The co-founder of CVC Capital Partners could be paid £130m when the company he helped set up three decades ago goes public.
Donald Mackenzie is cashing out a big chunk of his 7 per cent stake when the private equity firm lists in Amsterdam later this week.
It appears the Scot will sell up to £130m of the £885m stake.
Steve Koltes, another co-founder, is on track to receive a £30m bonanza by selling part of his 4.4 per cent stake, which is worth up to £563m in total.
CVC yesterday unveiled details of the initial public offering (IPO), which will see its shares valued at between £11.20 and £12.90, valuing the entire company at between £11.2 billion and £12.9 billion.
Payday: CVC Capital Partners co-founder Donald Mackenzie will cash out a big chunk of his 7% stake when the private equity firm lists in Amsterdam later this week.
Banks working on the offering said it has been oversubscribed several times, suggesting strong demand.
Mackenzie and Koltes, along with third founder Rolly van Rappard, founded CVC Capital Partners in 1993, when it was spun off from Citicorp Venture Capital London.
Headquartered in Luxembourg, it has become a private equity powerhouse with a global network of 29 offices and £160bn in assets under management.
It owns stakes in watch brand Breitling, Six Nations Rugby and RAC, the motorsport organisation.
Mackenzie’s windfall will add to the cash wealth of the financier, who reportedly hosts friends and family on a 170ft superyacht called Grace and owns an 866-acre property in Dorset, as well as a collection of racing cars.
Jersey-based Mackenzie, who worked at investment firm 3i before joining Citicorp in 1988, led perhaps its most high-profile deal when it acquired a majority stake in Formula One in 2006.
The deal propelled the chartered accountant and University of Dundee graduate to the center of one of the world’s most glamorous sporting organisations.
CVC eventually sold F1 to US media giant Liberty Media, controlled by billionaire John Malone, in a deal valued at £6.5bn in 2016.
In February this year, CVC announced that Mackenzie would step down from an active role in the company “to focus on his private interests.” A similar move by Koltes followed in 2022.
Yesterday’s announcement was the latest step in completing CVC’s long-awaited initial public offering (IPO). Previous IPO offerings have been abandoned twice in the past, in 2022 and 2023, due to market uncertainty.
Since then, a number of companies have gone public in Europe, taking advantage of the recovery in investor sentiment.
This contrasts with the London market, where its cheap value stocks are snatched up by foreign predators.