NETHERLANDS – ABP and PGGM, the two largest Dutch pension funds, have awarded a new €11bn private equity mandate to AlpInvest.
AlpInvest Partners said the three-year brief is one of the largest mandates ever granted in the international private equity markets.
The mandate will be used for direct investments through co-investments with other funds, primary and secondary fund investments as well as mezzanine investments.
It said that around 70%-75% of these funds would be committed by AlpInvest to private equity funds. The remainder will be invested directly in companies as a co-investor in Europe and the US.
AlpInvest, which is co-owned by the two funds was formerly known as NIB Capital Private Equity, said the new mandate helps to fill the funds’ strategic need to diversify into alternative investments.
The schemes had already committed almost €20bn to AlpInvest, including a €6bn mandate awarded at the start of 2004.
"We are very excited by this new substantial mandate from ABP and PGGM,” said AlpInvest’s chief executive Volkert Doeksen.
“This mandate confirms the strong commitment by ABP and PGGM to our platform, helped by our good performance, and enables us to further strengthen our position as one of the world's leading private equity asset managers.
“Investing money is one thing, but to make an attractive real return on capital invested requires, experience, expertise, recognition of market developments and an eye for opportunities.”
Separately, the previously announced sale of NIB Capital to a group lead by J.C. Flowers from ABP and PGGM closed today.