CVC earnings guidance disappoints, shares fall

Core Viewpoint - CVC Capital Partners has announced a disappointing near-term performance-related earnings outlook, leading to a decline in its share price. Financial Performance - The company forecasts performance-related earnings (PRE) of 600 to 700 million euros for 2026-2027, which is below analyst expectations of approximately 1.1 billion euros [2] - CVC anticipates an increase in PRE to 1.2 to 1.5 billion euros by 2028-2029 [2] - The adjusted after-tax profit for 2025 was reported at 873 million euros, slightly exceeding the expected 867 million euros [4] Asset Management - CVC expects fee-paying assets under management (FPAUM) to reach around 200 billion euros (approximately $231.92 billion) by the end of 2028 [1] - Realisations, which represent cash generated from successful disposals, amounted to 21.9 billion euros, reflecting a 67% increase year-over-year [3] Market Reaction - Following the earnings guidance announcement, CVC's shares fell by 6.9% [4] - The company plans to propose an additional dividend of approximately 0.235 euros per share, totaling 0.47 euros per share for the year, and will initiate a share buyback program of 350 million euros [5]