Cinven Moves Funds Management to Guernsey, Becomes Partnership

Cinven Ltd., the U.K. private equity firm that owns Pizza Express, moved its fund-management division to Guernsey, a decision that may help reduce its tax bill as it raises a 5 billion-euro ($6.6 billion) leveraged buyout fund.

The change, implemented in the past weeks, also includes switching the structure of the company to a limited-liability partnership, Vanessa Maydon, a spokeswoman for the London-based firm, said by e-mail today. The move is intended to help Cinven better manage partners’ appointments and departures, she said.

“The limited liability partnership structure is not a way of avoiding employer National Insurance” contributions, Maydon said. “Partners will now officially be self-employed and will, therefore, have to pay National Insurance themselves,” so “the tax contribution from the firm and its partners in the U.K. is likely to go up substantially.”

Financial News reported the change earlier today. The London-based firm had raised almost half of the 5 billion euros it is seeking for European leveraged buyouts, people with knowledge of the fundraising said in November.

To contact the reporters on this story: Anne-Sylvaine Chassany in London at

To contact the editor responsible for this story: Edward Evans at

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