AlpInvest Partners

AlpInvest Partners

Type	Subsidiary
Industry	Private Equity
Predecessor(s)	NIB Capital
Founded	1999
Headquarters	New York, New York, U.S. Amsterdam, Netherlands Hong Kong
Key people	Volkert Doeksen, Chairman Paul de Klerk, CFO/COO
Products	Fund investments, Secondaries, Co-Investments, Mezzanine
Total assets	$48 billion (June 30, 2013)[1]
Employees	130+ (2013)
Parent	The Carlyle Group
Website	www.AlpInvest.com

AlpInvest Partners is a leading private equity asset manager with $48 billion of assets under management as of June 30, 2013. AlpInvest's global investor base includes two large Dutch pension funds (ABP and PFZW), which were previous shareholders of the company, as well as institutional investors from North America, Asia, Europe, South America and Africa.

AlpInvest operates three investment teams focused on private equity: Fund Investments, Secondary investments and Co-Investments.

AlpInvest pursues investment opportunities across the entire spectrum of private equity including: large buyout, middle-market buyout, venture capital, growth capital, mezzanine, distressed and sustainable energy investments.

In 2011, the firm was acquired by a joint venture between AlpInvest management and The Carlyle Group and since August 2013, AlpInvest has operated as a subsidiary of Carlyle.

Founded in 1999, AlpInvest has offices in New York, Amsterdam, Hong Kong and Indianapolis with over 75 investment professionals and over 130 employees.

Investment Programs

With over $48 billion of funds under management, AlpInvest is one of the largest investors in the private equity asset class globally.^[2][3][4][5] AlpInvest pursues investment opportunities across the entire spectrum of private equity including: large buyout, middle-market buyout, venture capital, growth capital, mezzanine, distressed and sustainable energy investments. AlpInvest also invests across the range of private equity investment channels:

• Primary fund investments
• Secondary investments
• Co-investments

AlpInvest invests primarily in private equity limited partnerships and effectively acts as a fund investor, making commitments to private equity funds globally. Among the most notable firms with which AlpInvest is invested include: Kohlberg Kravis Roberts, Blackstone Group, Providence Equity Partners and TPG Capital as well as many of the leading middle-market private equity firms and venture capital firms.^[6]

AlpInvest will invest with these firms either by making commitments to new investment funds or by purchasing funds through the private equity secondary market. AlpInvest is one of the largest private equity fund investors and is also among the largest and most active and experienced investors in private equity secondaries.

AlpInvest also invests directly alongside some of the largest private equity investors through an active co-investment program and will make mezzanine debt investments into companies owned by financial sponsors.^[7]

Following this spin-off of its European middle market leveraged buyout platform, which was subsequently renamed Taros Capital, AlpInvest, by itself, no longer makes control investments directly in privately held companies, but rather invests alongside selected private equity managers.

Investors and beneficiaries

AlpInvest's primary beneficiaries are the 4.8 million participants in the pension funds Stichting Pensioenfonds ABP (ABP) and Stichting Pensioenfonds Zorg en Welzijn (PFZW, formerly PGGM), both based in the Netherlands.

ABP and PFZW collectively had assets of over $500 billion as of December 31, 2012 and are among the largest pension funds in Europe.

Prior to 2011, AlpInvest had not historically solicited capital from other investors or institutions. Following its spinout from the Dutch pension funds, AlpInvest has been actively raising capital from institutional investors in North America, Europe, Asia, South America and Africa.

Among AlpInvest's most notable U.S. clients are Municipal Employees' Retirement System of Michigan (MERS)^[8] and Indiana Public Retirement System (INPRS).^[9][10]

History

AlpInvest as it is currently known, was established in 1999 as an initiative by its two sponsors, the Dutch pension funds ABP and PFZW (then PGGM), to create an independent and professional manager for their private equity allocations.^[11]

AlpInvest's predecessor, NIB Capital Private Equity, originally operated as one integrated investment firm with distinct teams focusing on fund investments as well as lead buyout investments in mid-sized companies located in the Benelux and Germany. As the firm evolved, AlpInvest shifted its focus toward an expansion of its investment management business.

In 2000, AlpInvest expanded its investment platform, by creating a dedicated equity co-investment team to invest in transactions alongside its core private equity managers. The following year, in 2001, the firm began a formal effort to make mezzanine investments. A year later, in 2002, AlpInvest launched a secondary investment platform, which has emerged as one of the largest buyers of private equity assets in the secondaries market.

Today, AlpInvest focuses exclusively on its investment management business as a fund investor as well as secondary investor and equity and mezzanine co-investor and has grown into one of the largest investors in the private equity asset class.

Milestones

The following is a timeline of significant milestones:

• 1980s - Both ABP and PGGM begin separate in-house private equity investment programs, investing primarily in private equity funds.

• 1990s - Alpinvest Holding N.V., a evergreen investment fund, is founded and Stan Vermeulen is named CEO in 1993. Alpinvest Holding N.V. provided private equity and mezzanine capital to middle market companies in Benelux and Germany until its acquisition by ABP and PGGM in 2000.

• 1997 - Alpinvest Holding N.V. begins trading on the Amsterdam Stock Exchange on 11 June 1997. Major shareholders in Alpinvest Holding N.V. included the Dutch government and ABN Amro Bank NV.

• 1999 - ABP and PGGM form NIB Capital Private Equity, the predecessor of AlpInvest under the leadership of Volkert Doeksen, in order to increase position in the private equity market. NIB Capital is formed from several separate teams from NIB Bank NV and Parnib Holding NV.

• 2000 - Alpinvest Holding N.V. is acquired by ABP and PGGM, and integrated into Parnib Holding N.V. and NIB Capital Private Equity to form what would become AlpInvest Partners. ABP and PGGM topped a bid from GIMV to acquire the listed investment fund.^[12] NIB Capital receives its first mandate of €13 billion from ABP and PGGM of which close to €7 billion is designated for new investments in the period 2000–2002. The remainder comprised existing investments made by ABP, PGGM and NIB Capital’s predecessors.

• 2000 - AlpInvest begins a dedicated equity co-investment group.

• 2001 - NIB Capital opens New York office.

• 2002 - NIB Capital begins a dedicated secondary investment effort with a €1 billion mandate.

• 2003 - NIB Capital receives a new €7 billion mandate from ABP and PGGM, covering the period 2003–2005, for fund investments, secondary investments, co-investments and lead investments in the Benelux/German mid-market.

• 2004 - NIB Capital Private Equity spun out to ABP and PGGM and renamed "AlpInvest Partners".^[13][14]

• 2006 - AlpInvest receives a new investment mandate from ABP and PGGM initially amounting to €11 billion, covering the period 2006–2008 (the mandate size increased over time). This represented one of the largest mandates ever granted in the international private equity markets.^[15]

• 2006 - AlpInvest spins off its European middle market buyout business, which is subsequently renamed Taros Capital^[16] in order to focus exclusively on investments in private equity funds and alongside relationship financial sponsors.

• 2006 - AlpInvest opens its first Asian office in Hong Kong.

• 2007 - AlpInvest receives a €2 billion mandate to invest in global mezzanine debt transactions^[17] and a €500 million Cleantech investment covering the period 2007–2009.

• 2008 - AlpInvest opens London office.^[18]

• 2011 - AlpInvest acquired by a joint venture between management and The Carlyle Group

• 2013 - AlpInvest raises $4.2 billion of investor commitments for its AlpInvest Secondaries Program, focused on secondary investments^[19]

• 2013 - The Carlyle Group acquires 100% ownership interest in AlpInvest^[20]

Awards

In recent years, AlpInvest has won several industry awards based on its position as a leading limited partner.

Year	Award	Publication	Ref.
2012	#1 Largest Private Equity Fund of Funds	Towers Watson, Financial Times	[21]
2008	Limited Partner of the Year	Private Equity International	[22]
2008	Most Influential European Limited Partner	Private Equity News	[23]
2007	Limited Partner of the Year	Private Equity International	[24]
2007	Most Influential European Limited Partner	Private Equity News	[25][26]
2007	Buyout of the Year: VNU (Co-Investment)	Thomson Financial's Acquisitions Monthly	[27]
2006	Limited Partner of the Year	Private Equity International	[24]
2006	Large investment of the year: NXP (Co-Investment)	Financial News	[28]
2005	Limited Partner of the Year*	Private Equity International	[29]

* This award was initiated in 2005. AlpInvest was the first recipient.

Private Equity Fund Investments

AlpInvest is among the largest investors in private equity funds, globally, historically allocating as much as €4 billion per year to leveraged buyout (large-cap, middle-market, lower middle market), venture capital and special situations funds, among other strategies. AlpInvest maintains relationships with many of the leading managers in difficult to access segments of private equity. In many cases, AlpInvest is a strategic investor and tends to be among the largest investors in each fund in which it invests. AlpInvest follows a deliberate allocation process that includes a top-down segment analysis and bottom-up general manager selection. The firm's funds team is made up of more than 25 professionals based globally in Europe, North America and Asia.

The following is a list of selected, notable private equity firms, with which AlpInvest has disclosed an investment as a limited partner, through its primary and/or secondary investment practices (the total list includes over 250 firms):

3i Accel-KKR Advent International Affinity Equity Partners Allianz Capital Partners Altor Capital Partners American Securities Capital Angelo Gordon & Co. Apax Partners Apollo Global Management Astorg Partners Atlas Venture Austin Ventures Ardian (formerly AXA Private Equity) Avista Capital Partners Bain Capital Barclays Private Equity BC Partners Berkshire Partners Blackstone Group Bridgepoint Capital Brockway Moran & Partners Butler Capital Partners Calera Capital Candover

Capvis Equity Partners Carlyle Group Catterton Partners CCMP Capital Charterhouse (UK) Charterhouse (US) Cinven Close Brothers Group Coller Capital Compass Partners Court Square Capital CVC Capital Partners DLJ Merchant Banking Duke Street Capital Fox Paine & Company Freeman Spogli Friedman Fleischer & Lowe Golden Gate Capital GP Investments Graphite Capital GTCR H&Q Asia Pacific Hellman & Friedman Highland Capital Partners HM Capital Partners Intermediate Capital Group

Index Ventures Industri Kapital Investitori Associati J.W. Childs Associates Jordan Company Kelso & Company Kennet Partners Kohlberg Kravis Roberts KRG Capital Lake Capital Leonard Green & Partners Lexington Partners Lightyear Capital Lindsay Goldberg Littlejohn & Co. Madison Dearborn Partners MidOcean Partners MatlinPatterson Advisors Mid Europa Partners Mizuho Capital Nautic Partners New Enterprise Associates New Mountain Capital Newstone Capital Partners Oak Investment Partners Olympus Partners

Onex Partners Permira Phoenix Equity Partners Polaris Venture Partners Providence Equity Partners Riverside Company Sevin Rosen Funds Silver Lake Partners Sofinnova Partners Sun Capital Partners TCW/Crescent Mezzanine Terra Firma Capital Partners TPG Capital Trivest VantagePoint Vestar Capital Vitruvian Partners Warburg Pincus Wellington Partners Wellspring Capital Willis Stein & Partners

Source: AlpInvest website^[6]

Secondary Investments

AlpInvest's secondary investments group focuses on the purchase of existing portfolios of private equity assets.

In the secondary market, AlpInvest operates as an independent investment group with a large dedicated team, comparable to other leading secondary firms and is one of the largest buyers of private equity assets in the secondaries market.^[30] AlpInvest's secondary investments include purchases of limited partnership interests, spin-outs of captive private equity groups, stapled secondary transactions, securitizations, joint ventures and secondary direct transactions.

Although most secondary transactions are kept confidential, the following transactions have been disclosed:^[31]

Date	Deal Description	Ref.
2008	AlpInvest, together with Goldman Sachs Capital Partners and CPP, purchased a portfolio of interests in 32 European companies managed by AAC Capital Partners from ABN AMRO for $1.5 billion.	[32][33]
2008	AlpInvest, together with Goldman Sachs, purchased $400 million of interests in legacy investment funds managed by Court Square Capital Partners from Citigroup.	[34][35]
2008	AlpInvest, together with HarbourVest Partners, Pantheon Ventures, Partners Group, Paul Capital Partners, Portfolio Advisors and Procific completed a takeover of Macquarie Capital Alliance Group in one of the first public to private transactions of a publicly traded private equity company completed by secondary market investors.	[36][37]
2006	AlpInvest underwrote the equity of a $500 million newly formed vintage fund-of-funds consisting of approximately 40 underlying private equity partnerships in a joint venture with Swiss Re and Horizon 21, a fund manager.	[31][38]
2006	AlpInvest, together with Coller Capital and Goldman Sachs underwrote the equity tranche of Astrea, an $800 million securitization, of 46 private equity fund interests owned by Temasek, a Singapore based sovereign wealth fund.	[31][38][39]
2006	AlpInvest, together with HarbourVest Partners, completed a secondary transaction involving the establishment of a new fund, Paragon Partners. As a result of the transaction, Paragon Partners acquired an existing portfolio of three European companies providing an exit to German private equity fund manager Afinum.	[31][40]
2005	AlpInvest, together with AXA Private Equity, purchased a cornerstone interest in West Private Equity, subsequently renamed Lyceum Capital, and simultaneously made a new commitment to Lyceum Capital's second fund.	[31][41]
2005	AlpInvest, together with Lexington Partners purchased a $1.2 billion private equity portfolio from Dayton Power & Light, consisting of 46 fund interests. At the time of its completion, the DPL transaction represented one of the largest private equity funds portfolios acquired in the secondary market.	[31][42][43][44]
2003	AlpInvest was a lead investor in the €1.5 billion divestiture by Deutsche Bank of its direct and co-investment portfolio of private equity interests, consisting of over 100 underlying companies. The sale was part of a spin-out of what would become the private equity firm, MidOcean Partners. At the time of its completion, the MidOcean transaction was the largest secondary market completed.	[31][45]

Private Equity and Mezzanine Co-investments

AlpInvest traditionally invests alongside leading financial sponsors in leveraged buyouts and growth capital transactions. Since inception, AlpInvest has invested more than €3 billion in over 100 transactions and is among the most active co-investors in private equity transactions. The firm's dedicated co-investment team is made up of more than 25 professionals across its equity and mezzanine products operating in Europe, North America and Asia.

The following is a list of selected notable companies that AlpInvest has invested in alongside other private equity general partners, either as an equity co-investor or as a mezzanine debt provider:

Investment	Date	Financial Sponsor(s)	Company Description	Ref.
Alliance Boots	Apr 2007	KKR	A British based pharmacist and retailer	[46]
Alltel	May 2007	TPG Capital, GS Capital Partners	A mobile telecommunications company	[47]
AMC Theatres	Dec 2004	J.P. Morgan Partners, Apollo Global Management	The second largest movie theatre chain in North America.	[48]
Avago Technologies	Dec 2005	KKR; Silver Lake Partners	The former semiconductor products division of Hewlett Packard and later Agilent Technologies
Avaya	Oct 2007	Silver Lake Partners	A telecommunications company specializing in enterprise telephony and call center technology	[49]
Biomet	June 2007	KKR	A medical device manufacturer of artificial joints	[50]
Bushnell Corporation	2007	MidOcean Partners	Leading manufacturer of binoculars, spotting scopes, telescopes, night vision equipment, GPS and other optics and imaging products
Capio	Nov 2006	Apax Partners	A leading European healthcare provider
CEVA Logistics	Aug 2006	Apollo Global Management	A logistics company, formerly known as TNT Logistics	[51]
Dollar General	Mar 2007	KKR, GS Capital Partners	A chain of discount stores operating in the U.S.	[52]
Education Management Corporation	Oct 2006	Providence Equity Partners, GS Capital Partners, Leeds Equity Partners	A private operator of post-secondary educational institutions in North America
Expro	June 2008	Candover, Goldman Sachs	A leading British-based oil and gas well management business	[53][53][54]
Fairmount Food Group	May 2003	GTCR Golder Rauner	A food products supplier	[55]
Ferretti Motors	October 2006	Candover, Permira	An Italian yacht-building conglomerate (originally acquired in 1995 and taken private again in 2001)	[56][57][58]
Gala Coral Group	Aug 2005	Candover, Cinven, Permira	A British betting shop, bingo and casino operator
Gemplus International	Dec 2005	TPG Capital	A vendor of smart cards and other digital security products
Grupo ONO	Nov 2005	Providence Equity Partners, CCMP Capital, THL Partners, Quadrangle	A Spanish broadband company, providing telephone, television and Internet services
Harrah's Entertainment	Jan 2008	Apollo Global Management, TPG Capital	A gaming company that owns and operates casinos, hotels, and six golf courses	[59]
Iasis Healthcare	May 2004	TPG Capital	A hospital operating company
IMS Health	Nov 2009	TPG Capital	Supplier of sales data and consulting services to the pharmaceutical industry	[60]
Jostens	July 2003	DLJ Merchant Banking Partners, Investcorp, MidOcean Partners	A producer of high school and college class rings and publisher of school yearbooks
LA Fitness	May 2007	Madison Dearborn, CIVC Partners	An American health club chain
Masonite International	Dec 2004	KKR	A producer of doors, door components and door entry systems, door components and door entry systems	[61]
Nielsen Company	Jan 2006	Blackstone Group, KKR	A global information and media company (formerly known as VNU)	[62][63]
Nuveen investments	June 2007	Madison Dearborn	An investment management company that provides a suite of mutual funds, particularly in municipal securities	[64]
NXP Semiconductors	Aug 2006	KKR, Silver Lake Partners	A semiconductor company formerly part of Philips	[65]
Nycomed	Mar 2005	Nordic Capital	A European pharmaceutical company	[66]
Roundy's	Jun 2002	Willis Stein & Partners	A supermarket chain based in the midwestern U.S.	[67]
SBS Broadcasting Group	June 2007	Permira, KKR	A European broadcasting group, operating television, premium pay channels, radio stations and print businesses	[68]
Seven Media Group	Dec 2006	KKR	A media joint venture between with Australian Seven Network Limited formed in December 2006	[69][70]
Sports Authority	Jan 2006	Leonard Green & Partners	A leading retailer of sporting goods in the U.S.	[71]
Spyder Active Sports	July 2004	Apax Partners	A manufacturer of branded ski apparel and the largest ski-specialty brand
SunGard	Mar 2005	Silver Lake Partners, Bain Capital, the Blackstone Group, Goldman Sachs Capital Partners, KKR, Providence Equity Partners, Texas Pacific Group	A provider of software and services to education, financial services and public sector organizations, acquired by a one of the largest consortia of private equity investment firms	[72]
TXU (renamed Energy Future Holdings)	Feb 2007	KKR, TPG Capital, Goldman Sachs	An energy company based in Texas, acquired in a $45 billion leveraged buyout, which at the time of its announcement, was the largest buyout in history	[73]
Univision Communications	Mar 2007	Madison Dearborn, Providence Equity Partners, TPG Capital, L.P., THL Partners, Saban Capital Group	A Spanish language television broadcaster in the U.S.	[74]
Vendex (renamed Maxeda)	Mar 2004	KKR	A Netherlands based retail group that operates: Brico, de Bijenkorf, Claudia Sträter, M&S, Praxis and Vroom & Dreesmann and formerly operated HEMA, Hunkemöller, and Praxis	[75]
Visma	May 2006	HgCapital (Engel Holding AS)	A Norwegian company providing enterprise resource planning and customer relationship management software and services	[76][77]
Warner Chilcott	Oct 2004	CCMP Capital, Bain Capital, DLJ Merchant Banking Partners, THL Partners	A specialty pharmaceutical company producing branded prescription products in women's healthcare and dermatology in the U.S.	[78]
Weather Channel	Sep 2008	Blackstone Group, Bain Capital, NBC Universal	A media company operating The Weather Channel cable network	[79]

Source: AlpInvest website^[80]

See also

• Carlyle Group
• Volkert Doeksen
• Stichting Pensioenfonds ABP
• Stichting Pensioenfonds Zorg en Welzijn (PFZW)

Private Equity Limited partner Fund of funds Private equity secondary market Equity co-investment Mezzanine capital

Leveraged buyout Venture capital Growth capital Distressed investments Sustainable energy

Notes

References

External links

Wikimedia Commons has media related to AlpInvest Partners.

• AlpInvest Partners (official website)

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