The Carlyle Group is to acquire AlpInvest from APG and PGGM through a strategic joint venture with the management of AlpInvest. The transaction will comprise 100% of the share capital of AlpInvest and will enable AlpInvest, APG and PGGM to pursue their own respective multi-client strategies.
APG and PGGM will continue to be the anchor clients of AlpInvest. Financial terms of the transaction, which is subject to regulatory approval and is expected to close in March 2011, have not been released.
Volkert Doeksen, CEO of AlpInvest, says: “Carlyle is a strong, long-term partner for AlpInvest. This is critical given the EUR32 billion in commitments we already manage today on our investors’ behalf. For management and our employees, Carlyle is a partner with compatible goals and a proven track record in building a world-class asset management firm. Importantly, Carlyle’s global network and respected brand will help AlpInvest broaden our investor base and product scope.”
AlpInvest is one of the world’s largest investors in private equity managing EUR32.3 billion (USD43.3 billion) mainly on behalf of APG and PGGM through a global private equity fund-of-fund program and related direct investment (co-investment) activity in addition to secondaries and mezzanine. Both pension fund asset managers will extend their commitment as clients by granting additional investment mandates totaling EUR10 billion (USD13.5 billion) for the period 2011-15 to AlpInvest’s various investment programs.
David M Rubenstein (pictured), Carlyle Co-founder and Managing Director, adds: “We are so pleased to begin this long-term partnership with AlpInvest, APG and PGGM. Expanding the scope of our global asset management business will create new opportunities for Carlyle investors who seek a proven fund-of-funds platform. We have the highest regard for Volkert and his investment team and believe Carlyle will be a great long-term home for AlpInvest.”
The new joint venture ensures the operational and investment independence of AlpInvest. AlpInvest will retain complete discretion over all investment decisions, which will be made by an investment committee consisting solely of AlpInvest investment professionals. AlpInvest will also maintain an information firewall with Carlyle to provide safeguards for general partner, fund or deal-specific information. Upon closing, the AlpInvest board will comprise an equal number of members of AlpInvest and Carlyle and will be chaired by AlpInvest CEO Volkert Doeksen. The other AlpInvest members will be Paul de Klerk, CFOO, and Tjarko Hektor, Director and Observer.
AlpInvest will continue to accommodate fully the investment policies of APG and PGGM and their respective clients, notably regarding Environmental, Social and Governance-matters. In addition Carlyle, AlpInvest, APG and PGGM have agreed to pursue a collaborative initiative through which they will share ideas and practices regarding how to enhance Carlyle’s integration of environmental, social and governance issues into its controlling private equity investments throughout its portfolio.
Dick Sluimers, CEO of APG, says: “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.”
