APG, PGGM to sell AlpInvest to management, Carlyle Group
GLOBAL - Dutch asset managers APG and PGGM will sell their joint €32bn private equity vehicle AlpInvest to a joint venture between its management and the €98bn alternatives asset manager Carlyle Group.
The transaction will allow APG and PGGM - the asset managers of the €231bn civil service scheme ABP and the €98bn healthcare scheme PFZW, respectively - to carry out their multi-client strategies, the parties said in a joint statement.
APG and PGGM stressed that they would remain AlpInvest's main clients and reiterated their commitment to €10bn of additional mandates up to 2015.
AlpInvest is among the largest private equity investors in the world, investing through a worldwide private equity fund-of-funds programme and in related direct co-investments, as well as in secondary investments and mezzanine.
Volkert Doeksen, chief executive at AlpInvest, said: "Carlyle is a strong long-term partner of world class, with similar goals. Its worldwide network and reputation allow us to broaden our investors base and product range."
David Rubinstein, co-founder and managing director at Carlyle, said: "This partnership enhances the spectrum of our asset management and offers new options to Carlyle investors who are looking for an established fund-of-funds platform."
Doeksen and Rubinstein stressed that the new joint venture would preserve the independence of AlpInvest, which will have full say on investment decisions, taken by a committee of AlpInvest's investment professionals.
They said Doeksen would chair the board of directors, which will comprise an equal number of seats from AlpInvest - including chief financial office Paul de Klerk and director and observer Tjarko Hektor - and Carlyle.
The four parties also said they would work together to further integrate environmental concerns, SRI and corporate governance in the management of Carlyle's private equity investments.
Dick Sluimers, APG's chief executive, said: "The partnership matches APG's view on private equity investments and guarantees a sustainable development of the activities of AlpInvest."
APG and PGGM said Credit Suisse and Catalyst Advisors, respectively, acted as their exclusive financial advisers in this transaction, which requires the permission of the supervisor and is expected to be completed next March.