The two largest Dutch pension funds, ABP and PGGM, have put an undisclosed sum into private equity firm West Private Equity via their AlpInvest vehicle.
AlpInvest and AXA Private Equity are to buy all the investments owned by German bank WestLB in WPE's first fund, WPE Fund 2000. AlpInvest and AXA have also agreed to take over all the remaining commitments to that fund.
“In addition, AlpInvest and AXA Private Equity have made substantial commitments to a new fund to be raised and managed by WPE," a statement said. The value of the transactions was not disclosed.
In December the two giant pension funds awarded AlpInvest, in which they are the shareholders, an extra €11bn mandate.
West Private Equity, whose principals include former London Stock Exchange chief Don Cruickshank and ex-IBM Europe head Nick Temple, will be renamed Lyceum Capital. Its management has agreed to acquire the management company of the WPE funds. Lyceum will remain focused on investing in and developing mid-sized companies headquartered in the UK.
"Since we started investing in 2000, our relationship with WestLB has been highly beneficial for both parties," said WPE chief executive Philip Buscombe.
"Through this combined secondary and primary investment, we are pleased to assist creating the Lyceum Capital platform," added AlpInvest CEO Volkert Doeksen.
"Through this complex transaction, we have offered a tailor-made solution to all parties involved. We look forward to working with Lyceum Capital in continuing a successful UK mid-market investment strategy."