Get ready for an exciting development in the world of private markets! CVC Secondary Partners is taking on the thriving credit secondaries market, and it's a game-changer.
CVC, a renowned global private markets leader, has announced its expansion into the rapidly expanding credit secondaries sector. And they're not just dipping their toes in; they're diving right in with a dedicated global credit secondary platform. Leading the charge is Partner Henri Lusa, a private credit and credit secondaries veteran with over 17 years of experience. Based in London, Henri will helm a global team focused on building a diverse credit investment portfolio.
This initiative is a significant extension of CVC's already impressive secondaries platform, managing €17 billion in assets and offering tailored liquidity solutions. With over 20 years of experience in secondaries and credit, CVC is committed to providing investors with diverse access to top-notch private market opportunities. And the timing couldn't be better; the credit secondary market has seen volumes more than triple between 2020 and 2024, as both LPs and GPs seek flexible liquidity solutions.
But here's where it gets controversial... CVC Secondary Partners' new strategy leverages its established global network and impressive track record of over 200 transactions, involving 1,800+ fund interests and 70+ bespoke continuation vehicles. This network and expertise will be key to unlocking new opportunities in the high-growth credit secondaries market.
Rob Lucas, CEO of CVC, emphasizes the significance of this launch: "Building on our strong heritage in secondaries and deep credit expertise, we're harnessing the power of the CVC Network to tap into this dynamic market." Carlo Pirzio-Biroli, Managing Partner and Head of CVC Secondary Partners, adds, "As private credit matures, we see a unique opportunity to apply our expertise to this fast-growing segment. Active portfolio management and liquidity needs are driving growth, and we're well-positioned to provide liquidity solutions across private equity and credit secondaries."
The CVC Credit Secondaries strategy aims for attractive returns through a diversified portfolio of credit investments across Europe and the US, leveraging the $1.7 trillion private credit industry. By combining deep underwriting capabilities with global reach, CVC aims to deliver risk-adjusted returns, income generation, and enhanced downside protection. The inaugural Credit Secondaries vehicle is set to launch in 2026.
So, what do you think? Is CVC's expansion into the credit secondaries market a bold move or a risky venture? Share your thoughts in the comments; we'd love to hear your insights on this exciting development!
