GERMANY - AlpInvest, the private equity firm owned by ABP and PGGM, has completed a €47m deal in Germany with HarbourVest Partners.
They have set up a new fund called Paragon Partners Secondary LP, which has bought the portfolio of three European companies from German house Afinum.
The two said in a statement: "The first significant deal of its kind in Germany, this transaction provides Paragon Partners with the capacity to provide follow-on capital to the portfolio companies, and also to pursue further transactions of this type."
They've made initial commitments of €47m to the fund, which is advised by Paragon Partners GmbH.
"Partnering with AlpInvest, we have provided Paragon Partners with the platform to build a business focused on acquiring portfolios of direct private equity assets," said HarbourVest managing director Peter Wilson.
"The participation in this transaction marks the first of its kind in Germany, and we hope to see more opportunities like this in the future."
"Through our commitment, we have enabled Paragon to acquire an attractive portfolio of secondary direct assets, which have significant additional growth potential,” added AlpInvest managing partner Volkert Doeksen.
“We believe that the market for secondary direct assets is an attractive growth segment in the secondary market, and we will continue to pro-actively target this segment."
AlpInvest is one of the world’s largest private equity investors, with more than €30bn under management – including a new €11bn brief from ABP and PGGM.
Earlier this month it emerged that AlpInvest had increased its investment in UK-based technology start-up fund Eden One.
Meanwhile, Carlyle Group’s David Rubenstein has warned Germany that it could fall behind its rivals if it doesn’t allow its pension funds to invest in private equity, according to reports.