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AlpInvest Partners receives EUR2bn mezzanine mandate

AlpInvest Partners has received a EUR2bn mezzanine mandate from its shareholders, the pension funds ABP and PGGM, representing one of the largest mezzanine mandates ever awarded.

AlpInvest Partners has received a EUR2bn mezzanine mandate from its shareholders, the pension funds ABP and PGGM, representing one of the largest mezzanine mandates ever awarded.

The three-year investment mandate represents a significant increase from the previous 2004 mandate worth EUR700m, invested mainly in the US, whereas the new mandate will be invested globally with an expected 50 per cent allocation to Europe.

The firm envisages investment of 75 per cent of the capital in direct investments and 25 per cent in funds. ABP and PGGM had EUR215bn and EUR85bn of assets under management respectively at the end of June.

‘We are excited by this significant new mezzanine mandate and the trust and support of our core sponsors ABP and PGGM,’ says AlpInvest managing partner and chief executive Volkert Doeksen. Given the market dynamics of today we consider mezzanine a particularly well placed investment product.’

The expansion of AlpInvest’s mezzanine activity in Europe is the catalyst for the opening of an office in London, scheduled for the first quarter of next year, The office is intended to support the development of AlpInvest’s mezzanine positioning by ensuring close proximity to key players in the market. The office will be headed by Erik Bosman, head of mezzanine business in Europe.

Adds Doeksen: ‘This mezzanine mandate offers us the opportunity to participate in other parts of the capital structure and enables us to develop further our strong relationships with private equity sponsors leading the equity side of the transaction. In today’s markets, we believe that is a value-added proposition.’

AlpInvest Partners has some EUR40bn of assets under management, approximately 80 per cent of which is invested in private equity funds globally through primary commitments and secondary transactions, with the remainder invested directly in companies as a co-investor in Europe, the US and Asia. AlpInvest has more than 60 investment professionals based in Amsterdam, London, New York and Hong Kong.

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