This article first appeared on GuruFocus .
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Fee-Paying AUM:Grew 9% year-on-year to EUR153 billion.
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Fee-Related Revenues:Up 9% versus the first half of '25 to EUR771 million.
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Fee-Related Earnings:Up 11% to EUR442 million, with an FRE margin of 57%.
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Performance-Related Earnings:Up 15% to EUR110 million.
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EBITDA:Increased 12% to EUR554 million.
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Profit After Tax:Up 10% to EUR434 million.
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Total Operating Expenses:Grew 7% year-on-year.
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Dividend Per Share:Up 12% year-on-year.
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Realizations:Up 19% compared to the first half of 2025.
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Gross Inflows:EUR11 billion in the first half.
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Deployment:EUR26 billion over the last 12 months to June.
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Value Creation:6% for PE and Infra in the first half; 8% for Europe, Americas.
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Portfolio EBITDA Growth:13% across all private equity funds over the last 12 months.
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Gross Cash:EUR645 million as of June 30, 2026.
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Long-Term Debt:Approximately EUR1.9 billion.
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Net Debt Leverage Ratio:1.2 times as of June.
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Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record realizations up 79% LTM with exits at highly attractive returns, including a 3.6x gross multiple and 26% gross IRR across private equity exits.
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Strong fundraising momentum across all platforms, with gross inflows of EUR11 billion and successful closes for Catalyst ($3.4B) and SOF VI ($9.3B), positioning well for Fund X.
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Fee-paying AUM grew 9% year-on-year to EUR153 billion, driven by 19% growth in credit, secondaries, and infrastructure, with a diversified platform reducing concentration risk.
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Financial performance improved with EBITDA up 12%, adjusted EPS up 11%, and dividend per share up 12%, supported by strong cash generation and a healthy balance sheet (net debt leverage at 1.2x).
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Portfolio companies delivered 13% EBITDA growth over the last 12 months, with value creation of 11%, reflecting effective sourcing and value creation strategies.
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Private wealth channel scaled rapidly, with evergreen structures reaching EUR7 billion in aggregate value, up 4x year-on-year, and net inflows of EUR2.5 billion in H1.
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Credit platform shows strong performance with low default rates (0.2% in direct lending) and expansion into new areas like asset-based lending via the Marathon acquisition, enhancing growth prospects.
Negative Points
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Deployment pace in credit was muted in H1 due to lower industry-wide new deal activity, which could temporarily slow growth in that segment.
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Fee-paying AUM in private equity remained flat year-on-year, reflecting strong realizations offset by inflows, indicating potential stagnation in the core PE business.
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The FRE margin of 57% in H1 was partly boosted by EUR22 million of catch-up fees, which are non-recurring and may not be sustainable in the second half.
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Total operating expenses grew 7% year-on-year, with expectations of slightly below 10% growth for the full year, potentially pressuring margins if revenue growth slows.
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The effective tax rate increased to 20.5% from last year, which could reduce net profit growth if it continues to rise.
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Fund X activation is not expected until H1 2028, with deployment at 65% for Fund IX, meaning a significant earnings step-up is still two years away, creating a gap in growth momentum.
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The integration of Marathon and the launch of new products like credit secondaries carry execution risks, and the competitive environment for insurance mandates is intense.
Q & A Highlights
Q: On Fund X, given the strong DPI, what level of re-up rate would equate to raising a fund the same size as Fund IX? A: Robert Squire (Head of Client and Product Solutions) stated that the target size and hard cap will be announced at the Annual Investor Meeting in September. He expressed confidence in achieving industry-leading re-up rates, underpinned by a proven underwriting process where every line item is re-underwritten over 18 months. He noted that due to renewed appetite for Europe, existing clients will likely contribute more to Fund X than they did to Fund IX.
Q: How should we think about the blended management fee rate margin over the next 2-3 years as the mix shifts away from PE, and how sustainable is the 57% FRE margin in H1? A: Fred Watt (CFO) explained that the blended fee rate is expected to remain around 1% of fee-paying AUM. While credit carries lower fees, secondaries and infrastructure have higher fees than the group average, keeping the overall blend stable. On the FRE margin, he noted that excluding the EUR22 million of catch-up fees, the H1 margin would have been 56%, which is in line with expectations for the second half of the year.
Q: Can you provide more granularity on the drivers of the MOIC progress, and are there discussions about changing the geographic allocation of Fund X between Europe and the Americas? A: Fred Watt (CFO) attributed the majority of the MOIC uplift to real earnings growth at the portfolio level, with some additional contribution from realizations above December marks. Rob Lucas (CEO) addressed the geographic allocation, stating that investments are made bottom-up based on the best opportunities. He noted that the Americas exposure has historically been in the 15%-20% range and expects this to remain similar, despite increased investor appetite for Europe.
Q: On insurance, how unique is the integration between insurance and credit teams, and was the AIG partnership a one-off? A: Peter Rutland (President) stated that the close integration of insurance and credit expertise is a key differentiator for CVC. He confirmed that the company has big ambitions for the insurance route to market and expects the AIG partnership to be the first of several strategic partnerships in the coming years.
Q: What is the current deployment pipeline for Fund IX, and at what investment level will Fund X be activated? A: Rob Lucas (CEO) reported that Fund IX is currently 65% deployed with a good pipeline, though the flow rate can be variable due to market volatility. He emphasized the firm's selectivity and maintained the three-to-four-year investment cadence. Fund X activation is expected in the first half of 2028, typically when the prior fund reaches around 95% deployment.
Q: On the EUDL V direct lending fund, can you provide context on the EUR5 billion target and the momentum you're seeing with LPs? A: Robert Squire (Head of Client and Product Solutions) clarified that the EUR5 billion target is for unlevered equity, with a reasonable proportion levered 1:1 and large SMAs sitting alongside. He noted that EUDL IV was very successful at north of EUR10 billion and expressed hope that EUDL V can conclude larger than its predecessor.
Q: How will recent exit announcements, particularly in Fund VII, flow through to performance fees in H2 2026? A: Fred Watt (CFO) explained that some announced realizations are still awaiting regulatory approval, which prevents IFRS recognition. He reaffirmed guidance for unchanged total PRE in 2026, but noted it will be more second-half weighted. Rob Lucas (CEO) added that Fund VII has a 50% allocation to the PLC (15% through to the PC), while Fund VIII will have a 100% allocation (30%).
Q: Are there any indications of slowing demand for wealth products, and how do you see deployment opportunities in credit given the sector dislocation? A: Robert Squire (Head of Client and Product Solutions) reported net inflows into all evergreen products in both Q1 and Q2, with strong momentum driven by the European nexus. Peter Rutland (President) acknowledged muted activity in the first half due to lower industry-wide deal activity, but viewed this as temporary, emphasizing disciplined underwriting and a focus on the best opportunities.
Q: What is the next step for the wealth channel, and will you expand to smaller institutions with a full-platform approach? A: Robert Squire (Head of Client and Product Solutions) stated that there is plenty of runway in the private wealth channel, with many smaller institutions already investing in closed-end structures. He sees these vehicles as the linchpin to the defined contribution retirement space, already evident in Europe with ELTIF and LTAF, which could broaden the aperture to include smaller institutions over time.
Q: Can you provide a breakdown of the MOIC progress between earnings growth, realizations, and multiple expansion? A: Fred Watt (CFO) stated that the vast majority of the MOIC uplift is coming from real earnings growth, as evidenced by the EBITDA and revenue growth figures on slide 7. He also noted some contribution from realizations, as the firm is realizing assets above the marks held in December, but emphasized that underlying earnings growth is the biggest driver.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
