AlpInvest crosses €6bn fundraising mark after year in market

Secondaries Investor reported in November that the Carlyle Group unit was targeting $8bn for its latest secondaries programme.

AlpInvest Partners is approaching the target on its seventh secondaries programme after barely a year in market.

The Amsterdam-headquartered firm has raised the equivalent of €6.2 billion for the main fund of AlpInvest Secondaries Program VII, according to documents accompanying parent company Carlyle Group’s third quarter earnings presentation. The fund has invested about €345 million so far.

To exclude the impact of currency fluctuations, all AlpInvest foreign currency cashflows are converted to euros at the reporting period spot rate, the documents note.

Its 2017-vintage predecessor Program VI had made a net internal rate of return of 7 percent and a multiple of 1.2x as of 30 September, according to the document.

Secondaries Investor reported in November last year that AlpInvest was targeting $8 billion for its latest secondaries programme. A large proportion of the vehicle is understood to be in separate accounts.

Among the investors in the fund are China Life Insurance Company (Taiwan), which committed $30 million, according to Secondaries Investor data.

Carlyle’s investment solutions unit, which encompasses the primary, secondaries, co-investment and mezzanine funds managed by AlpInvest, accrued fee-related earnings of $14 million in the third quarter, up $10 million year-on-year. This was “primarily driven by activating management fees on AlpInvest’s latest secondaries programme”, the documents noted.

AlpInvest’s carry grew 8 percent in the quarter, Carlyle chief executive Kewsong Lee highlighted on the firm’s earnings call.

“Some pieces that our acquisition people are entitled to are small – 10-15 percent – then at the much higher end a 40 percent piece of all that base. There’s about $100 million in net accrued carry and that’s going to come over time.”

Secondaries deals AlpInvest has backed this year include a $300 million GP-led process on Kinderhook Industries‘ third fund and the sale of a A$6 billion ($4 billion; €3.6 billion) portfolio by Australian sovereign wealth fund Future Fund.