AlpInvest Partners, the private equity secondaries platform of The Carlyle Group, is bringing a $1bn collateralised fund obligation (CFO) to market, according to a report by Bloomberg citing sources familiar with the matter.
The transaction, arranged by Evercore, will be structured with multiple tranches, including a senior debt component and a subordinated first-loss piece. The vehicle is expected to be backed by cash flows from a pool of AlpInvest-managed secondaries funds, which invest in portfolios of existing private equity fund interests acquired on the secondary market.
The deal marks AlpInvest’s continued engagement with fund-level financing structures, following a similar-sized issuance completed last year. That transaction was secured against stakes in four AlpInvest-managed strategies, including secondaries, portfolio finance, and co-investments. It attracted capital from insurance companies, family offices, and other institutional investors.
CFOs and related fund finance instruments have seen growing adoption across the private capital landscape, offering institutional buyers – particularly insurers – an alternative route to access private equity exposures with more favourable regulatory capital treatment compared to traditional LP stakes. Recent issuers in the space include Thrivent Financial, Coller Capital, and Neuberger Berman.
