Private equity firm CVC Capital Partners is selling part of fund services provider TMF Group from one of CVC’s funds to another, and part to Abu Dhabi’s sovereign wealth fund. Pictured: TMF’s offices in Amsterdam, seen in 2019. Photo: Shutterstock.

Private equity firm CVC Capital Partners is selling part of fund services provider TMF Group from one of CVC’s funds to another, and part to Abu Dhabi’s sovereign wealth fund. Pictured: TMF’s offices in Amsterdam, seen in 2019. Photo: Shutterstock.

CVC Capital Partners has sold TMF Group, partly to itself and partly to a UAE-based sovereign wealth fund.

Luxembourg-based private equity outfit CVC Capital Partners has struck a deal to shift partial ownership of the corporate and fund services provider TMF Group from CVC’s Europe/Americas fund to its Strategic Opportunities fund.

As part of the same deal, CVC has sold a “significant minority stake” to the Abu Dhabi Investment Authority, an Adia representative told Delano. Adia would not confirm the exact percentage, but the Financial Times on 25 July that it was a “near 50% stake” which will give Adia a seat on TMF’s board.

Adia would not comment on the value of the transaction. The FT said the “deal values the company at about €3bn.”

According to the FT, CVC made the move now because “market turmoil makes listings and external sales more difficult” and that its Strategic Opportunities fund “can hold companies for longer”.

CVC decline to comment.

“Adia’s investment will support the strong performance and positive growth trajectory demonstrated by TMF since CVC Funds’ initial investment in 2018,” the Adia rep stated.

On its website, TMF said that it serves “almost half the top 300 private equity firms” globally and a large number of Fortune Global 500 and FTSE 100 companies. TMF said it has roughly 9,000 employees in 85 jurisdictions. According to Statec, it had 330 employees in Luxembourg at the beginning of the year.

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