Goldman, Morgan Stanley Prep €1 Billion for CVC’s Multiversity
- Debt raise to back Multiversity’s move into continuation fund
- High-yield bond offering is expected to follow the financing
This article is for subscribers only.
Banks including Morgan Stanley and Goldman Sachs Group Inc. are lining up nearly €1 billion ($1.1 billion) of debt financing that will allow buyout shop CVC Capital Partners to hold on to Multiversity, one of its university investments, according to people familiar with the matter.
The bridge loan will support CVC’s plan to move the Italian university group into a so-called continuation fund. Continuation funds are one of the tools deployed by investment firms to manage their portfolio companies, by allowing sponsors to roll over assets bought through older funds into a new vehicle. The process enables investors to either hold on to the assets for longer than the typical investment cycle, or to cash out of their stakes.