Carlyle Acquires AlpInvest

Leo Kolivakis's picture

Via Pension Pulse.

Robert Van Daalen and Paul Hodkinson of Dow Jones report in the WSJ, Pension Funds Sell Equity Arm to Carlyle:

Partners, Europe's largest private-equity investor, has been sold to
Carlyle Group and the AlpInvest management in a move that looks set to
shake up Europe's buyout landscape.


and AlpInvest have entered into a joint venture that separates the
investor from its Dutch pension-fund owners, APG and PGGM, the parties
said Wednesday. A purchase price wasn't disclosed.


The sale
gives the pension-fund managers more room to invest their clients'
money in private-equity funds other than AlpInvest, PGGM Chief
Executive Martin van Rijn said. "We have multiple clients, and a sale of
AlpInvest gives us the opportunity to provide our clients with various
choices to invest in private equity," he said.


and APG control the money of two of the Netherlands' largest pension
funds. They have committed an additional €10 billion ($13.68 billion)
in funds as part of the deal, Mr. van Rijn said.


"APG has
committed around €7 billion, while PGGM granted an additional €3
billion in investment mandates," he said. The funds will be granted in
the period from 2011 through 2015.


AlpInvest manages €32.3 billion in funds, mainly on behalf of APG and PGGM.


the scope of our global asset-management business will create new
opportunities for Carlyle investors who seek a proven fund-of-funds
platform," said David Rubenstein, managing director at Carlyle.


The transaction, which is subject to regulatory approval, is expected to close in March.


is a strong, long-term partner for AlpInvest. This is critical given
the €32 billion in commitments we already manage today on our
investors' behalf," said AlpInvest Chief Executive Volkert Doeksen,
adding that Carlyle's global network and respected brand will help
AlpInvest broaden its investor base and product



about €265 billion of assets under management, APG is one of the
world's largest pension-asset managers. PGGM manages more than €100
billion of pension assets on behalf of some 2.3 million participants.


The AlpInvest board will comprise equal numbers of
members from Carlyle and AlpInvest's management. It will be chaired by
Mr. Doeksen and will include AlpInvest members Paul de Klerk and Tjarko


Some observers have questioned whether conflicts could
be an issue for the joint venture as AlpInvest has access to a large
amount of information on Carlyle's rivals.


However, the firms
said they have taken specific measures to ensure sensitive information
won't be shared. The firms have put in place a firewall that will mean
Carlyle executives will avoid having access to sensitive information on
firms, funds and specific deals. It means the Carlyle executives
sitting on AlpInvest's board will need to ensure the conversation is
kept to macro issues.


In addition, no Carlyle executives will sit
on AlpInvest's investment committees. This means AlpInvest's
management excluding Carlyle executives will have full independence in
deciding which firms to commit to, therefore lessening any ability
Carlyle might have in hurting rivals.


has also agreed not to invest in Carlyle's future funds. This
effectively removes any problems that could arise if disagreements
arose between the firm and the investor on performance, strategy,
commitment defaults and a host of other areas.


Carlyle has
already contacted many of its rivals to gauge their reaction to such a
move, according to one source close to the process, and the rivals were
happy as long as the above safeguards were in place.


mooted bidders for the operation had included U.S. fund of funds
HarbourVest Partners and U.S. fund of hedge funds Grosvenor Capital

Martin Arnold of the FT reports that Mr Rubenstein predicted that rival groups would follow Carlyle’s move into the fund-of-funds industry, adding that Goldman Sachs had shown how to invest both directly in deals and in rival funds without difficulty:

as Goldman Sachs runs a secondaries private equity fund as well as a
direct principal investment business, we are doing the same thing, and
there has never been a problem there,” Mr Rubenstein told the Financial


To address any conflict of
interest fears, he said AlpInvest would be banned from investing in
future Carlyle funds and from sharing any information with its new
parent that is provided by the other funds it backs.


deal, valuing AlpInvest at several hundred million dollars, cements
Carlyle’s position as the world’s biggest private equity group by
assets under management. Before the deal it managed $97.7bn of assets
in 76 different funds.


AlpInvest, which invests on behalf of
millions of Dutch civil servants, teachers and healthcare workers, has
secured a commitment from APG and PGGM to grant it €10bn of further
investment mandates over the next five years.


managers, led by chief executive Volkert Doeksen, are investing their
own money to take a 40 per cent stake. The managers will split voting
rights 50:50 with Carlyle.


No Carlyle executives will sit on its investment committees.


PGGM and APG decided to sell AlpInvest last year after public criticism in the Netherlands over the high pay packages received by some of its top executives.

paid €32.6m in salaries and wages to its 118 staff in 2009, of which
71 were investment professionals, after making €60m of revenues from
management fees and carried interest – a share of profits.


Carlyle has been expanding its product offering and last year it bought a 55 per cent stake in Claren Road Asset Management, a $4.5bn hedge fund.


Washington-based group – which once employed George H W Bush, the
former US president, and the former British prime minister John Major as
advisers – is expected to go public as early as this year, provided
market conditions improve.


APG and PGGM were advised on the deal by Credit Suisse and Catalyst Advisors.

what to make of this deal? In general, I'm not a big fan of hedge fund
of funds or private equity fund of funds. Double layer fees chew up a
lot of returns. Of course, AlpInvest
is one of the better managed fund of funds in Europe. Carlyle is
expanding its global presence to cash in when it goes public later this
year. Does this mean private equity is about to peak? Not necessarily
but they're obviously trying to time the markets right once they go
public. If all goes smoothly, Carlyle executives will make a mint off
the public offering. What remains to be seen is how well AlpInvest and
Carlyle investors fare in the future.

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Hammer Time's picture
Sorry for the language... Hufters (2)

donderdag 27 januari 2011
Soms denk je echt dat je voor Jan Lul staat te toeteren vanaf een zandverstuiving op de Veluwe. Op 22 december jl. hesen we nog de stormbal bij het bericht dat de pensioenfondsen PGGGM en APG hun beleggingsvehikel Alpinvest wilden verkwanselen aan de Amerikaanse onderneming Carlyle, die als het zo uitkomt graag de zwarte vlag met de knekels hijst. Datzelfde Carlyle had de Nederlandse pensioenfondsen in het recente verleden nog willens en wetens een zeperd van een half miljard bezorgd. Maar kennelijk heeft de firma van beruchte schuimers als Bush, Soros, Major, Bin Laden en meer van dat gezelligs een knoert van een vette worst buiten boord gehangen, want onze pensioenbewakers roeiden met hun korjalen verlekkerd eropaf en boden in ruil voor die worst 32 miljard euro. En op het strand lag nog eens 10 miljard te blinken in de zon. En wat deed de dorpsraad onder leiding van medicijnman Bibi? Niks. Die zaten te lullen over een alostop, het pissen in brievenbussen niet strafbaar te stellen, kopstoten tot folklore te verheffen en het afrossen van geboeide arrestanten voortaan te belonen met een plekje in de Eerste Kamer. Terwijl aan de horizon de Amerikaanse driemaster met de knekels in top langzaam uit het zicht verdwijnt. Hadden we Piet Hein nog maar.

Reptil's picture

LMAO! Someone should translate that.


Yes, indeed, how quaint, that suddenly Afghanistan missions are back on the (coffie)table, and pensions will all be paid in full, to everyone, indefinately (no matter what). And boy will those policemen be happy they'll not have to fight over there, since that was decided upon in dutch parliament (in writing, otherwise it could be forgotten)? I hope someone informed the Taliban.

They sold our soul to the devil, and it wasn't even on the eight o'clock NOS news.

("big" disappontment there LOL)

Sadly, the "payment" isn't going to be so voluminous, once the euro will be deflated beyond recognition. (to prop up italian prostitutes, a necessary support function, y'understand) NONE of this "news" reached the MSM of course, so this "sale" (200 mil. euro) is met by hardly any protest, or could it be... that Carlyle bought the paychecks of the ladies and gentlemen politicians too? (in good Carlyle fashion, consistent with Straussian business ethics)

They did wear new suits today...

Orrr was that Putin's money? For the new natural gas relay station, naturally. Or perhaps crispy Yuans for DRAKA, or Rijnmond? Or....

As for your frustration over the indifference amongst the dutch populace... eehm yes, tell me about it. OTOH I think if I'd "go into politics" I'd end up like the last guy that disagreed with the Militairy Industrial Complex. Pim, we missen je! (nog steeds) :-/ Instead I can only blurt out:

OMG they're selling everything!


eh...... got silver?

ZackAttack's picture

Wasn't Carlyle the group of morons who were levered 32:1 (something close to that, I recall) on mortgage debt when Congress raised the conforming loan limit and blew up the convexity of their bond portfolio?

Deserved to go away. But, of course, in our world, 'deserves' has nothing to do with anything. Incompetence must be bailed out and prudence punished.

Reptil's picture

Alas, they didn't go away, but "rematerialised" here. (Using a Lockheed-Martin "black budget" developed transporter of course. ;-P) And the "biofilter" of said transporter was set to "off", otherwise the vermin would've been scattered in atoms all over the galaxy)

Seriously now, the problem in one of the richest countries in western europe (The Netherlands) is, that 98% of the citizens are mentally stuck in 2002 (or perhaps 1998). And are thus easy prey for a bunch of fiscal butchers like the Carlyle Group. And group-think that "everything will be ok, as long as you don't talk about it too much".

claudcarter's picture

Alas, they didn't go away, but "rematerialised" here. (Using a Lockheed-Martin "black budget" developed transporter of course. ;-P) And the "biofilter" of said transporter was set to "off", otherwise the furnished apartments vancouver vermin would've been scattered in atoms all over the galaxy)


I’m no expert, but I think you just made a very good point. You obviously know what you’re talking about, and I can really get behind that. Thanks for being so upfront and so honest

Hammer Time's picture

So, lets go and by PM's with those fiat monnies...

(hiermee misschien 5% positie innemen in goud en zilver, en liefst niet de papieren versie ervan)

illyia's picture

Goldman's masters...

The Carlyle Group, L.P. (commonly The Carlyle Group or Carlyle) is a global alternative asset management firm, specializing in private equity, based in Washington, D.C.. The Carlyle Group operates four fund families, focusing on buyout capital, growth capital, real estate, and leveraged finance investments, with more than $90.9 billion of capital under management diversified over 66 distinct funds as of June 30, 2010.[1] The firm employs more than 890 employees, including 495 investment professionals, in 20 countries with offices in the Americas, Europe, Asia, and Australia, and its portfolio companies employ more than 415,000 people worldwide. The firm has over 1,300 investment partners in 71 countries.

I cannot resist:

Notable current and former employees and advisors

[edit] Business [edit] Political figures [edit] North America

TradingJoe's picture

Hah! Reads like a WHO IS WHO of the bancheros trolls!

Reese Bobby's picture

You ever see "Austin Powers: International Man of Mystery" Leo?

You remind me of poor Dr. Evil:  "I've been frozen for thirty years, okay? Throw me a frickin' bone here!"

I don't care about what the souless ex-hippies at Carlyle are exploiting these days.  I don't care how many mansions thay have.  It doesn't matter.

Rome is burning and you are tracking the moves of the arsonists?  Fuck them.  Look elsewhere for relevance, I suggest.  I will always be an outsider at ZH by pointing out the relevance of Christ, our savior.  But after following this site since inception I felt compelled to say that to you.  God Bless.

And think about gold in Austria; or "t-bills" in Nordic countries.  There's a storm a coming...

JW n FL's picture

Ward! You! are being a lil hard on the beaver!

Reese Bobby's picture

Yeah, well Eddie Haskell wasn't working.


But I read Leo to be a well-meaning, less-than-a-beautiful-mind, who-may-have-compromising-photos of Tyler decent man.


People who write his kind of stuff are NOT bad people.

JW n FL's picture

Carlyle Group

777 South Flagler Drive, West Palm Beach, FL 33401-6161 (561) 273-6020

they will be fine.. trust me.