TMF Group acquired by CVC & Adia

The investment fund Abu Dhabi Investment Authority signs a definitive agreement with private equity firm CVC Capital Partners to acquire a significant minority stake in TMF Group. Announced in July 2022, the secondary transaction coincides with CVC rolling the administrative platform into a newly established continuation vehicle. The governance framework established by the minority recapitalization grants the Middle Eastern sovereign wealth fund a formal seat on the company's board of directors alongside the continuing sponsor. The structured transfer to a continuation vehicle materialized after initial plans for an initial public offering were halted due to adverse public market headwinds, including rising inflation, central bank rate increases, the war in Ukraine, and broader recessionary pressures. For TMF Group, which had previously been targeted for a strategic combination with Dutch tax administrator Intertrust NV before the latter was acquired by CSC, the private recapitalization secures flexible, long-term equity capital. At the time of execution, internal financial forecasts projected an adjusted EBITDA of €150–250M, reflecting an enterprise valuation multiple of 13.6x. The transaction provides the administrative services platform with continuous institutional backing to fund organic growth and expand cross-border compliance capabilities outside public equity volatility. The partnership enables the primary financial sponsor to provide liquidity to historical investors while maintaining operational continuity and strategic governance over the enterprise's next corporate cycle.

It is worth noting that the fund CVC took control of TMF Group through an LBO in 2017.