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AlpInvest deploys $1.74bn from latest secondaries fund

Carlyle's Amsterdam-based fund of funds closed its fifth secondaries fund on roughly $4.2bn last year.

The Carlyle Group’s fund of funds arm AlpInvest Partners has deployed roughly $1.74 billion of its latest secondaries fund, according to the publicly-listed firm’s second quarter earnings report.

AlpInvest Main Fund V-Secondary Investments closed on roughly $4.2 billion last year and had invested about $780 million as of mid-May. The fund includes a $750 million blind pool co-mingled fund, which had been 25 percent invested as of May. The vehicle was generating a net internal rate of return of 31 percent and a multiple of invested capital of 1.4x as of 30 June, according to the earnings report.

AlpInvest is part of Carlyle’s ‘Solutions’ group, which had $19.3 billion of dry powder during the second quarter. A significant portion of the dry powder comes from Main Fund V’s Fund Investments vehicle, a 2012-vintage fund that raised $6.81 billion last year and has deployed roughly $671.4 million.

Another significant chunk of dry powder comes from Main Fund IV-Fund Investments, a 2009-vintage fund that raised $6.54 billion and has deployed roughly $3.2 billion. Meanwhile, AlpInvest’s $2.48 billion Main Fund IV-Secondaries has invested $2.25 billion of its capital.

Carlyle’s total dry powder for the quarter was $56.3 billion, the bulk of which came from the firm’s private equity group, followed by the ‘Solutions’ group.

The Solutions group also includes Metropolitan Real Estate Equity Management, which launched its seventh global fund of funds earlier this month and is gearing up to launch a US-focused fund of funds with a $500 million sidecar for secondaries.

“Our Solutions group is successfully integrating Metropolitan Real Estate and  Diversified Global Asset Management [the group’s hedge fund platform] alongside AlpInvest,” Carlyle co-chief executive officer William Conway said during the firm’s earnings conference call Wednesday.

The Solutions group grew its assets under management by 18 percent to $56.7 billion of assets year-over-year. Fee-earning assets under management increased 24 percent to $39.4 percent year-over year. The growth was partially driven by the acquisitions of Metropolitan and DGAM as well as net capital raised by AlpInvest, according to the report.

The Solutions group is Carlyle’s second largest contributor to assets under management. Carlyle’s total assets grew by 12 percent year-over-year to $202.7 billion. Carlyle generated an economic net income—a measure of earnings that includes realised and unrealised investments—of $318 million during the second quarter, compared to $156 million during the same period last year.