key inputs to these models/techniques are: discount factors, market reinvestment spreads,
forecasted defaults, and prepayment and recovery rates. CLO loan note interest accrued at the reporting
date, and due on the next payment date, is recorded within investment fair value at each balance sheet date.
The following table provides the fair value measurement hierarchy of the Group’s financial assets at fair value
through profit or loss.
All figures in € 000
Dec-24
Dec-23
Level 2
15,793
—
Level 3
1,874,739
935,674
Total financial assets at fair value through profit or loss
1,890,532
935,674
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CVC Capital Partners plc Annual Report 2024
27. Financial risk management (continued)
A reconciliation of Level 2 fair values for financial assets is set out in the table below:
All figures in € 000
Dec-24
Dec-23
Level 2 financial assets at fair value through profit or loss
Opening balance
—
—
Acquisition of a subsidiary
14,884
—
Disposals
(328)
—
Change in fair value
1,237
—
Closing balance
15,793
—
A reconciliation of Level 3 fair values for financial assets is set out in the table below:
All figures in € 000
Dec-24
Dec-23
Level 3 financial assets at fair value through profit or loss
Opening balance
935,674
868,437
Acquisition of a subsidiary
586,078
—
Additions
479,445
114,131
Disposals
(327,407)
(128,016)
Change in fair value
198,631
81,428
Foreign exchange movements
2,318
(306)
Closing balance
1,874,739
935,674
On 30 April 2024, the Group acquired control of CVC Investment Strategic Opportunities II L.P. Prior to
the acquisition, the Group recognised its investment in CVC Investment Strategic Opportunities II L.P. as
a Level 3 financial asset at fair value through profit or loss as the inputs were not observable. Subsequent
to the acquisition the entity is consolidated on a line-by-line basis by the Group. Certain of the investments
held by the entity are recorded as Level 2 financial assets at fair value through profit or loss. Refer to note 5
for further details.
Fair value sensitivities
The following table summarises the inputs and estimates used for items categorised in Level 2 and Level 3 of
the fair value hierarchy together with a quantitative sensitivity analysis. The sensitivity analysis in respect of the
private equity assets has been calculated by applying a 10% increase and a 10% decrease to the unobservable
inputs used in the valuation of each relevant portfolio company. The Group has determined that this sensitivity
is reasonably possible and would result in a material change to the fair value of the portfolio of private equity
assets held.
The sensitivity analysis in respect of the CLO investments can be categorised into two approaches, firstly for
the CLO rated notes and secondly for CLO equity tranches. For CLO rated notes with contractual cash flows
and redemption at par, model parameter sensitivity is less impactful on fair value. As a result, a price flexing
approach has been taken to demonstrate possible fair value sensitivities, applying an increase of 5% and a
decrease of 10% of the current fair value. An asymmetric sensitivity has been utilised as this is considered to
more appropriately represent the potential market pricing dynamics, of a performing fixed income security,
where markets are more sensitive to downside factors.
The sensitivity analysis in respect of CLO equity tranches utilises a model-based approach, flexing model
parameters to generate a possible upside and downside presentation of fair value. The Group determined
that flexing the following model parameters would result in representative fair value scenarios; discount rate
applied to future cash flows; constant default rates; and liquidation price. The sensitivity outcomes have been
aggregated for all CLO investments, covering rated notes and equity tranches.
The sensitivity analysis in respect of investments in credit vehicles, infrastructure investments and secondaries
investments has been calculated by applying a 10% increase and a 10% decrease to the net asset value.
The Group has determined that this sensitivity is reasonably possible.
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CVC Capital Partners plc Annual Report 2024
27. Financial risk management (continued)
Financial assets at fair value through profit or loss as at 31 December 2024:
Fair value as at 31
December 2024 Primary valuation Weighted average/Fair Effect on fair value
€ m
technique
Key unobservable inputs
Range
value inputs
Sensitivity scenarios
€ m
Multiple based
Private equity
1,585
valuation
Earnings multiple
7.2 - 25.5x
14.1x
10%
237
P/E
8.6 - 8.6x
8.6x
(10%)
(237)
Revenue
1.7 - 14.5x
10.0x
Book value
0.7 - 1.8x
1.1x
CLO investments
96
Discounted CF
Equity tranches
Discount rate
13-15%
14 %
(1%)
Upside scenario fair value:
Constant default rate
1-3%
2 %
1%
6
Liquidation price
98.50%
—
97.5% / (99.5%)
Rated notes
+5% Valuation
Downside scenario fair value:
(10%) Valuation
(10)
Investment in credit
152
Net asset value
n/a
n/a
n/a
10%
15
vehicles
(10%)
(15)
Infrastructure investments
51
Net asset value
n/a
n/a
n/a
10%
5
(10%)
(5)
Secondary investments
6
Net asset value
n/a
n/a
n/a
10%
1
(10%)
(1)
Financial assets at fair value through profit or loss as at 31 December 2023:
Fair value as at 31
December 2023 Primary valuation Weighted average/Fair Effect on fair value
€ m
technique
Key unobservable inputs
Range
value inputs
Sensitivity scenarios
€ m
Multiple based
Private equity
834
valuation
Earnings multiple
6.0 - 31.7x
13.4x
10%
118
P/E
7.7 - 7.9x
7.8x
(10%)
(118)
Revenue
3.3 - 15.7x
9.4x
Book value
0.5 - 1.6x
1.1x
Investment in credit
97
Net asset value
n/a
n/a
n/a
10%
10
vehicles
(10%)
(10)
Not included in the above sensitivity is €5.4m related to CLO investments.
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CVC Capital Partners plc Annual Report 2024
27. Financial risk management (continued)
Forward liability
The forward liability is categorised as a Level 3 financial liability. The key assumptions made in the estimation of the forward liability are disclosed in note 3. The table below details the reasonably possible changes in
assumptions used by management in the valuation model which could arise at each respective balance sheet date, and the aggregate impact these would have on the valuation at each date. These changes have been
modelled in combination, as management have concluded that changes in the estimate would not be likely to happen in isolation. The forward liability will be settled through the issue of shares of CVC Capital Partners plc.
Assumption relevant for the valuation at 31 December 2024
€ m
Change in assumption
Range of forward liability values
CVC DIF MFE
+/-10% fundraising target
€545m
MFE multiple
+/-20% MFE Multiple,reflecting a reasonably possible range of CVC MFE multiples based on an assessment of similar
to
market transactions €1,086m
Discount rate
+/- 10% increase/decrease to the discount rate
Assumption relevant for the valuation at 31 December 2023
€ m
Change in assumption
Range of forward liability values
Probability weighting assigned to IPO occurring
+/- 10% probability
CVC Secondaries MFE used in IPO model / SOF VI fundraising
+/- 10% SOF VI fundraising target
€467m
MFE multiple
+/- 20% MFE Multiple, reflecting a reasonably possible range of CVC MFE multiples based on an assessment of similar
to
market transactions. €760m
Discount rate
+/- 10% increase/decrease to the discount rate
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
28. Capital management
The primary objectives of the Group’s capital management strategy are to effectively manage returns to
shareholders and ensure adequate capital is available in order to conduct the Group’s principal activities. To
meet this objective the Group manages its contracted management fees, which primarily generates cash on a
quarterly or half-yearly basis in advance (with the exception of Credit which is quarterly in arrears), against its
investment commitments. Any short-term funding requirements are managed by the Group through its RCF.
In addition, the dividend policy is assessed when distributions are made to appropriately reflect any change.
Under Part 17 of the Companies (Jersey) Law 1991, distributions may be debited to any profit or capital account
of the Parent Company. Distributions of €299m in the year ended 31 December 2024 and €702.4m in the year
ended 31 December 2023 have resulted in accumulated losses on its consolidated statement of financial
position, however, the overall equity position of the Group remains strong with total equity attributable to
equity holders of the parent of €985.7m as at 31 December 2024.
The private placement notes and RCF are subject to financial covenants in the form of a leverage ratio and a
minimum AUM amount which is tested on a bi-annual basis. The Group is also subject to certain regulatory
capital requirements. During the current and prior periods the Group was fully compliant with regulatory
capital requirements and banking covenants. Refer to note 21 for further details.
29. Equity
(a) Stated capital
The Company’s issued ordinary share capital as at 31 December 2024 comprised of a single class of
1,062,984,492 ordinary shares of no nominal value (‘Shares’) listed on Euronext Amsterdam. The rights and
obligations attaching to the Shares are contained within the Company’s Articles of Association. Under the
Articles of Association, all rights and obligations attaching to the Shares are held by Euroclear Nederland and
will, to the extent legally permissible, accrue to, be exercisable by and against, and be enforced by and
against, the relevant holder of an interest in the Shares traded and settled through Euroclear Nederland
(excluding, for the avoidance of doubt, Euroclear Nederland) (such holder, being an ‘EI Holder’).
Each Share confers its holder the right to cast one vote at the Company’s general meeting of Shareholders.
There are no restrictions on voting rights. The Shares carry dividend rights. The Articles of Association provide
for pre-emption rights to be granted to Shareholders, subject to certain exceptions and unless such rights are
disapplied by a special resolution of Shareholders.
The Shares do not carry any rights in respect of capital to participate in a distribution (including on a winding-
up) other than those that exist as a matter of law or under the Articles of Association. The Shares will rank pari
passu in all respects. Holders of Shares who the Company believes are or may be subject to relevant sanctions
are not permitted to dispose of their Shares or any legal or beneficial interest in any of them without the prior
written consent of the Company. There are otherwise no restrictions on the transferability of the Shares in the
Articles of Association or under Jersey law. There is no limit on the number of shares of any class which the
Company is authorised to issue.
During the year ended 31 December 2024 the following transactions are reflected within stated capital in the
consolidated statement of changes in equity:
Ordinary shares Stated capital
Ordinary shares (No.) (€ 000)
As at 1 January 2024
2,500,000
2,500
Shares split
979,642,857
—
Shares issued
17,857,143
250,000
Acquisitions
62,984,492
1,648,459
Capitalised share issuance costs
—
(1,583)
Capital reduction
—
(876,957)
As at 31 December 2024
1,062,984,492
1,022,419
Ordinary shares Stated capital
Ordinary shares (No.) (€ 000)
As at 1 January 2023
1,250,000
1,250
Shares issued
1,250,000
1,250
As at 31 December 2023
2,500,000
2,500
Shares split
On 29 April 2024, 2,500,000 ordinary shares of no par value were subdivided into 979,642,857 ordinary shares
with no par value.
Shares issued
On 30 April 2024, as part of the Company’s listing on Euronext Amsterdam, 17,857,143 new shares of the
Company were issued.
Acquisitions
The Group completed the following acquisitions in the year ended 31 December 2024. Refer to note 5 for
further details:
– on 1 January 2024, the Group acquired the Advisory Group. As part of the acquisition, the Group recognised
a capital contribution of €110m, which reflects the acquisition-date fair value of the Company’s interest in
the Advisory Group. On 29 April 2024, non-controlling interests of CVC Capital Partners Advisory Holdings
Limited, CVC Advisory Partners India Holdings Limited, CVC Capital Partners Advisory Holdings II Limited, and
CVC Advisory Partners India Holdings II Limited, as well as a loan note of €141.3m issued by CVC Capital
Partners Advisory Holdings Limited were cancelled and recognised as a capital contribution;
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CVC Capital Partners plc Annual Report 2024
29. Equity (continued)
– on 15 April 2024, the Group acquired CVC Credit. As part of the acquisition, the Group recognised a capital
contribution of €392.4m, which reflects the acquisition-date fair value of the acquired interest in CVC Credit;
– as part of the acquisition of Private Investment Asia V GP Limited, Private Investment Asia V Feeder GP
Limited, Private Investment Europe VIII GP Limited, Private Investment Europe VII GP Limited, Private
Investment Strategic Opportunities II GP Limited and Private Investment Growth II GP Limited on 29 April
2024, CVC Capital Partners Strategic Opportunities II Limited on 30 April 2024, and CVC Capital Partners VII
Limited on 6 June 2024, the Group recognised a capital contribution of €3.8m, which reflects the
acquisition-date fair value of the Company’s interest in these entities;
– on 10 May 2024, under the terms of the share purchase agreement with respect to CVC Secondaries, 20%
of the remaining 40% interest in CVC Secondaries was acquired by the Group for consideration of €362.7m,
settled in cash and shares. Of the total consideration, €357.5m was settled through the issue of 25,536,048
ordinary shares of the Group. On 2 July 2024 the Group acquired the final 20% interest in CVC Secondaries
for consideration of €442.3m, settled in cash and shares. Of the total consideration, €438.7m was settled
through the issue of a further 25,536,048 ordinary shares of the Group; and
– on 1 July 2024, the Group acquired 60% of CVC DIF for consideration of €590.1m. Included in the total
consideration was the issuance of 11,402,873 shares of the Group valued at €195.9m at the time of the
issuance. At the same time the Group acquired preference shares from the CVC DIF selling shareholders.
The consideration for the preference shares was €25.7m which included 509,523 of shares valued at €8.8m.
Capitalised share issuance costs
Capitalised share issuance costs comprise transaction costs of €1.2m attributable to the equity issuance
related to the Company’s listing on Euronext Amsterdam, €0.4m attributable to the equity issuance related
to the acquisition of the remaining 40% interest in CVC Secondaries, and €0.1m attributable to the equity
issuance related to the initial acquisition of DIF.
Capital reduction
On 8 May 2024, the Group reduced its stated capital to €20m by means of a capital reduction, as permitted
by Jersey Companies law. The capital reduction is reflected through a reduction in stated capital of €877m
with a commensurate increase in retained earnings.
Other
Shares of CVC Capital Partners plc held by management shareholders at the time of IPO are subject to leaver
provisions which have certain vesting conditions. These conditions require all or certain of such unvested shares
to be transferred if employment is terminated. As at 31 December 2024, €1.9m of shares have been transferred
and are held on account of the Company by a related party entity (Dec-23: nil). The shares held on account
entitle the Group to dividends but have no voting rights.
(b) Other reserves
Under the terms of the share purchase agreement with respect to CVC Secondaries, the Group acquired 60%
of CVC Secondaries at the initial acquisition (completed 11 January 2022) and agreed to acquire the remaining
40% interest across two later acquisition tranches. Under IFRS, the Group is required to record a financial
liability in respect of the obligation to acquire the remaining 40% interest. The obligation was valued at
€314.3m at the initial acquisition date and was recorded as a reduction in other reserves on the grounds that
the remaining interest would be settled by the issuance of shares of the Group. On 10 May 2024, the Group
acquired 20% of the remaining 40% interest in CVC Secondaries, increasing its ownership interest to 80%.
On 2 July 2024, the Group acquired the remaining 20% interest in CVC Secondaries, increasing its ownership
interest to 100%. As a result of these acquisitions, the initial reduction of €314.3m to other reserves was
reversed. Refer to notes 5 and 22 for further details.
Under the terms of the share purchase agreement with respect to CVC DIF, the Group acquired 60% of CVC
DIF at the initial acquisition (completed 1 July 2024) and agreed to acquire the remaining 40% interest across
two later acquisition tranches. The Group recorded a financial liability in respect of the obligation to acquire
the remaining 40% interest. The obligation was valued at €537.3m at the initial acquisition date and was
recorded as a reduction in other reserves on the grounds that the remaining interest would be settled by the
issuance of shares of the Group. At the same time the Group created the CVC DIF ESOP which is an equity-
settled share-based payment plan. For the year ended 31 December 2024, €1.2m (Dec-23: nil) was recognised
in personnel expenses together with a corresponding increase in other reserves, relating to employee services
received during the year. Refer to notes 5, 8 and 22 for further details.
Under the Group’s LTIP, options were granted to senior executives of the Company on 16 December 2024,
including members of key management personnel. The Group accounts for the LTIP as an equity-settled plan
in line with IFRS 2 and, for the year ended 31 December 2024, €2.1m (Dec-23: nil) was recognised in personnel
expenses together with a corresponding increase in other reserves, relating to employee services received
during the year. Additionally, 687,442 shares have been reserved for issue under the Group’s LTIP as at
31 December 2024 (Dec-23: nil). Refer to note 8 for further information.
Other reserves also include an amount of €80.8m arising from the Pre-IPO Reorganisation. This amount is the
difference between the consideration transferred and the net assets acquired. Additionally, during the year
ended 31 December 2023 MHII declared and paid capital distributions of €219.8m to Vision Management
Holdings Limited (MHL), which was its parent and a related party at the time of the distribution. This capital
contribution has been recorded within other reserves. Refer to note 4 for further details.
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CVC Capital Partners plc Annual Report 2024
29. Equity (continued)
(c) Accumulated losses
The Group through its subsidiary made a commitment to co-invest alongside CVC Capital Partners VIII (A) L.P.
The commitment made was €375m of which €150m was disposed of on 8 February 2023.
Following the sale, the Group continues to consolidate CVC Capital Partners Investment Europe VIII L.P. and
recognises non-controlling interests of 40%.
Below is a schedule of the interest sold:
All figures in € 000
Dec-23
Cash transferred in by non-controlling interest holders
47,025
Loans receivable issued to non-controlling interest holders
35,933
Carrying value of interest transferred
(91,281)
Difference recognised in accumulated losses
(8,323)
Cash transferred in by non-controlling interest holders is recognised as a financing activity in the consolidated
statement of cash flows as this is an equity transaction.
(d) Dividends and other distributions
The Board has recommended a dividend of €225m, to be paid in June 2025, to shareholders on the register as
at 23 May 2025. CVC Capital Partners plc did not declare or pay dividends to equity shareholders of the Group
during the year ended 31 December 2024 (Dec-23: nil).
Included in other distributions of €299m for the year ended 31 December 2024 are €297.1m of distributions
which MHII declared and paid to MHL, its parent and a related party at the time of the distribution.
During the year ended 31 December 2023, the following other distributions were paid:
– MHII declared and paid distributions of €583.8m to MHL, which was its parent and a related party at the
time of the distributions; and
– subsidiaries of the Group paid distributions of €51m to Vision Fund Holdings Limited and €62.3m to Vision
Finance Limited, subsidiaries of MHL and the subsidiaries’ parent and a related party at the time of the
distributions; and
– the Group paid contributions to Fund VI and Fund VII of €5.2m prior to transferring the limited partnership
interests and carried interest entitlements to RemainCo 2 Limited.
As these distributions were not made to the equity shareholders of the Company and arose from applying the
merger accounting method, they have been recorded as other distributions within the consolidated statement
of changes in equity. Please refer to note 4 for further information on the Group reorganisation.
During the year ended 31 December 2024, distributions of €126.9m (Dec-23: €25.5m) were paid to non-
controlling interests of the Group. Of this, €1.3m (Dec-23: nil) was paid to non-controlling interests held in CVC
Advisers Latam Representação e Consultoria. This non-controlling interest is owned by several employees of
CVC Advisers Latam Representação e Consultoria who are entitled to a profit share awarded to them by
distributions. The distributions, which can be non-pro rata, are principally funded by the Group, and are agreed
by the Group prior to any distribution. These are recorded as a transfer between shareholders in the
consolidated statement of changes in equity.
(e) Other contributions
During the year ended 31 December 2024, the following other contributions were received:
– the Group, through its subsidiary MHII and its controlled undertakings, received a distribution of €280m in
the year ended 31 December 2024 from carried interest entities. Of the amount received, €140m has been
treated as a contribution from MHL, the parent and a related party of MHII at the time of the distribution;
– the Group received contributions of €7.7m from the SIF, related to the acquisition of CVC DIF. Refer to note 5
for further details;
– as part of the acquisition of CVC DIF the Group became liable to a SAR provision which, per the share
purchase agreement, is refundable by the CVC DIF selling shareholders. During the year €5.3m was
receivable from the CVC DIF selling shareholders, of which €3.2m has been recorded as an other
contribution to the parent and €2.1m to non-controlling interests. This contribution had no impact on the
Group’s cash; and
– other contributions of €51.9m were received from non-controlling interests.
During the year ended 31 December 2023, the following other contributions were received:
– CVC Capital Partners Asia III Limited received a capital contribution of €2.3m from Vision Fund Holdings
Limited, its parent and a related party at the time of the contribution; and
– the Group received distributions from Fund VI and Fund VII of €270.6m prior to transferring the limited
partnership interests and carried interest entitlements to RemainCo 2 Limited, and also reflected the net
effects of contracts related to services required by the general partners acquired in the Group reorganisation
of €46.2m.
As these contributions were not made by the equity shareholders of the Company they have been recorded as
other contributions within the consolidated statement of changes in equity. Please refer to note 4 for further
information on the Group reorganisation.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
29. Equity (continued)
(f) Non-controlling interests
Non-controlling interest Accumulated balances of non- Profit/(loss) allocated to non-
percentage controlling interests (€ 000) controlling interests (€ 000)
All figures in € 000
Dec-24
Dec-23
Dec-24
Dec-23
Dec-24
Dec-23
CVC Secondaries
—
40%
—
91,521
2,420
14,547
CVC DIF
40%
—
212,677
—
(2,118)
—
CVC Capital Partners Investment Europe VII L.P.
69%
—
347,368
—
47,076
—
CVC Capital Partners Investment Europe VIII L.P.
40%
40%
164,392
117,346
16,493
5,131
Advisory Foundation entities:
CVC Advisers Latam Representação e Consultoria Ltda
4%
—
44
—
105
—
CVC Capital Partners Advisory Holdings Limited
—
—
—
—
(162)
—
CVC Advisory Partners India Holdings Limited
—
—
—
—
(1)
—
CVC Capital Partners Advisory Holdings II Limited
—
—
—
—
3,385
—
CVC Advisory Partners India Holdings II Limited
—
—
—
—
233
—
Other non-material non-controlling interests:
CVC Capital Partners Investment Growth II L.P.
76%
76%
9,078
7,284
53
933
CVC Investment Strategic Opportunities II L.P.
30%
—
52,014
—
5,810
—
CVC Credit Partners Investment Holdings Limited
50%
52%
1,699
2,240
4,595
1,610
CVC Credit Partners Investment Holdings II Limited
62%
—
26,055
—
3,457
—
CVC SOF VI Associates (Feeder), SCSp
70%
—
4,657
—
1,475
—
Total other non-material non-controlling interests
93,503
9,524
15,390
2,543
Total
817,984
218,391
82,821
22,221
– The Group’s ownership of CVC Secondaries was increased from 60% to 80% on 10 May 2024, and to 100%
on 2 July 2024. Refer to note 5 for further details.
– CVC Capital Partners Advisory Holdings Limited, CVC Advisory Partners India Holdings Limited, CVC Capital
Partners Advisory Holdings II Limited, and CVC Advisory Partners India Holdings II Limited were acquired by
the Group on 1 January 2024. At the time of acquisition CVC Capital Partners Advisory Holdings Limited,
and CVC Advisory Partners India Holdings Limited had a 9.9% non-controlling interest and CVC Capital
Partners Advisory Holdings II Limited, and CVC Advisory Partners India Holdings II Limited had a 25.85%
non-controlling interest. These non-controlling interests were acquired by the Group on 29 April 2024. Refer
to note 5 for further details.
– CVC Credit Partners Investment Holdings II Limited was acquired by the Group on 15 April 2024, CVC
Investment Strategic Opportunities II L.P. became controlled by the Group on 30 April 2024 and CVC Capital
Partners Investment Europe VII L.P. became controlled by the Group on 6 June 2024. Refer to note 5 for
further details.
– CVC SOF VI Associates (Feeder), SCSp was formed on 22 January 2024. The Group is considered to control
the entity following the Group’s commitment to invest during the year. Refer to note 5 for further details.
– The Group acquired 60% of CVC DIF on 1 July 2024. Refer to note 5 for further details.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
29. Equity (continued)
The summarised financial information of these subsidiaries is provided below. This information is based on amounts before inter-company eliminations. Immaterial non-controlling interests have been aggregated:
Summarised statement of profit or loss and comprehensive income for the year ended 31 December 2024:
CVC Capital Partners CVC Capital Partners Other non-material
Investment Europe Investment Europe non-controlling
All figures in € 000
CVC Secondaries
CVC DIF
VII L.P.
VIII L.P.
Advisory Foundation
interests
Total
Management fees
94,994
89,561
—
—
352
—
184,907
Investment income
—
—
68,875
44,241
—
33,435
146,551
Advisory fee income
—
—
—
—
428,000
—
428,000
Other operating income
224
(16)
—
—
11,008
153
11,369
Total revenue
95,218
89,545
68,875
44,241
439,360
33,588
770,827
Personnel expenses
(36,132)
(41,048)
—
—
(255,113)
—
(332,293)
General and administrative expenses
(9,315)
(10,916)
—
—
(85,696)
8
(105,919)
Foreign exchange gains/(losses)
(298)
(340)
—
—
2,637
3
2,002
Expenses with respect to investment vehicles
—
—
(165)
(1,413)
—
(1,146)
(2,724)
EBITDA
49,473
37,241
68,710
42,828
101,188
32,453
331,893
Depreciation and amortisation
(26,230)
(41,501)
—
—
(28,436)
—
(96,167)
Total operating profit
23,243
(4,260)
68,710
42,828
72,752
32,453
235,726
Finance income
884
713
70
45
5,123
37
6,872
Finance expense
(293)
(839)
(437)
(1,641)
(6,036)
(647)
(9,893)
Profit/(loss) before tax
23,834
(4,386)
68,343
41,232
71,839
31,843
232,705
Income tax
1,342
(911)
—
—
(10,519)
—
(10,088)
Profit/(loss) for the year
25,176
(5,297)
68,343
41,232
61,320
31,843
222,617
Exchange differences on translation of foreign operations
17,320
65
—
—
3,135
1,103
21,623
Total comprehensive income/(loss)
42,496
(5,232)
68,343
41,232
64,455
32,946
244,240
Total profit/(loss) attributable to non-controlling interests
2,420
(2,118)
47,076
16,493
3,560
15,390
82,821
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
29. Equity (continued)
Summarised statement of profit or loss and comprehensive income for the year ended 31 December 2023
CVC Capital Partners Other non-material
Investment Europe non-controlling
All figures in € 000
CVC Secondaries
VIII L.P.
interests
Total
Management fees
99,121
—
—
99,121
Investment income
—
15,768
(533)
15,235
Total revenue
99,121
15,768
(533)
114,356
Personnel expenses
(29,217)
—
—
(29,217)
General and administrative expenses
(10,610)
—
—
(10,610)
Foreign exchange gains
162
—
—
162
Expenses with respect to investment vehicles
—
(270)
(13)
(283)
EBITDA
59,456
15,498
(546)
74,408
Depreciation and amortisation
(24,087)
—
—
(24,087)
Total operating profit/(loss)
35,369
15,498
(546)
50,321
Finance income
1,017
40
(4)
1,053
Finance expense
(19)
(2,710)
(51)
(2,780)
Profit/(loss) before tax
36,367
12,828
(601)
48,594
Income tax
—
—
—
—
Profit/(loss) for the year
36,367
12,828
(601)
48,594
Exchange differences on translation of foreign operations
(1,839)
—
320
(1,519)
Total comprehensive income/(loss)
34,528
12,828
(281)
47,075
Total profit attributable to non-controlling interests
14,547
5,131
2,543
22,221
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
29. Equity (continued)
Summarised statement of accumulated balances as at 31 December 2024
CVC Capital Partners CVC Capital Partners Other non-material
Investment Europe Investment Europe non-controlling
All figures in € 000
CVC Secondaries
CVC DIF
VII L.P.
VIII L.P.
Advisory Foundation
interests
Total
As at 1 January 2024
91,521
—
—
117,346
—
9,524
218,391
Profit/(loss) for the period
2,420
(2,118)
47,076
16,493
3,560
15,390
82,821
Movement in currency reserve
1,773
132
—
—
461
1,015
3,381
Total comprehensive income/(loss)
4,193
(1,986)
47,076
16,493
4,021
16,405
86,202
Acquisitions
(88,949)
216,590
385,029
—
(3,929)
76,323
585,064
Other distributions
(7,534)
(4,000)
(95,827)
(1,401)
(1,309)
(16,804)
(126,875)
Other contributions
769
2,073
11,090
31,954
—
8,055
53,941
Transfers between shareholders
—
—
—
—
1,261
—
1,261
As at 31 December 2024
—
212,677
347,368
164,392
44
93,503
817,984
Summarised statement of accumulated balances as at 31 December 2023
CVC Capital Partners Other non-material
Investment Europe non-controlling
All figures in € 000
CVC Secondaries
VIII L.P.
interests
Total
As at 1 January 2023
101,493
—
9,237
110,730
Profit for the period
14,547
5,131
2,543
22,221
Movement in currency reserve
(2,291)
—
112
(2,179)
Total comprehensive income
12,256
5,131
2,655
20,042
Divestment of interest in subsidiary
—
91,281
—
91,281
Other distributions
(22,228)
(866)
(2,368)
(25,462)
Other contributions
—
21,800
—
21,800
As at 31 December 2023
91,521
117,346
9,524
218,391
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
30. Cash flow information
Cash generated from operations is as follows:
All figures in € 000
Dec-24
Dec-23
Profit before income tax
308,466
312,483
Adjustments to reconcile profit before tax to net
cash flows:
Depreciation and amortisation
125,033
25,991
Finance income
(12,878)
(10,788)
Finance expense
53,035
31,251
Carried interest and performance fees
(173,170)
(163,170)
Investment income
(199,868)
(81,428)
Change in valuation of forward liability
463,305
84,825
Other
6,554
(5,272)
Movements in working capital:
262,011
(118,591)
(Increase)/decrease in trade and other receivables
(75,049)
2,226
Increase in trade and other payables
100,284
38,691
Cash generated from operations
595,712
234,809
31. Commitments
The Group’s undrawn capital commitments to investment funds and credit vehicles are shown in the table below.
Capital commitments to investment funds include commitments of consolidated structured entities which are
partially committed by non-controlling interests in the consolidated structured entities. Capital commitments
are called over time, typically between one to five years following the subscription of the commitment.
Capital commitments to credit vehicles are called over time, typically up to five years following the
subscription of the commitment.
The Group does not have an obligation to pay cash until the capital is called. The Group is able to meet these
undrawn commitments through a combination of available resources and undrawn commitments from non-
controlling interest holders. A reconciliation of the Group’s undrawn capital commitments is provided below:
Dec-24
All figures in € 000
Private Equity
Secondaries
Credit
Infrastructure
Total
Total Group commitments
1,169,762
218,930
334,517
52,272
1,775,481
Co-investment
commitments from NCI
(66,747)
(152,681)
—
—
(219,428)
Net Group commitments
1,103,015
66,249
334,517
52,272
1,556,053
Dec-23
All figures in € 000
Private Equity
Secondaries
Credit
Infrastructure
Total
Total Group commitments
1,308,878
—
57,270
—
1,366,148
Co-investment
commitments from NCI
(92,301)
—
—
—
(92,301)
Net Group commitments
1,216,577
—
57,270
—
1,273,847
The Group’s undrawn capital commitments include amounts expected to be transferred to associates
and staff plan partnerships. Based on previous funds, the amounts of these transfers will be approximately
€693.7m. Additional commitments of €223.5m are expected to be transferred to CVC-PE. Of this,
commitments of €138.5m have been sold as at the date of this publication. Refer to note 35 for further details.
Included in management fees are fees earned for acting as an underwriter or placement agent in offerings or
placements of debt and/or equity financing. As a result of these activities the Group, at times, has outstanding
commitments. As at 31 December 2024 the value of outstanding commitments was nil (Dec-23: nil).
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
32. Related party transactions
(a) Key management compensation
The KMP of the Group after 30 April 2024 are considered to be the directors of the Company and executive
management. For the period ended 30 April 2024, the KMP of the Group was considered to be the directors
of MHII and of MHII’s ultimate parent, the SIF. The compensation paid or payable to KMP is as follows:
All figures in € 000
Dec-24
Dec-23
Salaries, bonuses, and other short-term benefits
16,499
8,856
Post-employment benefits
1,737
225
Share-based payments
2,097
—
Total key management compensation
20,333
9,081
(b) Transactions with KMP
As at 31 December 2024 the Group has two loans receivable from KMP totalling €16.2m (Dec-23: €15.9m)
included in non-current loans receivable.
During the year ended 31 December 2024 the Group received proceeds of €1.1m from key management
personnel for the purchase of shares of CVC Capital Partners plc.
(c) Transactions with entities controlled or jointly controlled by KMP
During the year ended 31 December 2024 the Group incurred general and administrative expenses of €0.02m
(Dec-23: €0.2m) related to services received from entities controlled or jointly controlled by KMP.
(d) Transactions with the SIF
Until 30 April 2024 the SIF was the Group’s controlling parent. During the year the Group entered into
transactions, in the ordinary course of business, with the SIF and entities within the SIF group. Transactions
which were entered into, and trading balances outstanding are as follows:
All figures in € 000
Dec-24
Dec-23
Fees received
122,320
240,767
Fees paid
(8,995)
—
All figures in € 000
Dec-24
Dec-23
Amounts receivable
17,650
7,491
Amounts payable
(12,929)
(9,638)
Fees received primarily include management fees received from Retained GPs, as well as amounts earned by
the Group for the provision of certain support services, including payroll and IT related services.
Fees paid and €6.7m of amounts payable are general and administrative fees and trade and other payables
related to advisory fees paid to CVC Advisers (Benelux) SA/NV for the provision of advice on investment
opportunities. CVC Advisers (Benelux) SA/NV was acquired by the Group on 1 January 2024, and then
subsequently disposed of on 15 April 2024. This disposal was accounted for as a disposal under common
control. Refer to note 4 for further details.
Amounts receivable primarily include management fees receivable. Included in amounts receivable is also
a €9.2m working capital loan facility which is secured, interest free and repayable in 2027. Amounts payable
include a corresponding €6.3m working capital facility held by the Group, which has the same terms.
This facility is recognised by the Group within borrowings.
The Group also has €1.9m of shares held by the SIF on its account as at 31 December 2024 (Dec-23: nil), and
received various contributions from/made various distributions to the SIF during the years ended 31 December
2024 and 2023. Refer to note 29 for further details on these transactions.
Additionally, the Group provides the use of its payroll functionality to facilitate the payment of certain awards
on behalf of the SIF. All amounts are recharged back to the SIF, resulting in no impact on the Group’s
consolidated statement of profit or loss.
(e) Transactions with other related parties
Until its acquisition on 15 April 2024 CVC Credit was a related party of the Group. The Group purchased shared
services primarily relating to investor relations and also subscribed for certain preference shares of CVC Credit,
providing exposure to its investment vehicles. Refer to note 5 for further details on the acquisition. Transactions
entered into, and trading balances outstanding are as follows:
All figures in € 000
Dec-24
Dec-23
Fees received from other related parties
958
2,139
Fees paid to other related parties
(6,590)
(23,161)
Investment income from other related parties
2,494
3,039
All figures in € 000
Dec-24
Dec-23
Amounts receivable from other related parties
—
2,139
Amounts payable to other related parties
—
(1,788)
Financial assets at fair value through profit or loss held in other related parties
—
36,228
(f) Transactions with unconsolidated structured entities
Unconsolidated structured entities are primarily investment vehicles managed by the Group. Refer to note 34
for details on the Group’s exposure to unconsolidated structured entities.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
Until 30 April 2024 the Group’s ultimate parent and controlling party was the SIF. As a result of the Group’s listing on Euronext Amsterdam, the Group has no ultimate controlling parent.
(a) Subsidiaries
The following material entities are subsidiaries of the Company as at 31 December 2024 and are consolidated within the consolidated financial statements:
Company Name
Percentage
Country of incorporation
Holding
Principal activity
CVC Management Holdings II Limited
100%
Jersey
Ordinary
Holding company
CVC Credit Partners Investment Holdings Limited
50%
Jersey
Ordinary
Holding company
CVC Green Holdings Limited
100%
Jersey
Ordinary
Holding company
Capital Investors Europe PBI Limited
100%
Jersey
Ordinary
Holding company
CVC 2020
Investments Holdings Limited
100%
Jersey
Ordinary
Holding company
CVC 2020
Investments Limited
100%
Jersey
Ordinary
Director services
CVC Credit Investments Limited
100%
Jersey
Ordinary
Director services
CVC Capital Partners Fund Holdings II Limited
100%
Jersey
Ordinary
Operational company
CVC Capital Partners VIII Limited
100%
Jersey
Ordinary
General Partner
CVC Capital Partners VI Limited
100%
Jersey
Ordinary
General Partner
MS Co-Investment Platform GP Limited 100%
Jersey
Ordinary
General Partner
CVC Capital Partners Group Services Limited 100%
Jersey
Ordinary
Corporate services
CVC European Equity V Limited
100%
Jersey
Ordinary
General Partner
CVC Capital Partners Strategic Opportunities GP A Limited
100%
Jersey
Ordinary
General Partner
CVC Growth Partners GP Limited
100%
Jersey
Ordinary
General Partner
CVC Growth Partners II GP Limited
100%
Jersey
Ordinary
General Partner
CVC Capital Partners Asia III Limited
100%
Jersey
Ordinary
General Partner
CVC Europe Fund Management Sàrl
100%
Luxembourg
Ordinary
Fund management
CVC Capital Partners Asia VI Limited
100%
Jersey
Ordinary
General Partner
CVC Capital Partners Strategic Opportunities III Limited
100%
Jersey
Ordinary
General Partner
CVC Capital Partners IX Limited
100%
Jersey
Ordinary
General Partner
CVC Capital Partners IX Sàrl
100%
Luxembourg
Ordinary
General Partner
CVC Services Holdings Sàrl
100%
Luxembourg
Ordinary
Director services
Glendower Capital (Holdings) Ltd
100%
Cayman
Ordinary
Fund management
CVC Secondary Partners, LLP (formerly known as Glendower Capital LLP)
100%
United Kingdom
Ordinary
Fund management
Glendower Capital (U.S.), LP
100%
Cayman
Ordinary
Fund management
Glendower Capital US LLC
100%
United States
Ordinary
Fund management
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Notes to the Consolidated Financial Statements continued
33. Group information
CVC Capital Partners plc Annual Report 2024
The following companies were incorporated during the year ended 31 December 2024:
Company Name
Date of incorporation
Percentage ownership
Country of incorporation
Holding
Principal activity
CVC PES Master GP Sàrl 28 September 2024
100%
Luxembourg
Ordinary
General Partner
CVC Private Credit Fund (WH) Sàrl 25 January 2024
100%
Luxembourg
Ordinary
Holding company
CVC Luxembourg Properties Sàrl 30 April 2024
100%
Luxembourg
Ordinary
Administration services
CVC Capital Partners Pachelbel Limited
6 March 2024
100%
Jersey
Ordinary
Holding company
Company Name
Date of acquisition
Percentage ownership
Country of incorporation
Holding
Principal activity
CVC Capital Partners Advisory Group Holding Foundation
1 January 2024
100%
Jersey
Ordinary
Holding company
CVC Capital Partners Advisory Holdings Limited
1 January 2024
100%
Jersey
Ordinary
Holding company
CVC Capital Partners Advisory Holdings II Limited
1 January 2024
100%
Jersey
Ordinary
Holding company
CVC Advisers (Luxembourg) Sàrl
1 January 2024
100%
Luxembourg
Ordinary
Investment advisory
CVC Advisers South Africa Proprietary Limited
1 January 2024
100%
South Africa
Ordinary
Administration services
CVC Advisers Greece Single Member Societe Anonyme
1 January 2024
100%
Greece
Ordinary
Investment advisory
CVC Advisers Private Equity Limited
1 January 2024
100%
Jersey
Ordinary
Holding company
CVC Advisers Holdings Limited
1 January 2024
100%
Jersey
Ordinary
Investment advisory
CVC Advisers Limited
1 January 2024
100%
United Kingdom
Ordinary
Investment advisory
CVC Asia Pacific Limited
1 January 2024
100%
Hong Kong
Ordinary
Investment advisory
CVC Asia Pacific (Japan) Kabushiki Kaisha
1 January 2024
100%
Japan
Ordinary
Investment advisory
CVC Asia Pacific (Singapore) Pte. Ltd.
1 January 2024
100%
Singapore
Ordinary
Investment advisory
CVC Asia Pacific (Shanghai) Limited
1 January 2024
100%
PRC
Ordinary
Investment advisory
CVC Asia Pacific (Australia) Pty Ltd
1 January 2024
100%
Australia
Ordinary
Investment advisory
CVC Advisers (Deutschland) GmbH
1 January 2024
100%
Germany
Ordinary
Investment advisory
CVC Advisers (France) SA
1 January 2024
100%
France
Ordinary
Investment advisory
CVC Investment Advisory Services S.L.
1 January 2024
100%
Spain
Ordinary
Investment advisory
CVC Advisers (Italia) Srl
1 January 2024
100%
Italy
Ordinary
Investment advisory
CVC Advisers Services Sàrl
1 January 2024
100%
Luxembourg
Ordinary
Investment advisory
CVC Advisers (Polska) sp. z o.o.
1 January 2024
100%
Poland
Ordinary
Investment advisory
CVC Advisers (Stratops) Srl
1 January 2024
100%
Belgium
Ordinary
Investment advisory
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Notes to the Consolidated Financial Statements continued
33. Group information (continued)
CVC Capital Partners plc Annual Report 2024
The following companies were acquired during the year ended 31 December 2024:
Company Name
Date of acquisition
Percentage ownership
Country of incorporation
Holding
Principal activity
CVC Advisers Company (Luxembourg) Sàrl
1 January 2024
100%
Luxembourg
Ordinary
Administration services
CVC Advisers Jersey Limited
1 January 2024
100%
Jersey
Ordinary
Investment advisory
CVC Advisers Latam Representação e Consultoria Ltda
1 January 2024
96%
Brazil
Ordinary
Investment advisory
CVC Advisers (U.S.) Inc.
1 January 2024
100%
United States
Ordinary
Investment advisory
CVC Advisers (Middle East) Limited
1 January 2024
100%
Dubai
Ordinary
Investment advisory
CVC Advisory Partners India Holdings Limited
1 January 2024
100%
Jersey
Ordinary
Holding company
CVC Advisory Partners India Holdings II Limited
1 January 2024
100%
Jersey
Ordinary
Holding company
CVC Advisers (India) Private Limited
1 January 2024
100%
India
Ordinary
Investment advisory
CVC Credit Partners Group Holding Foundation
15 April 2024
100%
Jersey
Ordinary
Holding Company
CVC Capital Partners Credit Partners Holdings Limited
15 April 2024
100%
Jersey
Ordinary
Holding Company
CVC Capital Partners Credit Partners Holdings III Limited
15 April 2024
100%
Jersey
Ordinary
Holding Company
CVC Capital Markets Holdings (Jersey) Limited
15 April 2024
100%
Jersey
Ordinary
Holding Company
CVC Credit Partners General Partner Limited
15 April 2024
100%
Jersey
Ordinary
General Partner
CVC Capital Markets Sàrl (Luxembourg)
15 April 2024
100%
Luxembourg
Ordinary
Broker / Dealer
CVC Credit Partners L.P.
15 April 2024
100%
Cayman
Ordinary
Holding Company
CVC Credit Partners Investment Management Limited
15 April 2024
100%
United Kingdom
Ordinary
Investment manager
CVC Italy Srl
15 April 2024
100%
Italy
Ordinary
Investment manager
CVC Credit Partners Group Limited
15 April 2024
100%
Jersey
Ordinary
Investment manager
CVC Credit Partners LLC
15 April 2024
100%
United States
Ordinary
Investment manager
CVC Credit Partners Investment Holdings II Limited
15 April 2024
38%
Jersey
Ordinary
Investment holding
CVC Credit Partners Investment Services Management Limited
15 April 2024
100%
Jersey
Ordinary
Investment manager
Apidos CLO Funding (RR) Subsidiary LLC
15 April 2024
100%
United States
Ordinary
Investment vehicle
CVC Funding LLC
15 April 2024
100%
United States
Membership interests
Broker / Dealer
DIF Management Holding B.V.
1 July 2024
60%
Netherlands
Ordinary
Holding company
DIF Management B.V.
1 July 2024
60%
Netherlands
Ordinary
Administration services
DIF Management Canada ULC
1 July 2024
60%
Canada
Ordinary
Administration services
DIF Management France Sàrl
1 July 2024
60%
France
Ordinary
Administration services
DIF Management UK Limited
1 July 2024
60%
United Kingdom
Ordinary
Administration services
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Notes to the Consolidated Financial Statements continued
33. Group information (continued)
The following companies were acquired during the year ended 31 December 2024 (continued):
CVC Capital Partners plc Annual Report 2024
Company Name
Date of acquisition
Percentage ownership
Country of incorporation
Holding
Principal activity
DIF Consulting Deutschland GmbH
1 July 2024
60%
Germany
Ordinary
Administration services
DIF Management Spain S.L.
1 July 2024
60%
Spain
Ordinary
Administration services
DIF Management Australia Pty Limited
1 July 2024
60%
Australia
Ordinary
Administration services
DIF Management US LLC
1 July 2024
60%
United States
Ordinary
Administration services
Private Investment Strategic Opportunities II GP Limited
29 April 2024
100%
Jersey
Ordinary
General Partner
CVC Capital Partners Strategic Opportunities II Limited
30 April 2024
100%
Jersey
Ordinary
General Partner
CVC Capital Partners VII Limited
6 June 2024
100%
Jersey
Ordinary
General Partner
(b) Consolidated structured entities
The table below shows details of structured entities that the Group has deemed it controls and are consolidated within the consolidated financial statements.
Company Name
Percentage
Country of incorporation
Holding
Principal activity
CVC Capital Partners Investment Europe VIII L.P.
60%
Jersey
N/A
Limited Partner
CVC Capital Partners Investment Growth II L.P.
24%
Jersey
N/A
Limited Partner
CVC Capital Partners Investment Europe VII L.P.
31%
Jersey
N/A
Limited Partner
CVC Investment Strategic Opportunities II L.P.
70%
Jersey
N/A
Limited Partner
CVC Capital Partners Investment Europe IX L.P.
100%
Jersey
N/A
Limited Partner
CVC Capital Partners Investment Asia VI L.P.
100%
Jersey
N/A
Limited Partner
CVC Private Credit (Holdings) SCSp
100%
Luxembourg
Ordinary
Holding vehicle
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Notes to the Consolidated Financial Statements continued
33. Group information (continued)
The following companies were acquired during the year ended 31 December 2024 (continued):
CVC Capital Partners plc Annual Report 2024
34. Unconsolidated structured entities
The Group’s interest in and exposure to unconsolidated structured entities is detailed in the table below.
Group share of Carried
Fund carried carried interest / Carried Value of the Group
Typical Group Typical Management interest / interest / performance interest / Group’s co- maximum
commitment management fees earned performance performance fees earned Management performance investments exposure to loss
FPAUM
1
to the fund as fee range
by the Group
2
fee rate fees by the Group
fees receivable
Due from funds
fees receivable at period-end at period-end
€ m
%
%
€ 000
%
%
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
31 December 2024
Private Equity funds
78,957
2.30%
0.75–1.4%
860,058
Up to 20%
30%
166,910
8,589
25,893
246,046
947,086
1,227,613
Infrastructure funds
14,130
1.00%
1.2–1.5%
89,561
Up to 17.5%
20%
—
6,242
871
—
43,969
51,083
Secondaries funds
13,587
1.00%
0.5–1.0%
95,074
Up to 20%
30%
—
2,113
895
—
2,067
5,075
CLOs
27,977
4–5%
0.375–0.45%
64,452
Up to 20%
50%
—
19,623
—
—
96,160
115,783
Credit vehicles
12,671
0–2%
0.35–1.50%
63,675
Up to 20%
50%
6,260
5,737
11,183
8,880
128,459
154,258
147,322
1,172,820
173,170
42,304
38,842
254,926
1,217,741
1,553,812
31 December 2023
Private Equity funds
50,264
2.30%
0.75–1.4%
643,832
Up to 20%
30%
163,170
—
27,715
190,461
105,130
323,306
Secondaries funds
9,663
—
0.5–1.0%
99,536
—
—
—
—
1,086
—
—
1,086
Credit vehicles
—
—
—
—
—
—
—
—
—
—
99,857
99,857
59,927
743,368
163,170
—
28,801
190,461
204,987
424,249
1
Fee paying assets under management (FPAUM) represents the total committed capital or invested capital upon which total management fees are earned. FPAUM for Growth funds and credit vehicles includes the committed capital or invested capital of co-invest sidecar.
2
Management fees exclude €8.4m of fees earned from the Group acting as an underwriter or placement agent in offerings or placements of debt and/or equity financing.
35. Subsequent events
On 19 March 2025, the Board recommended a dividend of €225m, to be paid in June 2025, to shareholders on the register as at 23 May 2025.
On 12 February 2025, the Group transferred €269.6m of Fund IX commitments and €58.1m of Asia VI commitments to staff plan and associates vehicles, followed by an additional transfer of €250.2m of Fund IX commitments
on 13 February 2025.
On 10 February 2025, the Group committed to sell €223.5m of fund commitments to CVC-PE for consideration equal to NAV which approximated €193.6m as at 31 December 2024. Of this, commitments of €138.5m have
been sold as at the date of publication. At the same time the Group made a capital commitment of €20m to CVC-PE.
On 10 February 2025, the Group made an additional capital commitment to CVC Strategic Opportunities III of €150m resulting in a total capital commitment of €270m.
On 16 January 2025, the Group extended the current revolving credit facility for an incremental commitment of €200m. The total credit facility available to the Group until 24 August 2028 is now €800m.
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Notes to the Consolidated Financial Statements continued
CVC Capital Partners plc Annual Report 2024
All figures in € 000 Notes Dec-24 Dec-23
Personnel expenses 4 (2,097) —
General and administrative expenses 5 (5,733) (688)
Gain on financial asset 11 3,401 —
Total operating loss (4,429) (688)
Finance expense (2) (1)
Loss before and after income tax (4,431) (689)
Total comprehensive loss (4,431) (689)
All figures in € 000 Notes Dec-24 Dec-23
Assets
Non-current assets
Investments in subsidiaries 6 1,879,105 —
Other financial asset 7 21,673 —
Current assets
Cash and cash equivalents 3,968 1,266
Total current assets 1,904,746 1,266
Liabilities
Current liabilities
Trade and other payables 225 206
Total current liabilities 225 206
Total liabilities 225 206
Net assets 1,904,521 1,060
Equity
Stated capital 1,022,419 2,500
Other reserves 3,324 —
Retained earnings/(accumulated losses) 878,778 (1,440)
Total equity 1,904,521 1,060
The financial statements were approved by the Board of directors and authorised for issue on 19 March 2025
and were signed on its behalf by:
Fred Watt
Director
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Company Statement of Profit or
Loss and Comprehensive Income
Company Statement
of Financial Position
For the year ended 31 December 2024
As at 31 December 2024
CVC Capital Partners plc Annual Report 2024
The notes to the accounts form an integral part of these financial statements.
All figures in € 000 Notes Stated capital Other reserves
Retained
earnings
(accumulated
losses) Total equity
As at 1 January 2024 2,500 — (1,440) 1,060
Loss for the period — — (4,431) (4,431)
Total comprehensive loss — — (4,431) (4,431)
Stated capital issuance 250,000 — — 250,000
Capitalised costs (1,583) — — (1,583)
Acquisitions 1,648,459 — — 1,648,459
Capital reduction (876,957) — 876,957 —
Share based payments 4, 7 — 3,324 — 3,324
Other contributions — — 7,692 7,692
As at 31 December 2024 1,022,419 3,324 878,778 1,904,521
All figures in € 000 Stated capital
Accumulated
losses Total equity
As at 1 January 2023 1,250 (751) 499
Loss for the period — (689) (689)
Total comprehensive loss — (689) (689)
Stated capital issuance 1,250 — 1,250
As at 31 December 2023 2,500 (1,440) 1,060
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Company Statement of Changes in Equity
For the year ended 31 December 2024
CVC Capital Partners plc Annual Report 2024
The notes to the accounts form an integral part of these financial statements
All figures in € 000 Notes
Dec-24 Dec-23
Cash flows from operating activities
Cash used in operations
11
(5,715) (653)
Net cash outflows used in operating activities (5,715) (653)
Cash flows from investing activities
Contributions paid to subsidiary (240,000) —
Net cash outflows used in investing activities (240,000) —
Cash flows from financing activities
Proceeds from issue of shares by the Company 250,000 1,250
Capitalised share issuance costs (1,583) —
Net cash inflows from financing activities 248,417 1,250
Net increase in cash and cash equivalents 2,702 597
Cash and cash equivalents at the beginning of the period 1,266 669
Cash and cash equivalents at the end of the period 3,968 1,266
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Company Statement of Cash flows
For the year ended 31 December 2024
CVC Capital Partners plc Annual Report 2024
The notes to the accounts form an integral part of these financial statements
1. General information and basis of preparation
General information
The company financial statements of CVC Capital Partners plc (the Company) including the notes thereon
have been prepared in accordance with IFRS and in compliance with the Companies (Jersey) Law 1991.
The recognition and measurement principles applied in these company financial statements are the same
asthose applied in the consolidated financial statements.
Basis of preparation
The financial statements have been prepared on the historical cost basis.
The financial statements are presented in euros, which is the currency of the primary economic environment
inwhich the Company operates (the ‘functional currency’), rounded to the nearest thousand.
Going concern
The directors have made inquiries and having considered the current economic climate at the time of
approving the individual financial statements, as well as the expected working capital requirements that the
Company will have for the 12 months from the date that these financial statements are signed and issued,
they have a reasonable expectation that the Company will have adequate resources to continue in operational
existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in
preparing the Company financial statements.
2. Material accounting policies
The financial statements for the Company have been prepared under the same accounting treatments
asdescribed in the Group accounting policies in note 2 of the consolidated financial statements,
whereapplicable.
3. Critical judgements in the application of accounting policies and key sources of estimation
uncertainty
On 1 July 2024, the Company acquired 60% of CVC DIF. Included in the share purchase agreement is an
obligation for the Company to purchase the remaining 40% interests in DIF. In accordance with the share
purchase agreement, 20% of the outstanding shares will be purchased in January 2027, and the final 20% will
be purchased in January 2029. The consideration for these subsequent acquisitions will be the issue of shares in
CVC Capital Partners plc equivalent to the fair value of the interest in CVC DIF acquired by the Company from
the sellers.
As part of the acquisition, the Company is subject to a call option which, if exercised, provides the Company with
a discount over the price paid for 5% of the final 20% of CVC DIF. The discount allows the Company to purchase
the 5% at the initial acquisition price. The Company accounts for this option under IFRS 9 as a level 3 financial
asset held at fair value through profit or loss. The fair value of the call option is calculated using a Black Scholes
model, which includes certain unobservable inputs. This valuation is considered a key source of estimation
uncertainty for the Company. Refer to note 7 of these Company financial statements for further details.
4. Personnel expenses
Personnel expenses include charges related to the Company’s LTIP, which have been granted to senior
executives of the Company, including members of key management personnel. Refer to note 8 of the
consolidated financial statements for further information.
5. General and administrative expenses
General business expenses include professional services as well as expenses related to the listing on
EuronextAmsterdam.
Audit fees for the Group are disclosed in note 9 of the consolidated financial statements.
6. Investments in subsidiaries
Investments in subsidiaries reflect the Company’s ownership in MHII and its subsidiaries, which were acquired
on 29 April 2024, as well as the acquisition of non-controlling interests of CVC Secondaries. Refer to notes 4
and 5 of the consolidated financial statements for further information. Investments in subsidiaries are held at
cost less accumulated impairment losses. No impairment was recorded for the year ended 31December 2024
(Dec-23: nil).
All figures in € 000 Dec-24 Dec-23
Investments at cost — —
Additions 1,082,903 —
Acquisition of non-controlling interests 796,202 —
Total investments in subsidiaries 1,879,105 —
Refer to note 33 of the consolidated financial statements for a full list of the Company’s investments in
subsidiaries.
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Notes to the Company Financial Statements
CVC Capital Partners plc Annual Report 2024
7. Other financial asset
The following table summarises the inputs used to estimate the financial asset’s fair value, together with
aquantitative sensitivity analysis. The sensitivity analysis has been calculated by applying a 10% increase
anda 10% decrease to the unobservable inputs used in the valuation. The Company has determined that this
sensitivity is reasonably possible and would result in a material change to the fair value of the financial asset.
Fair value as at 31
December 2024
€ m
Primary
valuation
technique
Key
unobservable
inputs
Weighted
average/Fair
value inputs
Sensitivity
scenarios
Effect on fair
value
€ m
Other
financial
asset
21.7
Black-Scholes
model
Volatility 40% 10% 1.4
Risk-free rate 2.8 % (10%) (1.4)
If the Company elects to pay the discounted price for the final tranche of shares, the discount received is to be
allocated to an ESOP, which has been accounted for as an equity-settled share-based payment under IFRS 2
within one of the Group’s subsidiaries, as it will be settled in shares of CVC Capital Partners plc. The expense
related to the ESOP is recorded within personnel expense within the consolidated statement of profit or loss.
Within the Company financial statements the amount associated to the ESOP is reflected as an increase in
investments in subsidiaries and to other reserves of €1.2m (Dec-23: nil). Refer to note 8 of the consolidated
financial statements for further information.
8. Guarantees
The Company is party to a credit agreement as a guarantor to a €200m RCF. The RCF matures in August
2028 and contains two financial covenants: one requiring the guarantors to maintain minimum AUM of
€20bn (plus 50% of the AUM of businesses acquired by the guarantors) and a second setting a maximum total
net leverage ratio of 4:1. The total net leverage ratio is calculated on the basis of consolidated total debt for
borrowed money less unrestricted cash compared to EBITDA, adjusted for certain items as detailed within the
credit agreement, for the most recent period of four consecutive quarters. As at 31December 2024, the
Company was fully compliant with the covenants. As at 31December 2024, the RCF had €143.3m drawn
(Dec-23: €137.5m).
9. Financial risk management
The Company’s risk management framework is the same as that applied by the Group. Refer to note 27 in the
consolidated financial statements.
10. Capital management
The Company’s capital management policies are the same as those applied by the Group. Refer to note 28
inthe consolidated financial statements.
11. Cash flow information
All figures in € 000 Dec-24 Dec-23
Loss before and after income tax (4,431) (689)
Adjustments to reconcile loss for the period to net cash flows:
Finance expense 2 1
Gain on financial asset (3,401) —
Share-based payments expense 2,097 —
Movements in working capital: (1,302) 1
Increase in trade and other payables 18 35
Net cash outflows used in operating activities (5,715) (653)
12. Related party transactions
(a) Key management compensation
Under the Company’s LTIP, options were granted to senior executives of the Company on 16 December 2024,
including members of KMP. The Company accounts for the LTIP as an equity-settled plan in line with IFRS 2
and, for the year ended 31December 2024, €2.1m (Dec-23: nil) was recognised in personnel expenses together
with a corresponding increase in other reserves, relating to employee services received during the year. Refer to
note 8 in the consolidated financial statements for further details.
(b) Transactions with KMP
During the year ended 31 December 2024 the Company received proceeds of €1.1m from KMP for the
purchase of shares of CVC Capital Partners plc.
(c) Transactions with the SIF
The Company received contributions of €7.7m from the SIF, related to the acquisition of CVC DIF. Refer to
note 5 in the consolidated financial statements for further details.
13. Subsequent events
For more information refer to note 35 in the consolidated financial statements.
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Notes to the Company Financial Statements continued
CVC Capital Partners plc Annual Report 2024
Additional
Information
In this section:
ESEF Assurance Opinion 248
Statutory to pro forma
reconciliation
249
Alternative performance
measuresreconciliations
250
Adjusted pro forma operating
segments
256
Glossary 257
Financial calendar for 2025 260
Key contacts 260
Forward-looking
statementsdisclaimer
260
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247
CVC Capital Partners plc Annual Report 2024
Independent auditor’s
reasonable assurance
reporttothe members of
CVCCapital Partners plc’s on
the compliance of Electronic
Format Annual Financial
Report with the European
Single Electronic Format
Regulatory Technical Standard
(‘ESEF RTS’).
Report on compliance with the requirements
foriXBRL mark up (‘tagging’) of consolidated
financial statements included in the Electronic
Format Annual Financial Report.
We have undertaken a reasonable assurance
engagement on the iXBRL mark up of consolidated
financial statements for the year ended 31 December
2024 of CVC Capital Partners PLC (the “Company”)
included in the ESEF-prepared Annual Financial
Report prepared by the company.
Opinion
In our opinion, the consolidated financial statements
for the year ended 31
December 2024 of the
Company included in the ESEF-prepared Annual
Financial Report, are marked up, in all material
respects, in compliance with ESEF RTS.
The directors’ responsibility for the Electronic Format
Annual Financial Report prepared in compliance with
ESEF RTS.
The directors are responsible for preparing the
Electronic Format Annual Financial Report. This
responsibility includes:
– the selection and application of appropriate iXBRL
tags using judgement where necessary;
– ensuring consistency between digitised information
and the consolidated financial statements
presented in human-readable format; and
– the design, implementation and maintenance
ofinternal control relevant to the application
ofESEF RTS.
Our independence and quality control
We have complied with the independence and other
ethical requirements of Financial Reporting Council’s
(the ‘FRC’s’) Ethical Standard as applied to listed
public interest entities, and we have fulfilled our
otherethical responsibilities in accordance with
theserequirements.
We apply International Standard on Quality
Monitoring (ISQM) 1 and, accordingly, maintain
acomprehensive system of quality control
includingdocumented policies and procedures
regarding compliance with ethical requirements,
professional standards and applicable legal and
regulatory requirements.
Our responsibility
Our responsibility is to express an opinion on
whetherthe iXBRL mark up of consolidated financial
statements complies in all material respects
withESEF RTS based on the evidence we have
obtained. We conducted our reasonable assurance
engagement in accordance with International
Standard on Assurance Engagements (UK) 3000,
Assurance Engagements Other than Audits
orReviews of Historical Financial Information
(‘ISAE(UK) 3000’) issued by the FRC.
A reasonable assurance engagement in accordance
with ISAE (UK) 3000 involves performing procedures
to obtain reasonable assurance about the
compliance of the mark up of the consolidated
financial statements with the ESEF RTS. The nature,
timing and extent of procedures selected depend
onthe practitioner’s judgement, including the
assessment of the risks of material departures from
the requirements set out in ESEF RTS, whether due
tofraud or error. Our reasonable assurance
engagement consisted primarily of:
– obtaining an understanding of the iXBRL mark up
process, including internal control over the mark up
process relevant to the engagement;
– reconciling the marked up data with the audited
consolidated financial statements of the company
dated 31 December 2024;
– evaluating the appropriateness of the company’s
mark up of the consolidated financial statements
using the iXBRL mark-up language;
– evaluating the appropriateness of the company’s
use of iXBRL elements selected from a generally
accepted taxonomy and the creation of extension
elements where no suitable element in the generally
accepted taxonomy has been identified; and
– evaluating the use of anchoring in relation to the
extension elements.
In this report we do not express an audit opinion,
review conclusion or any other assurance conclusion
on the consolidated financial statements. Our audit
opinion relating to the consolidated financial
statements of the company for the year ended
31December 2024 is set out in our Independent
Auditor’s Report dated 19 March 2025.
Use of our report
Our report is made solely to the Company’s
members, as a body, in accordance with ISAE (UK)
3000. Our work has been undertaken so that we
might state to the company those matters we are
required to state to them in this report and for no
other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone
other than the company and the company’s
members as a body for our work, this report, or for
the conclusions we have formed.
Terri Fielding, ACA
For and on behalf of Deloitte LLP
Recognised Auditor
London, United Kingdom
19 March 2025
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ESEF Assurance Opinion
CVC Capital Partners plc Annual Report 2024
Dec-24 Dec-23
(€ 000) Statutory Adjustments Pro Forma Statutory Adjustments Pro Forma
Management fees 1,181,234 146,415 1,327,649 743,368 336,224 1,079,592
Carried interest and performance fees 173,170 (670) 172,500 163,170 6,354 169,524
Investment income 207,528 6,688 214,216 81,428 11,069 92,497
Other operating income 3,733 (610) 3,123 6,752 641 7,393
Total revenue 1,565,665 151,823 1,717,488 994,718 354,288 1,349,006
Advisory fee expense — — — (400,437) 400,437 —
Personnel expenses (427,668) (61,448) (489,116) (59,902) (385,435) (445,337)
General and administrative expenses (193,838) (17,137) (210,975) (95,883) (123,135) (219,018)
Change in valuation of forward liability (463,305) — (463,305) (84,825) — (84,825)
Foreign exchange losses (3,188) (974) (4,162) 5,706 (1,944) 3,762
Expenses with respect to investment vehicles (4,010) (44) (4,054) (440) (494) (934)
EBITDA 473,656 72,220 545,876 358,937 243,717 602,654
Depreciation and amortisation (125,033) (55,523) (180,556) (25,991) (151,606) (177,597)
Total operating profit 348,623 16,697 365,320 332,946 92,111 425,057
Finance income 12,878 370 13,248 10,788 4,632 15,420
Finance expense (53,035) 1,501 (51,534) (31,251) (10,553) (41,804)
Profit before income tax 308,466 18,568 327,034 312,483 86,190 398,673
Income tax charge (350) (9,154) (9,504) (9,769) (43,684) (53,453)
Profit after income tax 308,116 9,414 317,530 302,714 42,506 345,220
Attributable to:
Equity holders of the parent 225,295 11,775 237,070 280,493 39,111 319,604
Non-controlling interests 82,821 (2,361) 80,460 22,221 3,395 25,616
Dec-24 Dec-23
(€ 000) Statutory Adjustments Pro Forma Statutory Adjustments Pro Forma
Cash and cash equivalents 618,289 — 618,289 100,677 395,634 496,311
Financial assets at fair value through profit or loss 1,890,532 — 1,890,532 935,674 160,216 1,095,890
Pro forma adjustments for the year ended
31December 2024 comprise:
Results of CVC Credit and CVC DIF
1
from 1 January
2024 to the date of their acquisition on 15 April 2024
and 1 July 2024 respectively, adjusted for
intercompany eliminations, additional amortisation,
depreciation, and deferred tax resulting from
acquired assets, a reduction of €2m to finance
expense, as well as a reduction to profit attributable
to non-controlling interests which were acquired by
the Group on 29 April 2024.
Pro forma adjustments for the year ended
andasat 31 December 2023 comprise:
Results of the Advisory Group, CVC Credit, and
CVCDIF for the year ended 31December 2023,
adjusted for intercompany eliminations, additional
amortisation, depreciation, and deferred tax
resulting from acquired assets. The statements of
financial position of CVC Credit, the Advisory Group,
and CVC DIF as at 31December 2023 have been
added to the statutory statement of financial
position, adjusted for intercompany eliminations.
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Statutory to pro forma reconciliation
CVC Capital Partners plc Annual Report 2024
Note: Pro forma information is unaudited.
1. Pro forma adjustments related to CVC DIF’s H1-24 results include the addition of €85m of management fees, €0.1m of other operating income, €33.9m of personnel expenses, €10.7m of general and administrative
expenses, €41.2m of depreciation and amortisation, €1.6m of finance expense, and €4.4m of income tax charge.
The following APMs are used by the Group to monitor and manage the financial and operating performance
of its business. The APMs tracked by the Group and certain financial measures included in this Annual Report
and Accounts are not defined or recognised under IFRS, including adjusted pro forma total revenue, adjusted
pro forma EBITDA, adjusted pro forma profit after income tax, pro forma MFE, pro forma MFE margin, pro
forma PRE, adjusted cash and cash equivalents, adjusted financial assets at fair value through profit or loss,
and adjusted earnings per share. Definitions of these APMs and reconciliations to the nearest IFRS figures are
provided subsequently on pages 250 to 255. These measures are used internally by the Group to help assess
the Group’s operational and financial performance. The Company believes that these APMs, in addition to
IFRS measures, help to provide a fuller understanding of the Group’s results.
There are no generally accepted principles governing the calculation of APMs and the criteria upon which
these measures are based can vary from company to company and have limitations as analytical tools. These
measures, by themselves, do not provide a sufficient basis to compare the Group’s performance with that of
other companies and should not be considered in isolation or as a substitute for profit or loss after income tax
or any other measure as an indicator of operating performance as reported under IFRS, nor as an alternative
to cash generated from operating activities as a measure of liquidity. The Group does not regard these APMs
as a substitute for, or superior to, the equivalent measures that are calculated in accordance with IFRS.
(a) Adjusted pro forma total revenue
Adjusted pro forma total revenue is adjusted for: (i) income attributable to non-controlling interests and
toassets that will not be retained by the Group; (ii) items that are exceptional or one-off in nature; and
(iii)performance-related costs, as these items could distort underlying trends in contributions of the funds to
revenue. IFRS requires revenue to be recognised on a gross basis, whereas the Group considers that reporting
carried interest and returns on investments on a net basis is a meaningful alternative measure of the Group’s
operating revenue, since it isolates the returns that are due to the Group, excluding non-controlling interests
and FX.
The Group considers adjusted pro forma total revenue to provide investors with a relevant alternative view to
IFRS measures of the underlying performance of the Group that is attributable to the shareholders of Group,
reflecting underlying revenue generated from the operating activities of the Group. Adjusted pro forma total
revenue is equivalent to the sum of management fees, PRE and other operating income.
Adjusted Pro Forma Total Revenue (€ 000) Dec-24 Dec-23
Pro forma total revenue
1
1,717,488 1,349,006
Less: Investment income attributable to NCI
2
(104,834) (21,336)
Less: FX on carried interest provision
3
(11,755) 6,181
Less: Performance-related costs
4
(87,957) (73,033)
Less: Exceptional other operating income
5
— (4,127)
Adjusted pro forma total revenue 1,512,942 1,256,691
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Alternative performance measures reconciliations
CVC Capital Partners plc Annual Report 2024
Note: APM information is unaudited. Refer to pages 254 to 255 for footnotes.
(b) Adjusted pro forma EBITDA
The Group considers EBITDA to be a meaningful measure of the operating profitability of the Group, by
excluding from IFRS operating profit depreciation and amortisation charges (as the measurement of such
amounts may differ to that of comparable companies).
The Group considers adjusted pro forma EBITDA to provide investors with a relevant alternative view to IFRS
measures of the underlying operating profitability of the Group that is attributable to the shareholders of
Group, as it excludes items that the Group does not believe are indicative of the Group’s ongoing operating
performance and allows management to view operating trends, perform analytical comparisons and
benchmark performance between periods. The Group uses this metric to assess underlying profit from its
operations which may, in turn, be used to inform operating, budgeting and capital allocation decisions.
TheGroup believes that adjusted pro forma EBITDA is useful for investors to understand how management
assesses the Group’s ongoing operating performance on a consistent basis.
Adjusted Pro Forma EBITDA (€ 000) Dec-24 Dec-23
Pro forma EBITDA
1
545,876 602,654
Less: Investment income attributable to NCI
2
(104,834) (21,336)
Add back: Exceptional expenses
6
57,018 71,043
Add back: Change in valuation of forward liability
7
463,305 84,825
Add back: Expenses related to recharged lease agreements
8
366 483
Add back: Expenses with respect to investment vehicles
9
4,053 934
Less: Exceptional other operating income
5
— (4,127)
Adjusted pro forma EBITDA 965,784 734,476
(c) Adjusted pro forma profit after income tax
Adjusted pro forma profit after income tax is adjusted for income and expenses that are attributable to non-
controlling interests and/or expense that are exceptional or one-off in nature as these could distort trends in
the Group’s underlying earnings. The Group considers adjusted pro forma profit after income tax to provide
investors with a relevant alternative view to IFRS measures of the underlying operating profitability of the
Group that is attributable to the shareholders of Group as it excludes items that the Group does not believe are
indicative of the Group’s ongoing operating performance.
Adjusted Pro Forma Profit After Income Tax (€ 000) Dec-24 Dec-23
Pro forma profit after income tax
1
317,530 345,220
Less: Investment income attributable to NCI
2
(104,834) (21,336)
Add back: Exceptional expenses
6
55,882 70,119
Add back: Change in valuation of forward liability
7
463,305 84,825
Add back: Expenses with respect to investment vehicles
9
4,053 934
Add back: Amortisation of acquired intangible assets
10
141,575 141,563
Less: Deferred tax related to acquired intangible assets
10
(31,684) (31,594)
Add back: Net finance expense attributable to NCI
11
11,715 8,695
Less: Exceptional tax
12
(28,021) 14,704
Less: Exceptional other operating income
5
— (4,127)
Adjusted pro forma profit after income tax 829,521 609,003
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Alternative performance measures reconciliations continued
CVC Capital Partners plc Annual Report 2024
Note: APM information is unaudited. Refer to pages 254 to 255 for footnotes.
(d) Management fee earnings (MFE) and MFE margin
MFE and MFE margin are calculated by deducting from management fees earned by the Group: personnel
expenses (excluding the performance-related element which is recognised within PRE); general and
administrative expenses incurred by the Group; and all items of income and/or expense that are exceptional
orone-off in nature (as these could distort trends in the Group’s underlying earnings) or relate to foreign
exchange movements.
The Group considers pro forma MFE and pro forma MFE margin to provide investors with a relevant alternative
view to IFRS of underlying management fee-related earnings of the Group to present the profitability of the
Group’s business based on management fee revenue.
Pro Forma MFE (€ 000) Dec-24 Dec-23
Management fees
1
1,327,649 1,079,592
Personnel expenses
1
(489,116) (445,337)
General and administrative expenses
1
(210,975) (219,018)
Foreign exchange gains/(losses) (4,162) 3,762
Add back: Exceptional expenses
6
57,018 71,043
Add back: FX on carried interest provision
3
11,755 (6,181)
Add back: Expenses related to recharged lease agreements
8
366 483
Add back: Performance-related costs
4
87,957 73,033
Pro forma MFE 780,492 557,377
Pro forma MFE margin 59% 52%
Reconciliation of pro forma MFE to pro forma operating profit
Carried interest and performance fees
1
172,500 169,524
Investment income
1
214,216 92,497
Other operating income
1
3,123 7,393
Change in valuation of forward liability
1
(463,305) (84,825)
Expenses with respect to investment vehicles
1
(4,054) (934)
Less: Exceptional expenses
6
(57,018) (71,043)
Less: FX on carried interest provision
3
(11,755) 6,181
Less: Expenses related to recharged lease agreements
8
(366) (483)
Less: Performance-related costs
4
(87,957) (73,033)
Pro forma EBITDA
1
545,876 602,654
Depreciation and amortisation
1
(180,556) (177,597)
Pro forma operating profit
1
365,320 425,057
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CVC Capital Partners plc Annual Report 2024
Note: APM information is unaudited. Refer to pages 254 to 255 for footnotes.
(e) Performance-related earnings (PRE)
PRE is calculated by summing performance-related elements of revenue (carried interest and performance fees,
and investment income) and deducting performance-related costs, income attributable to non-controlling
interests, and relevant foreign exchange movements.
The Group considers pro forma PRE to provide investors with a relevant alternative view to IFRS measures of
PRE of the Group that is attributable to the shareholders of Group.
Pro Forma PRE (€ 000) Dec-24 Dec-23
Carried interest and performance fees
1
172,500 169,524
Investment income
1
214,216 92,497
Less: Investment income attributable to NCI
2
(104,834) (21,336)
Less: FX on carried interest provision
3
(11,755) 6,181
Less: Performance-related costs
4
(87,957) (73,033)
Pro forma PRE 182,170 173,833
Reconciliation of pro forma PRE to pro forma operating profit
Management fees
1
1,327,649 1,079,592
Other operating income
1
3,123 7,393
Personnel expenses
1
(489,116) (445,337)
General and administrative expenses
1
(210,975) (219,018)
Change in valuation of forward liability
1
(463,305) (84,825)
Foreign exchange gains
1
(4,162) 3,762
Expenses with respect to investment vehicles
1
(4,054) (934)
Add back: Investment income attributable to NCI
2
104,834 21,336
Add back: FX on carried interest provision
3
11,755 (6,181)
Add back: Performance-related costs
4
87,957 73,033
Pro forma EBITDA
1
545,876 602,654
Depreciation and amortisation
1
(180,556) (177,597)
Pro forma operating profit
1
365,320 425,057
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Alternative performance measures reconciliations continued
CVC Capital Partners plc Annual Report 2024
Note: APM information is unaudited. Refer to pages 254 to 255 for footnotes.
(f) Adjusted cash and cash equivalents
Adjusted cash and cash equivalents represents the sum of cash and cash equivalents, adjusted for: (i) cash
relating to non-controlling interests, and (ii) cash received from the Group’s corporate RCF.
The Group considers adjusted cash and cash equivalents to provide investors with a relevant alternative view to
IFRS measures of the financial position of the Group that is attributable to the shareholders of Group.
Adjusted Cash and Cash Equivalents (€ 000) Dec-24 Dec-23
Cash and cash equivalents
13
618,289 496,311
Less: Cash and cash equivalents attributable to NCI
14
(12,638) (5,613)
Less: RCF
15
(72,211) (200,000)
Adjusted cash and cash equivalents 533,440 290,698
(g) Adjusted financial assets at fair value through profit or loss
Adjusted financial assets at fair value through profit or loss represents the sum of financial assets at fair value
through profit or loss, adjusted for investments relating to non-controlling interests.
The Group considers adjusted financial assets at fair value through profit or loss to provide investors with a
relevant alternative view to IFRS measures of the financial position of the Group that is attributable to the
shareholders of Group.
Adjusted Financial Assets at Fair Value Through Profit or Loss (€ 000) Dec-24 Dec-23
Financial assets at fair value through profit or loss
13
1,890,532 1,095,890
Less: Financial assets at fair value through profit or loss attributable
to NCI
16
(759,609) (263,379)
Adjusted financial assets at fair value through profit or loss 1,130,923 832,511
(h) Adjusted EPS
Adjusted EPS is calculated by dividing adjusted pro forma profit after income tax by the number of shares in
issuance post IPO, post the 40% acquisition of CVC Secondaries and the 60% acquisition of CVC DIF, and
reflecting the impact of the Group’s LTIP, to present EPS as if these events had taken place at the start of the
comparative period.
The Group considers adjusted EPS to provide investors with a relevant alternative view to the IFRS measure of
EPS as this measure is adjusted for items affecting comparability between periods.
Adjusted EPS Dec-24 Dec-23
Adjusted pro forma profit after income tax (€ 000) 829,521 609,003
Adjusted no. of ordinary shares
17
1,063,671,934 1,063,671,934
Adjusted EPS (€) 0.78 0.57
Notes:
1. Pro forma financial information is directly extracted from the consolidated pro forma statement of profit
or loss.
2. This figure comprises investment income attributable to non-controlling interests and from investments
pledged as collateral for loans. It has been deducted from investment income to show adjusted investment
income attributable to the Group.
3. Foreign exchange movement on carried interest provision has been deducted from carried interest revenue
to show net carried interest revenue.
4. Performance-related costs relate to employee compensation that is deemed attributable to the
generation of carried interest, performance fees and investment income.
5. Exceptional other operating income for the year ended 31December 2023 comprises reimbursements of
bonus expenses paid on behalf of others.
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Alternative performance measures reconciliations continued
CVC Capital Partners plc Annual Report 2024
Note: APM information is unaudited.
6. Exceptional expenses:
a. For the year ended 31December 2024, of the total €57m exceptional expenses items: €47.6m were
general and administrative expenses items and €9.5m were personnel expenses items. Exceptional
expenses comprise (i) expenses related to the listing on Euronext Amsterdam of €35.9m; (ii) legal and
professional fees related to the acquisition of CVC DIF of €10.7m; (iii) exceptional bonus awards paid
toindividuals of €9.5m including €5.4m related to the CVC DIF SAR awards; and (iv) other transaction
costs of €1m. For adjusted pro forma profit after income tax the above amounts are offset by
increased corporate tax expense of €1.1m.
b. For the year ended 31December 2023, of the total €71m exceptional expenses items: €60m were
general and administrative expenses items and €11.1m were personnel expenses items. Exceptional
expenses comprise (i) expenses related to the planned listing on Euronext Amsterdam of €49.3m;
(ii)legal and professional fees related to the acquisition of CVC DIF of €10.5m; (iii) exceptional bonus
awards paid to individuals of €11.1m; and (iv) other transaction costs of €0.3m. For adjusted pro forma
profit after income tax the above amounts are offset by increased corporate tax expense of €0.9m.
7. The forward liability represents the value of the Group’s obligation to acquire the remaining 40% interest in
CVC Secondaries and the remaining 40% interest in CVC DIF. The value of the liability with respect to CVC
Secondaries reflects the value of shares issued to the sellers during the year, together with a small cash
consideration. The interim and final acquisitions were completed on 10 May 2024 and 2 July 2024. The
value of the liability with respect to CVC DIF is due to be settled by the issue of shares of CVC Capital
Partners plc in 2027 and 2029. The value of the forward liability increased over the period in line with the
increase in the share price of CVC Capital Partners plc up to the date of acquisition, and the movement in
this value does not represent part of the Group’s operating results.
8. Certain expenses related to the recharge of lease costs have been included within general and
administrative expenses, due to the legal nature of the recharge agreement.
9. This figure comprises expenses, including tax expenses where applicable, with respect to investment
vehicles arising from the consolidation of GP commitments and Credit vehicles and are being added back
to show net investment income.
10. This figure comprises amortisation of CVC Secondaries, CVC Credit, and CVC DIFs acquired intangible
assets, and related deferred tax, which has been removed as it is not indicative of the Group’s
operatingresults.
11. This figure comprises net finance expense attributable to non-controlling interests and has been added
back to show adjusted profit after income tax net of non-controlling interests.
12. This figure comprises the Group’s uncertain tax positions and deferred tax related to MCIT rules which have
been removed as these income tax amounts are not indicative of the Group’s underlying operating results.
13. Cash and cash equivalents and financial assets at fair value through profit or loss as 31December 2024
are directly extracted from the consolidated statement of financial position. Cash and cash equivalents
and financial assets at fair value through profit or loss as at 31December 2023 are presented on a pro
forma basis.
14. This figure comprises cash and cash equivalents attributable to non-controlling interests and has been
deducted from cash and cash equivalents to show adjusted cash and cash equivalents attributable to
theGroup.
15. This figure comprises the cash received from the Group’s corporate RCF. Adjusted cash and cash equivalents
have been presented net of cash received from the RCF to show the Group’s cash working capital.
16. This figure comprises financial assets at fair value through profit or loss attributable to non-controlling
interests including €84.7m (Dec-23: €113.4m) related to investments pledged as collateral for loans and
has been deducted from financial assets at fair value through profit or loss to show adjusted financial
assets at fair value through profit or loss attributable to the Group.
17. Adjusted number of ordinary shares includes 1bn shares which were in issue at IPO, 25,536,048 shares
which were issued on 10 May 2024 in exchange for 20% of CVC Secondaries, 25,536,048 shares which
were issued on 2 July 2024 in exchange for the final 20% of CVC Secondaries, 11,912,396 which were issued
as part of the acquisition of CVC DIF, and 687,442 related to the Group’s LTIP.
18. Within pro forma adjusted EBITDA is an adjustment to reclass €7.1m (Dec-23: €8.1m) of costs out of
general and administrative expenses into personnel expenses. These costs relate to advisory services
provided by CVC Advisers (Benelux) SA/NV, which is not a subsidiary of the Group. If CVC Advisers
(Benelux) SA/NV were to be consolidated, a portion of these costs would have been reflected in personnel
expenses. There is no net impact on pro forma adjusted EBITDA. Refer to note 4 of the consolidated
financial statements for further details on CVC Advisers (Benelux) SA/NV.
19. In total, pro forma and APM adjustments result in a net €31.6m increase on profit attributable to CVC DIF’s
non-controlling interests, of which €20.5m relates to H2-24.
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CVC Capital Partners plc Annual Report 2024
Note: APM information is unaudited.
For the year ended 31 December 2024
All figures in (€m)
Private
Equity Secondaries Credit Infra
1
Central Total
Management fees 861 95 197 175 — 1,328
People costs (102) (20) (50) (41) (185) (399)
Non-people costs — — — — (148) (148)
Gross contribution/MFE
3
759 75 147 134 (334) 780
Carried interest and
performance fees 161
Investment income 109
PRC
2
(88)
PRE
3
182
Other operating income 3
Adjusted EBITDA
3
966
For the year ended 31 December 2023
All figures in (€m)
Private
Equity Secondaries Credit Infra
1
Central Total
Management fees 645 99 172 164 — 1,080
People costs (99) (17) (50) (37) (167) (370)
Non-people costs — — — — (153) (153)
Gross contribution/MFE
3
545 82 122 127 (320) 557
Carried interest and
performance fees 176
Investment income 71
PRC
2
(73)
PRE
3
174
Other operating income 3
Adjusted EBITDA
3
734
Note: Figures may not sum due to rounding. Pro forma and APM information is unaudited.
1. Infrastructure gross contribution for the year ended 31December 2024 excludes €10m of management fees related to catch-up fees earned in the first half of 2024 (Dec-23: €7m).
2. PRCs are performance-related costs incurred in the generation of PRE. Expenses reflect 20% of all people costs (excluding CVC DIF and Credit investment team personnel), plus Credit performance fees payable to Credit investment team personnel as bonus awards.
3. Refer to pages 249 to 255 for reconciliations of adjusted pro forma measures back to IFRS measures.
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Adjusted pro forma operating segments
CVC Capital Partners plc Annual Report 2024
Admission: Admission to listing as a public company
on Euronext Amsterdam
Advisory Group: CVC Capital Partners Advisory
Group Holding Foundation
AFM: Authority for the Financial Markets (Autoriteit
Financiële Markten)
AGM: Annual general meeting
AIFMD: Alternative Investment Fund Manager
Directive
AIFMS: Alternative investment fund managers
Annual Report: Annual Report & Accounts 2024
APM: Alternate performance measures
AR6: The Sixth Assessment Report of the IPCC.
Asia I: CVC Capital Partners Asia Pacific I, a fund in
CVC’s Asia Private Equity strategy
Asia II: CVC Capital Partners Asia Pacific II, a fund in
CVC’s Asia Private Equity strategy
Asia III: CVC Capital Partners Asia Pacific III, a fund
in CVC’s Asia Private Equity strategy
Asia IV: CVC Capital Partners Asia Pacific IV, a fund
in CVC’s Asia Private Equity strategy
Asia V: CVC Capital Partners Asia Pacific V, a fund in
CVC’s Asia Private Equity strategy
Asia VI: CVC Capital Partners Asia Pacific VI, a fund
in CVC’s Asia Private Equity strategy
AUM: Assets under management. For Private Equity
and Infrastructure funds in the investment period
and Secondary funds, AUM represents the total
valueof assets under management including
commitments by clients that have yet to be
deployed. For Private Equity funds in the harvesting
period, AUM represents the total value of assets
under management excluding any commitments
that have not been deployed. CVC Credit AUM
represents the net asset value of each Credit vehicle.
AUM includes non-fee paying AUM and the fair value
uplift in investments where relevant.
Board: the board of directors of CVC Capital
Partners plc
Capital raised: Total capital commitments made,
including commitments accepted to CVC’s private
funds, separate accounts, and evergreen products.
Amounts shown may include GP commitments and,
in Private Credit vehicles, leverage.
CARB: California Air Resource Board
CGU: Cash generating unit
CIF I: DIF Core Infrastructure Fund I Coöperatief
U.A., any feeder entity and any parallel fund entities
that may be established, and operating under the
name DIF Core Infrastructure Fund I
CIF II: DIF Core Infrastructure Fund II Coöperatief
U.A., any feeder entity and any parallel fund entities
that may be established, and operating under the
name DIF Core Infrastructure Fund II
CIF III: DIF Core Infrastructure Fund III Coöperatief
U.A., any feeder entity and any parallel fund entities
that may be established, and operating under the
name DIF Core Infrastructure Fund III
CIS: Carried interest sharing
CLOs: Collateralised loan obligations and collateral
debt obligations
CODM: Chief operating decision maker
Company: CVC Capital Partners plc
CPS: Client and product solutions
CSRD: Corporate Sustainability Reporting Directive
CVC DIF: CVC’s infrastructure strategy
CVC PE: CVC private equity
CVC: CVC Capital Partners plc together with each of
its controlled undertakings
CVC Credit: CVC Credit Partners Group Holding
Foundation
CVC-CRED: First evergreen Credit vehicle
DCF: Discounted cash flow model
DDAs: Disclosures Delegated Acts
Deployment: For Private Equity and Infrastructure
funds this is capital committed to be deployed from
the date of the signed SPA. Secondaries deployment
is net investment exposure which represents the
initial funded equity purchase price plus unfunded
commitments reasonably expected to be called
overthe life of the transaction. Credit deployment
isbased on movement in FPAUM by vehicle
(excl.FXand exits).
DIF V: DIF Infrastructure V Coöperatief U.A., DIF
Infrastructure V SCSp, any feeder entity and any
parallel fund entities that may be established, and
operating under the name DIF Infrastructure V
DIF VI: DIF Infrastructure VI Coöperatief U.A., DIF
Infrastructure VI SCSp, any feeder entity and any
parallel fund entities that may be established, and
operating under the name DIF Infrastructure VI
DIF VII: DIF Infrastructure VII Coöperatief U.A., DIF
Infrastructure VII SCSp, any feeder entity and any
parallel fund entities that may be established, and
operating under the name DIF Infrastructure VII
DIF VIII: DIF Infrastructure VIII Coöperatief U.A., DIF
Infrastructure VIII SCSp, any feeder entity and any
parallel fund entities that may be established, and
operating under the name DIF Infrastructure VIII
DNSH: Does not significantly harm
DORA: Digital Operational Resilience Act
EACs: Energy Attribute Certificates
EBIT: Earnings before interest and taxes
EBITA: Earnings before interest, taxes and
amortisation
EBITDA: Earnings before interest, taxes, depreciation
and amortisation
ECL: Expected credit losses
EI Holder: A holder of an EI (which will, for the
avoidance of doubt, exclude Euroclear Nederland),
capable of evidencing their holding in the EI through
the identity verification procedures implemented by
or on behalf of the Company from time to time and
provided that each EI will have no more than one
EIHolder recognised by the Company.
EPS: Earnings per share
ESEF: European Single Electronic Format
ESRS: European Sustainability Reporting Standards
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Glossary
CVC Capital Partners plc Annual Report 2024
EUDL IV and EUDL II: European direct lending IV and
European direct lending II
EV: Electric vehicle
FERA: Fuel and energy-related activities
FMV: Fair market value
FPAUM: Fee-paying assets under management
represents the total value of assets under
management on which management fees are
charged. Private Equity (other than Strategic
Opportunities) and Infrastructure charge
management fees on committed capital during the
investment period, and on invested capital during
the harvesting period. The Strategic Opportunities
funds charge management fees on invested capital
throughout the life of each fund. Secondaries funds
charge management fees on committed capital
throughout the life of each fund, but at a lower
ratethat reduces over time, following the end
oftheinvestment period. Management fees are
notcharged by reference to the fair value of the
relevant funds.
Credit vehicles generally charge management
feesby reference to invested assets or net asset
valueof each vehicle. FPAUM for Growth funds
includes the committed capital or invested capital
ofco-invest sidecars. FPAUM for certain Credit
vehicles includes the invested assets or net asset
value of co-invest sidecars.
The Group considers FPAUM to be a meaningful
measure of the Group’s capital base upon which it
earns management fees and uses the measure in
assessing operating, budgeting and other strategic
decisions. FPAUM is an operational performance
measure, is not defined or recognised under IFRS and
may not be directly comparable with similarly titled
measures used by other companies.
FRC: Financial Reporting Council
FTE: Full time equivalent
Fund VI: CVC Capital Partners VI, a fund in CVC’s
Europe / Americas Private Equity strategy
Fund VII: CVC Capital Partners VII, a fund in CVC’s
Europe / Americas Private Equity strategy
Fund VIII: CVC Capital Partners VIII, a fund in CVC’s
Europe / Americas Private Equity strategy
Fund IX: CVC Capital Partners IX, a fund in CVC’s
Europe / Americas Private Equity strategy
GHG: Greenhouse gas
GP: General partner
GRC: Group Risk Committee
Gross Contribution: Management fees less people
costs directly attributable to investment professionals
Gross multiple of invested capital (MOIC): MOIC
reflects the return that an investor receives (or is
expected to receive) before deduction of fees and
carry, expressed as a multiple of the amount of
capital invested.
Group: The Company and each of its subsidiaries
from time to time (excluding, for the avoidance of
doubt, any portfolio company in which any of the
funds holds an interest or investment).
Growth III: CVC Growth Partners III, a fund in CVC’s
Growth Private Equity strategy
GSS II: Global special situations II
GWP: Global warming potential
HFCS: Hydrofluorocarbons
IASB: International Accounting Standards Board
IBR: Incremental borrowing rate
IFRS: International Financial Reporting Standards
IIGCC: Institutional Investors Group on
ClimateChange
ILO: International Labour Organization
IPEV: International Private Equity and Venture
Capital Valuation
IRR: Internal rate of return
KMP: Key management personnel
KPIs: Key performance indicators
LCY: Local currency
LEI: Legal Entity Identifier
LP: Limited partner
LTIP: Long Term Incentive Plan
MCIT: Minimum corporate income tax
MFE: Management fee earnings
MHII: CVC Management Holdings II Limited
MHL: Vision Management Holdings Limited
MOIC: Multiple on invested capital
NCI: Non-controlling interest
NTAV: Net tangible asset value
NZIF: Net Zero Investment Framework
OECD: Organisation for Economic Co-operation
andDevelopment
OEMs: Originalequipment manufacturers
PPP/P3: Public-private partnership
PRC: Performance-related costs
PRE: Performance-related earnings
Pre-IPO Reorganisation: Ahead of the IPO the
Company underwent a pre-IPO reorganisation which
resulted in the acquisition by the Company of the
Advisory Group on 1 January 2024, CVC Credit on
15April 2024, and CVC Management Holdings II
Limited (MHII) on 29 April 2024.
PRI: Principles for Responsible Investment
Pro forma: Pro forma financial information reflects
the Group’s results as if the Pre-IPO Reorganisation
and acquisition of CVC DIF had been completed as
at 1 January 2023.
RAP: Risk appetite policy
RCF: Revolving credit facility
Realisations: Signed exits, across Private Equity,
Secondaries and Infrastructure funds.
RECs: Renewable energy certificates
SASB: Sustainability Accounting Standards Board
SAR: Share appreciation rights
SBTi: Science Based Targets initiative
SFDR: Sustainable Finance Disclosure Regulation
SIF: Clear Vision Capital Fund SICAV-FIS S.A. (formerly
known as CVC Capital Partners SICAV-FIS S.A.)
SME: Subject matter expert
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Glossary continued
CVC Capital Partners plc Annual Report 2024
SOF Funds Information: The SOF funds account for
their investments using a three-month lag, updated
for the SOF funds share of capital contributions
made and distributions received from the underlying
investments and for valuation changes in respect of
any material public company exposure where values
are observable. The three month lag is due to the
timing of financial information received from the
investments held by the SOF funds. The SOF funds
primarily invest in Private Equity funds, which
generally require at least 90 days following the
calendar year end and 60 days following quarter
endto present financial information.
SOF II: Secondary Opportunities Fund II, a fund in
CVC’s Secondaries strategy
SOF III: Secondary Opportunities Fund III, a fund in
CVC’s Secondaries strategy
SOF IV: Glendower Capital Secondary Opportunities
Fund IV, a fund in CVC’s Secondaries strategy
SOF V: Glendower Capital Secondary Opportunities
Fund V, a fund in CVC’s Secondaries strategy
SOF VI: Glendower Capital Secondary Opportunities
Fund VI, a fund in CVC’s Secondaries strategy
Strategic Opportunities I or StratOps I: CVC
Capital Partners Strategic Opportunities I, a fund in
CVC’s Strategic Opportunities Private Equity strategy
Strategic Opportunities II or StratOps II: CVC
Capital Partners Strategic Opportunities II, a fund in
CVC’s Strategic Opportunities Private Equity strategy
Strategic Opportunities III or StratOps III: CVC
Capital Partners Strategic Opportunities III, a fund in
CVC’s Strategic Opportunities Private Equity strategy
T&D: Transmission and distribution
TBV: Tangible book value
TCFD: Task Force on Climate-related
FinancialDisclosures
UN: United Nations
Value Add III and Value Add IV: CVC DIF funds
thatinvest in smaller companies with strong
competitive positions
VIU: Value in use
WACC: Weighted average cost of capital
WTT: Well-to-tank
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Glossary continued
CVC Capital Partners plc Annual Report 2024
Announcement of 2024 Full-Year Results 20 March
Publication of 2024 Annual Report and Accounts 20 March
Q1 Activity Update 15 May
Annual General Meeting of Shareholders 20 May
Ex-dividend date 2024 22 May
Dividend record date 23 May
2024 dividend payable 18 June
Q2 Activity Update 14 August
Announcement of 2025 Half-Year Results 4 September
Ex-interim dividend date 2025 11 September
Dividend record date 12 September
Interim dividend 2025 payable 6 October
Q3 Activity Update 14 November
CVC Capital Partners plc
Registered Office: Level 1, IFC 1, Esplanade, St. Helier, JE2 3BX Jersey
Registration Number: 140080
The International Security Identification Number (ISIN) of the CVC Capital Partners plc shares is
JE00BRX98089.
Walid Damou
Head of Business Development and Shareholder Relations
Tel: +44 207 420 4200
Email: shareholders@cvc.com
Patrick Humphris
Head of Corporate Affairs
Tel: +44 207 420 4200
Email: media@cvc.com
Forward-looking
statements disclaimer
This document contains forward-looking statements, which are statements that are not historical facts and
that reflect CVC’s beliefs and expectations with respect to future events and financial and operational
performance. These forward-looking statements involve known and unknown risks, uncertainties, assumptions,
estimates and other factors, which may be beyond the control of CVC and which may cause actual results or
performance to differ materially from those expressed or implied from such forward-looking statements, which
should therefore be treated with caution. Nothing contained within this document is or should be relied upon
as a warranty, promise or representation, express or implied, as to the future performance of CVC or its
business. Any historical information contained in this statistical information is not indicative of future
performance. The information contained in this document is provided as of the dates shown and, except
asrequired by law, CVC assumes no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information or for any other reason. Nothing in this document should be construed
as legal, tax, investment, financial, or accounting advice, or solicitation for, or an offer to, invest in CVC.
Nostatement in this communication is intended to be a profit forecast.
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Financial calendar for 2025 Key contacts
CVC Capital Partners plc Annual Report 2024
cvc.com