Carlyle AlpInvest has completed the final close of its second dedicated single-asset continuation vehicle fund, raising $1.7bn and exceeding its original $1bn target, as investor appetite for GP-led secondaries strategies continues to grow.
The fund, AlpInvest Atom Fund II, closed at its hard cap and increases Carlyle AlpInvest’s total investment capacity for single-asset continuation vehicle (SACV) transactions to $7bn when combined with the firm’s existing secondaries vehicles, evergreen funds and related sidecar capital.
The fundraising attracted commitments from a broad range of institutional investors across 26 countries, including pension funds, sovereign wealth funds, insurance companies, banks, endowments, foundations and family offices.
The new vehicle will continue Carlyle AlpInvest’s strategy of investing in sponsor-backed companies through single-asset continuation vehicle transactions, primarily in North America and Western Europe. The strategy enables private equity sponsors to retain ownership of high-performing portfolio companies while providing existing fund investors with a liquidity option.
Single-asset continuation vehicles have become one of the fastest-growing segments of the GP-led secondaries market as private equity firms seek flexible exit solutions amid a slower traditional distributions environment.
Carlyle AlpInvest said the fund will leverage its broader secondaries platform, portfolio finance capabilities and primary fund investment business to source and evaluate transactions. The firm believes its long-standing relationships with private equity managers and extensive proprietary data on private companies provide a competitive advantage when underwriting continuation vehicle deals.
The manager has been investing in single-asset continuation vehicles since 2018 and has committed approximately $7bn across 31 transactions to date.
