AlpInvest to raise sixth fund next year

Carlyle has indicated its secondaries subsidiary AlpInvest will return to fundraising in 2016, in comments made during Tuesday’s earnings conference call.

“Where we are very excited is really in the secondaries business,” said Curt Buser, chief financial officer of the firm, during the call. “So we’ll have a large secondary fund that Alpinvest is overseeing, that’ll come online next year.”

Buser didn’t indicate the exact timing nor a target for the fund, which is likely to be dubbed AlpInvest Secondaries Fund VI.

The group also said that AlpInvest Secondaries Program (ASP), which includes AlpInvest Secondaries Fund V, is more than 60 percent invested, in a third-quarter earnings statement released earlier this week.

The programme closed in October 2013 with $4.2 billion including $750 million for AlpInvest Secondaries Fund V.

The ASP consists of commitments from AlpInvest’s cornerstone investors APG and PGGM, managed accounts with dedicated allocations to secondaries, and the fifth fund.

ASP has invested about $2.6 billion in cumulative capital in the past two years. Its net internal rate of return was 26 percent as of 15 September, while the program has a 1.4 times multiple of invested capital.

AlpInvest Secondaries Fund V closed at its hard-cap with commitments from 18 investors including sovereign wealth funds, public pensions, corporate pensions, insurance companies, asset managers, and foundations located in North America, Latin America, Europe, Africa, the Middle East and Asia-Pacific. It had an initial target of $500 million.

This week, Carlyle reported its first quarterly loss since it went public three years ago. It posted a negative net income of $140 million, down from a profit of $177 million a year earlier, mainly due to increased volatility in global markets, which impacted valuations.