Private Equity

CVC deals worth billions did not use investor cash

Use of fund overdrafts continues to increase across the private equity industry

Monday 25 July 2016 at 17:00

CVC acquired a majority stake in German betting company Tipico in April
CVC acquired a majority stake in German betting company Tipico in April Photo: Getty Images

CVC Capital Partners has acquired businesses worth more than $2 billion without using a single penny from investors so far in 2016, in an extreme example of firms using fund overdrafts.

The European buyout firm has told investors it will send them an annual bill outlining all the investments for that year in December and collecting all the money in one go, according to people familiar with the situation.