CapVest Partners, a London-based mid-market private equity firm, has successfully raised about $3.8 billion for a new continuation fund, securing significant backing from a robust syndicate of secondary investors. This fund values CapVest's radiopharmaceuticals platform, Curium, at approximately $7 billion, positioning it as one of the largest continuation vehicles raised globally this year, as reported by Bloomberg.
The investors backing this ambitious initiative include high-profile names such as TPG, ICG, CVC Secondary Partners, Goldman Sachs Asset Management, Ardian, and Abu Dhabi's Lunate. The rise of continuation funds has become increasingly notable in the private equity sector, especially as managers aim to retain high-performing assets longer in light of subdued exit markets. Data from Jefferies indicates that these types of funds accounted for nearly 20% of private equity exits in the first half of 2025, up from 13% the previous year.
For CapVest, this new fund represents a significant advancement into the upper echelon of secondary-led transactions, following closely on the heels of its €10 billion acquisition of the German pharmaceutical group Stada, which marks the firm's largest deal to date. Curium itself was formed in 2017 through the merger of IBA Molecular and Mallinckrodt’s nuclear medicine division.
The current transaction is described as a "CV-on-CV" or "CV-squared" deal, enabling CapVest to maintain ownership of Curium for several additional years. Despite the rarity of such structures in the market, similar approaches have been taken recently by firms like Accel-KKR and PAI Partners, showcasing a trend among private equity firms to optimize their investment strategies.
Looking ahead, the timeline for the closure of this continuation fund is expected to unfold in the coming months, allowing CapVest to further solidify its position in the secondary market. The implications for shareholders are promising, as the fund is likely to enhance the overall value of the assets held within it. Employees at Curium may also benefit from the extended ownership, as it could lead to greater investment in the company's growth and innovation.
As this transaction progresses, CapVest will need to navigate any potential regulatory scrutiny associated with the fund's establishment and the ongoing management of Curium, although no specific antitrust concerns have been announced at this stage. Overall, this strategic maneuver not only strengthens CapVest's portfolio but also exemplifies the evolving landscape of private equity as firms adapt to current market realities.