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President Donald Trump’s “chopping and change” on US tariff policy places emphasis on global trading, and Private Equity Group CVC said he is warned he is cautious about his prospects for selling portfolio companies this year.
Fred Watt, chief financial officer of the Amsterdam-listed acquisition group, said the lack of clarity on US tariffs had contributed to slowing the trading market, according to a change in fate after the market “hopes to be great” when Trump was elected on Thursday.
As the company’s M&A and initial public services remained restrained, Watt told the Financial Times.
Many in the industry predicted that Trump’s election would spark a much-anticipated trading boom, but instead, a stop-start policy on tariffs led to economic uncertainty and reduced enthusiasm for trading.
This year has so far one of the worst recent starts for trading, with stock prices falling sharply in some of the largest private equity groups in the US.
KKR has been down about 30% since late January, with Blackstone dropping by about 16% and Apollo dropping by about 17%. Carlisle Group recently said its paid assets fell in the fourth quarter.
In its annual results on Thursday, CVC reported that in 2024, it withdrawn portfolio investment to win 13.1 billion euros, more than double the previous year’s total. The total for 2025 is expected to be based or slightly higher than last year’s levels “based on current market conditions.”
Total cash returned from investment sales fell 61% from the first half to the second half of 2024 due to “hitomi” sales from large companies.
It beat the expectations of analysts’ total payout assets, ending the year with assets of 147.3 billion euros, an increase of 50% the previous year. Revenue from management fees rose 23% to 1.333 billion euros.
Growth was driven in part by the revitalization of the flagship 26.8 billion euros in European and American acquisition fund CVC in May last year, with 13 investments made in 2024.
“Generally speaking, it’s a difficult or difficult time to be the best time to acquire assets,” Rob Lucas chief executive told FT, adding that the US event has made it seem like a “more interesting place” for Europe to invest in.
Last year, CVC closed the purchase of infrastructure investment firm DIF Capital Partners.
Private credit companies are looking for private capital groups that are purchased in the US and focused on real estate outside of Europe.
On Thursday, he said he was also interested in partnerships with insurance companies to help manage assets, a sector trend.
CVC beat its performance-related earnings forecast, increasing 5% to 182 million euros. That exit has averaged four times the cash of investors last year.
The group’s shares rose 1.5% in the morning on Thursday. The CVC was released last April. The stock has grown 40% at IPO prices, but has so far dropped 7% this year.
