CVC Capital Partners ("CVC") today announces the completion of three exits spanning across Taiwan, Japan, and the Philippines during December 2014. The three exits returned approximately US$ 1 billion in capital to investors, bringing CVC Asia's total capital return to investors in 2014 to US$2 billion.
On 15 December 2014, CVC completed the partial exit from TechnoPro Holdings Inc. (TechnoPro") through an initial public offering on the Tokyo Stock Exchange. This IPO represents the largest domestic offering in 2014 in the Japanese market with the deal value over Yen 53 bn. In April 2012, CVC funds acquired Technopro, the leading Japanese engineering staffing business with about 10,000 fulltime engineers, from a larger staffing conglomerate. CVC and management implemented a variety of initiatives to improve recruitment and retention of engineers and improve operating efficiencies. Since the acquisition, the operating profit of the business has grown from Yen 4.0 bn to Yen 7.0 bn this fiscal year
On 17 December 2014, CVC agreed the sale of its stake in Rizal Commercial Banking Corporation ("RCBC") to Cathay Financial Insurance Co. Ltd. ("Cathay Life"). CVC acquired a minority stake in RCBC in September 2011. CVC worked with management to further expand the Bank's consumer and retail segments while also improving its capital position. Founded in 1960, RCBC is one of the largest universal banks in the Philippines in terms of assets and deposits and offers a range of commercial, retail and corporate banking products and services with total consolidated assets of P422 billion as of the end of 2013.
On 19 December 2014, CVC completed the full exit from Nien Made through a successful sale to 37 investors in a pre-IPO share sale. CVC, alongside the founding families of Nien Made, took the Taiwan-listed company private through a joint buyout in October 2007. Following the investment, CVC, the founding families and senior management, worked closely together to improve Nien Made's product mix, strengthen its distribution channels, and lower manufacturing costs. Nien Made was founded in 1974 and has become the world's number one branded shutters manufacturer. Over the past 4 years, the EBITDA of the business increased by over 60%.
These three exits returned approximately US$ 1 billion in capital back to CVC Asia funds. In addition, earlier this year CVC Asia successfully completed a number of other full and partial realizations including P.T. LinkNet, Jintian Pharmaceuticals, SPi Global, Mantra and Matahari, which also returned a further US $1 billion of capital to investors.
CVC's leading position in the region and strong track record has been widely recognised over the last year from the investment community, with the team receiving the "Fundraising of the Year Award" for the Large Cap category at the 2014 AVCJ Private Equity and Venture Capital Awards. CVC took less than a year to successfully raise US$3.5 billion for its fourth Asia Pacific fund, CVC Capital Partners Asia Pacific IV L.P. ("Fund IV"). To date, CVC has raised over US$ 10 billion in the Asia region and completed over 49 investments.