| AlpInvest Partners | |
| Type: | Subsidiary |
| Predecessor: | NIB Capital |
| Location: | New York, New York Amsterdam, Netherlands London Hong Kong San Francisco, California Indianapolis, Indiana Tokyo |
| Industry: | Private Equity |
| Products: | Fund investments, Secondaries, Co-Investments, Alternative Credit |
| Assets: | $63 billion (December 31, 2022)[1] |
| Num Employees: | 180 (2020) [2] |
| Parent: | The Carlyle Group |
| Homepage: | www.AlpInvest.com |
| Footnotes: | +US$85 billion in capital since inception [3] |
AlpInvest Partners is a global private equity asset manager with over $85 billion of committed capital since inception as of December 31, 2022. The firm invests on behalf of more than 450 institutional investors from North America, Asia, Europe, South America and Africa.
AlpInvest operates three investment teams focused on private equity: Primary Fund Investments, Secondary and Portfolio Finance investments and Co-Investments.
AlpInvest pursues investment opportunities across the entire spectrum of private equity including: large buyout, middle-market buyout, private credit, venture capital, growth capital, mezzanine, distressed and energy investments, including sustainable energy investments.
As of the end of 2022, the firm had invested in more than 600 private equity funds managed by more than 325 private equity firms. According to the PEI 300, AlpInvest ranked among the 50 largest private equity firms globally.[4]
Since 2011, AlpInvest has operated as a subsidiary of The Carlyle Group, a global private equity firm. Prior to 2011, AlpInvest has been owned through a joint venture of its two clients, the Dutch pension funds (ABP and PFZW).
Founded in 1999, AlpInvest has offices in New York, Amsterdam, London, Hong Kong, San Francisco, Indianapolis, Singapore and Tokyo with over 100 investment professionals and over 175 employees.
With over $55 billion of funds under management, AlpInvest is one of the largest investors in the private equity asset class globally.[5] [6] [7] AlpInvest pursues investment opportunities across the entire spectrum of private equity including: large buyout, middle-market buyout, venture capital, growth capital, mezzanine, distressed and sustainable energy investments. AlpInvest also invests across the range of private equity investment channels:
AlpInvest invests primarily in private equity limited partnerships and effectively acts as a fund investor, making commitments to private equity funds globally. Among the most notable firms with which AlpInvest is invested include: Kohlberg Kravis Roberts, Blackstone Group, Providence Equity Partners and TPG Capital as well as many of the leading middle-market private equity firms and venture capital firms.[8]
AlpInvest will invest with these firms either by making commitments to new investment funds or by purchasing funds through the private equity secondary market. AlpInvest is one of the largest private equity fund investors and is also among the largest and most active and experienced investors in private equity secondaries.
AlpInvest also invests directly alongside some of the largest private equity investors through an active co-investment program and will make mezzanine debt investments into companies owned by financial sponsors.[9]
Following this spin-off of its European middle market leveraged buyout platform, which was subsequently renamed Taros Capital[10] AlpInvest, by itself, no longer makes control investments directly in privately held companies, but rather invests alongside selected private equity managers.
AlpInvest as it is currently known, was established in 1999 as an initiative by its two sponsors, the Dutch pension funds ABP and PFZW (then PGGM), to create an independent and professional manager for their private equity allocations.[11]
AlpInvest's predecessor, NIB Capital Private Equity, originally operated as one integrated investment firm with distinct teams focusing on fund investments as well as lead buyout investments in mid-sized companies located in the Benelux and Germany. As the firm evolved, AlpInvest shifted its focus toward an expansion of its investment management business.
In 2000, AlpInvest expanded its investment platform, by creating a dedicated equity co-investment team to invest in transactions alongside its core private equity managers. The following year, in 2001, the firm began a formal effort to make mezzanine investments. A year later, in 2002, AlpInvest launched a secondary investment platform, which has emerged as one of the largest buyers of private equity assets in the secondaries market.
The following is a timeline of significant milestones:
In recent years, AlpInvest has won several industry awards as a limited partner.
| Year | Award | Publication | Ref. | |
|---|---|---|---|---|
| 2013 | Secondaries Firm of the Year | Private Equity International | [24] | |
| 2013 | Fund of Funds of the Year | Private Equity International | ||
| 2012 |
| Towers Watson, Financial Times | [25] | |
| 2008 | Limited Partner of the Year | Private Equity International | [26] | |
| 2008 | Most Influential European Limited Partner | Private Equity News | [27] | |
| 2007 | Limited Partner of the Year | Private Equity International | [28] | |
| 2007 | Most Influential European Limited Partner | Private Equity News | [29] | |
| 2007 | Thomson Financial's Acquisitions Monthly | [30] | ||
| 2006 | Limited Partner of the Year | Private Equity International | ||
| 2006 | Financial News | [31] | ||
| 2005 | Limited Partner of the Year* | Private Equity International | [32] |
AlpInvest is among the largest investors in private equity funds, globally, historically allocating as much as €4 billion per year to leveraged buyout (large-cap, middle-market, lower middle market), venture capital and special situations funds, among other strategies. AlpInvest maintains relationships with many of the leading managers in difficult to access segments of private equity. In many cases, AlpInvest is a strategic investor and tends to be among the largest investors in each fund in which it invests. AlpInvest's funds team is made up of more than 25 professionals based globally in Europe, North America and Asia.
AlpInvest's secondary investments group focuses on the purchase of existing portfolios of private equity assets.
In the secondary market, AlpInvest operates as an independent investment group with a large dedicated team, comparable to other secondary firms and is one of the largest buyers of private equity assets in the secondaries market.[33] AlpInvest's secondary investments include purchases of limited partnership interests, spin-outs of captive private equity groups, stapled secondary transactions, securitizations, joint ventures and secondary direct transactions.
Although most secondary transactions are kept confidential, the following transactions have been disclosed:[34]
| Date | Deal Description | Ref. | |
|---|---|---|---|
| 2008 | AlpInvest, together with Goldman Sachs Capital Partners and CPP, purchased a portfolio of interests in 32 European companies managed by AAC Capital Partners from ABN AMRO for $1.5 billion. | [35] [36] | |
| 2008 | AlpInvest, together with Goldman Sachs, purchased $400 million of interests in legacy investment funds managed by Court Square Capital Partners from Citigroup. | [37] [38] | |
| 2008 | AlpInvest, together with HarbourVest Partners, Pantheon Ventures, Partners Group, Paul Capital Partners, Portfolio Advisors and Procific completed a takeover of Macquarie Capital Alliance Group in one of the first public to private transactions of a publicly traded private equity company completed by secondary market investors. | [39] [40] | |
| 2006 | AlpInvest underwrote the equity of a $500 million newly formed vintage fund-of-funds consisting of approximately 40 underlying private equity partnerships in a joint venture with Swiss Re and Horizon 21, a fund manager. | [41] | |
| 2006 | AlpInvest, together with Coller Capital and Goldman Sachs underwrote the equity tranche of Astrea, an $800 million securitization, of 46 private equity fund interests owned by Temasek, a Singapore-based sovereign wealth fund. | [42] | |
| 2006 | AlpInvest, together with HarbourVest Partners, completed a secondary transaction involving the establishment of a new fund, Paragon Partners. As a result of the transaction, Paragon Partners acquired an existing portfolio of three European companies providing an exit to German private equity fund manager Afinum. | [43] | |
| 2005 | AlpInvest, together with AXA Private Equity, purchased a cornerstone interest in West Private Equity, subsequently renamed Lyceum Capital, and simultaneously made a new commitment to Lyceum Capital's second fund. | [44] | |
| 2005 | AlpInvest, together with Lexington Partners purchased a $1.2 billion private equity portfolio from Dayton Power & Light, consisting of 46 fund interests. At the time of its completion, the DPL transaction represented one of the largest private equity funds portfolios acquired in the secondary market. | [45] [46] [47] | |
| 2003 | AlpInvest was a lead investor in the €1.5 billion divestiture by Deutsche Bank of its direct and co-investment portfolio of private equity interests, consisting of over 100 underlying companies. The sale was part of a spin-out of what would become the private equity firm, MidOcean Partners. At the time of its completion, the MidOcean transaction was the largest secondary market completed. | [48] |
AlpInvest traditionally invests alongside leading financial sponsors in leveraged buyouts and growth capital transactions. Since inception, AlpInvest has invested more than €3 billion in over 100 transactions and is among the most active co-investors in private equity transactions. The firm's dedicated co-investment team is made up of more than 25 professionals across its equity and mezzanine products operating in Europe, North America and Asia.
The following is a list of selected notable companies that AlpInvest has invested in alongside other private equity general partners, either as an equity co-investor or as a mezzanine debt provider:
| Investment | Date | Financial Sponsor(s) | Company Description | Ref. | |
|---|---|---|---|---|---|
| Alliance Boots | Apr 2007 | KKR | A British-based pharmacist and retailer | [49] | |
| Alltel | May 2007 | TPG Capital, GS Capital Partners | A mobile telecommunications company | [50] | |
| AMC Theatres | Dec 2004 | J.P. Morgan Partners, Apollo Global Management | The second largest movie theatre chain in North America. | [51] | |
| Avago Technologies | Dec 2005 | KKR | The former semiconductor products division of Hewlett Packard and later Agilent Technologies | ||
| Avaya | Oct 2007 | Silver Lake Partners | A telecommunications company specializing in enterprise telephony and call center technology | [52] | |
| Biomet | June 2007 | KKR | A medical device manufacturer of artificial joints | [53] | |
| Bushnell Corporation | 2007 | MidOcean Partners | Leading manufacturer of binoculars, spotting scopes, telescopes, night vision equipment, GPS and other optics and imaging products | ||
| Capio | Nov 2006 | Apax Partners | A leading European healthcare provider | ||
| CEVA Logistics | Aug 2006 | Apollo Global Management | A logistics company, formerly known as TNT Logistics | [54] | |
| Dollar General | Mar 2007 | KKR, GS Capital Partners | A chain of discount stores operating in the U.S. | [55] | |
| Education Management Corporation | Oct 2006 | Providence Equity Partners, GS Capital Partners, Leeds Equity Partners | A private operator of post-secondary educational institutions in North America | ||
| Expro | June 2008 | Candover, Goldman Sachs | A leading British-based oil and gas well management business | [56] [57] | |
| Fairmount Food Group | May 2003 | GTCR Golder Rauner | A food products supplier | [58] | |
| Ferretti Motors | October 2006 | Candover, Permira | An Italian yacht-building conglomerate (originally acquired in 1995 and taken private again in 2001) | [59] [60] | |
| Gala Coral Group | Aug 2005 | Candover, Cinven, Permira | A British betting shop, bingo and casino operator | ||
| Gemplus International | Dec 2005 | TPG Capital | A vendor of smart cards and other digital security products | ||
| Grupo ONO | Nov 2005 | Providence Equity Partners, CCMP Capital, THL Partners, Quadrangle | A Spanish broadband company, providing telephone, television and Internet services | ||
| Harrah's Entertainment | Jan 2008 | Apollo Global Management, TPG Capital | A gaming company that owns and operates casinos, hotels, and six golf courses | [61] | |
| Iasis Healthcare | May 2004 | TPG Capital | A hospital operating company | ||
| IMS Health | Nov 2009 | TPG Capital | Supplier of sales data and consulting services to the pharmaceutical industry | [62] | |
| Jostens | July 2003 | DLJ Merchant Banking Partners, Investcorp, MidOcean Partners | A producer of high school and college class rings and publisher of school yearbooks | ||
| LA Fitness | May 2007 | Madison Dearborn, CIVC Partners | An American health club chain | ||
| Masonite International | Dec 2004 | KKR | A producer of doors, door components and door entry systems, door components and door entry systems | [63] | |
| Nielsen Company | Jan 2006 | Blackstone Group, KKR | A global information and media company (formerly known as VNU) | [64] [65] | |
| Nuveen investments | June 2007 | Madison Dearborn | An investment management company that provides a suite of mutual funds, particularly in municipal securities | [66] | |
| NXP Semiconductors | Aug 2006 | KKR, Silver Lake Partners | A semiconductor company formerly part of Philips | [67] | |
| Nycomed | Mar 2005 | Nordic Capital | A European pharmaceutical company | [68] | |
| Roundy's | Jun 2002 | Willis Stein & Partners | A supermarket chain based in the midwestern U.S. | [69] | |
| SBS Broadcasting Group | June 2007 | Permira, KKR | A European broadcasting group, operating television, premium pay channels, radio stations and print businesses | [70] | |
| Seven Media Group | Dec 2006 | KKR | A media joint venture between with Australian Seven Network Limited formed in December 2006 | [71] [72] | |
| Sports Authority | Jan 2006 | Leonard Green & Partners | A leading retailer of sporting goods in the U.S. | [73] | |
| Spyder Active Sports | July 2004 | Apax Partners | A manufacturer of branded ski apparel and the largest ski-specialty brand | ||
| SunGard | Mar 2005 | Silver Lake Partners, Bain Capital, the Blackstone Group, Goldman Sachs Capital Partners, KKR, Providence Equity Partners, Texas Pacific Group | A provider of software and services to education, financial services and public sector organizations, acquired by one of the largest consortia of private equity investment firms | [74] | |
| TXU (renamed Energy Future Holdings) | Feb 2007 | KKR, TPG Capital, Goldman Sachs | An energy company based in Texas, acquired in a $45 billion leveraged buyout, which at the time of its announcement, was the largest buyout in history | [75] | |
| Univision Communications | Mar 2007 | Madison Dearborn, Providence Equity Partners, TPG Capital, L.P., THL Partners, Saban Capital Group | A Spanish language television broadcaster in the U.S. | [76] | |
| Vendex (renamed Maxeda) | Mar 2004 | KKR | A Netherlands-based retail group that operates: Brico, de Bijenkorf, Claudia Sträter, M&S, Praxis and Vroom & Dreesmann and formerly operated HEMA, Hunkemöller, and Praxis | [77] | |
| Visma | May 2006 | HgCapital (Engel Holding AS) | A Norwegian company providing enterprise resource planning and customer relationship management software and services | [78] [79] | |
| Warner Chilcott | Oct 2004 | CCMP Capital, Bain Capital, DLJ Merchant Banking Partners, THL Partners | A specialty pharmaceutical company producing branded prescription products in women's healthcare and dermatology in the U.S. | [80] | |
| Weather Channel | Sep 2008 | Blackstone Group, Bain Capital, NBC Universal | A media company operating The Weather Channel cable network | [81] |
Source: AlpInvest website[82]
AlpInvest's primary beneficiaries are the 4.8 million participants in the pension funds Stichting Pensioenfonds ABP (ABP) and Stichting Pensioenfonds Zorg en Welzijn (PFZW, formerly PGGM), both based in the Netherlands.
ABP and PFZW collectively had assets of over $500 billion as of December 31, 2012 and are among the largest pension funds in the world.
Prior to 2011, AlpInvest had not historically solicited capital from other investors or institutions. Following its spinout from the Dutch pension funds, AlpInvest has been actively raising capital from institutional investors in North America, Europe, Asia, South America and Africa.
Among AlpInvest's most notable U.S. clients are Municipal Employees' Retirement System of Michigan (MERS)[83] and Indiana Public Retirement System (INPRS).[84] [85]