US private equity firm Carlyle has won the race to acquire Dutch private equity fund of funds investor AlpInvest from its pension fund owners.
APG and PGGM, which manage the private equity investments of two large Dutch pension funds, are to continue to commit capital to AlpInvest, pledging an additional €10bn over the next four years as part of the deal.
“Expanding the scope of our global asset management business will create new opportunities for Carlyle investors who seek a proven fund-of-funds platform,” said Carlyle co-founder David Rubenstein.
AlpInvest has €46bn under management, including €32.3bn in private equity assets, mainly for APG and PGGM. The firm invests billions of euros a year in private equity funds, and often makes directs investments into the companies that its chosen funds invest into, as well as investing in funds through the secondary market and in junior debt.
APG and PGGM decided that an independent private equity organisation would be better suited to managing pension fund assets.
The AlpInvest board of directors will comprise an equal number of AlpInvest and Carlyle members, and will be chaired by the fund of funds’ CEO, Volkert Doeksen, while the investment committee will consist exclusively of AlpInvest personnel. The firm is to maintain an information firewall with its new owner to provide safeguards for GP, fund or deal information.
APG CEO Dick Sluimers said, “We welcome this new partnership, which fits in with APG’s vision on private equity investments and which will sustain and develop the activities of AlpInvest. In ten years’ time, AlpInvest has grown into a top tier global private equity investor for the pension funds we service and this new partnership ensures a durable collaboration for the years to come.”
The deal is the latest move by Carlyle into diversified financial services, after taking a majority stake in hedge fund Claren Road Asset Management towards the end of last year.
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