Ground Report | New Delhi: What is CVC Capital; In a dramatic turn of events, CVC Capital Partners overtook Adani Group to acquire the Indian Premier League (IPL) Ahmedabad franchise for Rs 5625 crore. One of the active private equity investors in the sport, CVC Capital Partners has invested heavily in European and Asian markets – promoting volleyball, rugby unions, Formula One and MotoGP.
What is CVC Capital
CVC Capital Partners is a private equity and investment advisory firm that has invested heavily in European and Asian markets. CVC Capital Private Owners are also part of a group of companies responsible for the promotion of the FIA Formula One World Championship and the exercise of commercial rights to the sport. In addition, CVC Capital Private Owners holds a majority stake (63.4%) in F1 when it bought a 14.1% stake in SLEC held by Lehman Brothers in 2006.
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The company has diversified into other sports and in 2020, it acquired a 27 percent stake in Premiership Rugby – the first division of English clubs. This year, it added 14 percent of the Six Nations rights and 28 percent of the Pro14 tournament, bringing their total investment in the game to approximately €800 million.
CVC was founded in 1981
According to its website, CVC was founded in 1981 and is “a world leader in private equity and credit, with $125 billion in assets under management, $165 billion in committed funds, and a global network of 25 offices.” 16 across Europe and the Americas, and nine in the Asia Pacific region.”
While the company has found success in other sports disciplines, this will be the first time it will invest in cricket. With IPL creating a huge business model for the Indian and global markets, CVC is expected to benefit.
There were seven other bidders for the two new franchises, including Avram Glazer’s Lancer Capital. The Glazer family owns Manchester United.
“The tender process involved two interested bidders from outside India, emphasizing the global appeal of IPL as a sporting asset,” BCCI President Sourav Ganguly said. The BCCI had fixed a base price of Rs 20 billion for the new teams.