AlpInvest secures $6.5bn so far for latest secondaries flagship

The momentum on Fund VIII, which is targeting north of $10bn, is aiding its private equity secondaries vehicle targeting private wealth investors, according to chief executive Harvey Schwartz.

The Carlyle Group’s AlpInvest Partners is around halfway to its fundraising target for its latest secondaries flagship fund.

AlpInvest Secondaries Program VIII, which launched in February last year, had secured $6.5 billion at the end of last quarter, according to its Q1 earnings report. The firm is seeking north of $10 billion for the programme, Secondaries Investor reported last year.

Its predecessor closed on $9 billion at the end of 2020, beating its target by $1 billion.

Harvey Schwartz, CEO of the Carlyle Group
Harvey Schwartz, Carlyle Group

Overall, Carlyle’s global investment solutions business, which houses AlpInvest, raised $2.3 billion in the quarter and accumulated $13.6 billion across a 12-month period. The business line “continue[s] to have success attracting investors to our secondaries and co-investment strategies”, chief executive Harvey Schwartz said on an earnings call Wednesday. “Obviously, this business is somewhat countercyclical to the rest of the franchise.”

This “success” is “building momentum” for its private equity secondaries fund dedicated to the private wealth channel, Carlyle AlpInvest Private Markets Fund, Schwartz added.

CAPM, which launched last year, is invested primarily in secondaries positions with the sub-asset class making up 58 percent of the fund. Around one-third of the vehicle is invested in co-investments with the remaining 7 percent in primary investments.

CAPMs’ Class I shares have returned 20.01 percent since inception in January last year, according to Carlyle’s website.

The firm also has its private wealth-focused Tactical Private Credit Fund, which launched in 2018. “With CTAC growing steadily, CAPM picking up momentum – our secondaries product – we will be making some announcements in the near term of some new partnership launches,” Schwartz added.

Schwartz did not directly answer an analyst question on how much capital was raised from wealthy individuals over the past quarter. The firm has already raised nearly $50 billion from the wealth channel since inception, Schwartz said in February.

AlpInvest is also raising its portfolio finance-focused vehicle AlpInvest Strategic Portfolio Finance Fund II, which has collected $925.2 million against a $2 billion target, according to Secondaries Investor data. It is seeking commitments for its second single-asset continuation fund-focused vehicle AlpInvest Atom Fund II. Its predecessor closed on $344.7 million, coming in underneath its $500 million target, SI data shows.