CVC commits $1.1 billion to strengthen secondary investment strategy through M&G fund

CVC Capital Partners has pledged $1.1 billion to a forthcoming private equity secondaries fund managed by M&G Investments, significantly expanding its presence in the secondary investment market. The agreement, reported by PitchBook, enables CVC to gain exposure to a diversified portfolio of existing private equity assets through M&G’s 2025 vehicle. The move reflects CVC’s strategy to scale its secondaries platform at a time when investors are increasingly seeking liquidity solutions in private markets.

CVC Capital Partners advances strategic expansion in secondary investment

The commitment allows CVC to purchase interests in private equity funds and companies that have already been acquired by other investors. By entering at a later stage in the investment lifecycle, CVC can access more mature assets while providing liquidity to sellers looking to rebalance their portfolios. The transaction represents one of the larger recent allocations in the secondary space and highlights the growing institutional appetite for this segment of the market.

Private equity secondaries have gained prominence as traditional exit routes, such as public listings and trade sales, have slowed. In this environment, secondary funds provide an alternative mechanism for capital movement without requiring companies to change ownership operationally.

Growth of private equity secondaries strengthens diversified portfolio strategies

Secondary investing differs from traditional private equity in that it focuses on acquiring existing stakes rather than funding new buyouts. Investors who originally committed capital to a fund may decide to sell their positions before the fund reaches maturity. Secondary buyers step in to purchase those interests, offering liquidity while assuming the remaining exposure to the underlying assets.

CVC’s sizeable allocation suggests confidence in both the resilience of private equity portfolios and the structural growth of the secondaries market. By partnering with M&G, the firm can access a pipeline of transactions sourced by an established asset manager with experience in structuring complex secondary deals. This collaboration allows CVC to expand efficiently without building every capability internally.

Market participants note that the appeal of secondaries lies partly in improved visibility. Because the assets are typically further along in their development, buyers may have clearer performance data compared to early-stage primary commitments. At the same time, sellers can adjust their asset allocations, manage liquidity pressures, or meet regulatory requirements.

The expansion of secondary strategies has also been influenced by broader macroeconomic factors. Higher interest rates and volatile equity markets have slowed distributions from private equity funds, creating what many describe as a liquidity bottleneck. As a result, institutional investors such as pension funds and insurers are increasingly turning to the secondary market to manage cash flow and portfolio exposure.

For CVC, the transaction aligns with a broader push to diversify its investment capabilities beyond traditional buyouts. Strengthening its secondaries platform provides flexibility in deploying capital across different market cycles while reducing reliance on new deal origination alone.

M&G Investments partnership reflects long-term strategic expansion in private markets

CVC is one of the largest global private markets managers, overseeing investments across private equity, credit, infrastructure, and secondaries. In recent years, the firm has taken deliberate steps to broaden its investment toolkit, including expanding dedicated teams focused on acquiring secondary interests. This latest commitment builds on that foundation and reinforces its intention to remain active across multiple segments of private markets.

M&G, headquartered in the United Kingdom, manages assets for institutional and retail clients worldwide. Its private markets division has been active in sourcing and executing secondary transactions, an area that has evolved significantly over the past decade. What was once considered a niche strategy has become a mainstream component of portfolio management for large investors.

Industry data indicates that secondary transaction volumes have increased steadily, particularly during periods of economic uncertainty. As private equity funds extend holding periods due to slower exit markets, secondary deals provide an avenue for investors to adjust exposures without waiting for full fund wind-downs. This structural shift has contributed to the rise of multi-billion-dollar vehicles dedicated exclusively to secondaries.

CVC’s $1.1 billion commitment to M&G’s upcoming secondary fund underscores the accelerating importance of liquidity solutions within private equity. By allocating substantial capital to acquire existing fund interests, CVC positions itself to benefit from more mature assets while supporting market participants seeking flexibility. As private markets continue to adapt to changing economic conditions, secondary strategies are likely to remain a central feature of institutional investment portfolios.