• Strategic opportunities fund will have a 15-year lifespan
  • Joins firms such as Carlyle trying to raise similar funds

CVC Capital Partners, Europe’s largest private equity firm, is set to close on $5 billion in new funds for its strategic opportunities vehicle, people familiar with the matter said.

The new pool is designed for long-term investments and is expected to produce annual returns of 12 percent to 14 percent, said the people, who asked not to be identified because the information is private. Backers include the Government of Singapore Investment Corp., a part-owner of CVC, said the people. The fund will have a 15-year lifespan, one of the people said.

A representative for CVC declined to comment.

The pool will let investors put capital to work for longer than the private-equity industry’s typical five-year investment horizon in exchange for lower fees and returns. Carlyle Group LP has raised more than $3 billion for a similar pool, people familiar with the matter said this month.

CVC has already made two investments for the pool, a 50 percent stake in U.K. roadside assistance operator RAC Group Ltd. and highway service station operator Moto Hospitality Ltd., according to the company’s website.

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