CVC is said to be considering a bid for a minority stake in the state-owned postal service as part of government plans to part-privatise the carrier, according to The Sunday Telegraph. CVC did not comment on the report.
The equity firm is not new to investing in European postal services, having bought a 22% stake in Post Danmark in 2005, followed by a deal to buy half of Belgian's postal service.
Private equity has made increasing inroads into DM-related services, with agencies such as Gyro expanding internationally thanks to private equity funding.
The plan to sell a minority share in Royal Mail, as it faces both foreign-owned competitors in the deregulated UK postal market and a large pension deficit, was announced by business secretary Peter Mandelson in December.
It followed publication of the Hooper Report, which concluded that Royal Mail's current situation was "untenable" because of its pension commitments and the challenge posed by digital communications.
Following Mandelson's announcement, Royal Mail rival TNT was understood to be the main contender to take a minority stake in the business.
The Dutch company has the support of Lord Mandelson, much to the dismay of some backbench Labour MPs. A report in yesterday's Mail on Sunday claimed that Mandelson "brushed aside protests" of MPs at a "stormy" private meeting last week.
Founded in 1981, CVC is based in Luxembourg with offices in Europe, Asia and the USA.
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