Premiership Rugby has confirmed it has sold a minority holding to private equity and investment advisory firm CVC Capital Partners.

CVC is understood to now be in control of just over a quarter (about 27 per cent) of the organisation, which owns and runs the premier domestic rugby union competition, the Gallagher Premiership.

The deal, worth "in excess of £200m", follows CVC's previous attempts to buy a 51 per cent majority share in Premiership Rugby, which was rejected by members earlier this year.

In a statement, Premiership Rugby described the deal as the "start of a new era for English professional club rugby".

“Around 18 months ago the Board endorsed a strategy to take club rugby to a new level,” said Premiership Rugby CEO Mark McCafferty.

“Since Premiership Rugby was formed in 1997, our owners have invested more than £400m to build up the clubs and the competition which today sees the Gallagher Premiership broadcast in more than 200 countries around the world.

"It was the perfect time for us to identify the right partner to help accelerate our next phase of growth.

"Further developing the global appeal and following for the Gallagher Premiership through investment in the product and fan experience is one of the main priorities for the partnership.”

According to Ian Ritchie, chair of Premiership Rugby, the funds from the deal will be ploughed into developing the sport of rugby.

“We have agreed that the proceeds from CVC's investment will be re-invested to drive continued growth in the sport, for the benefit of the fans, clubs and players," Ritchie said.

“The structure of the deal ensures that there is strong alignment of interest between CVC and the Premiership Rugby Clubs. CVC support our vision of growing the sport and we are looking forward to working closely with them to take Premiership Rugby to the next level.”