Alpinvest Partners, the private equity business spun out of NIB Capital earlier this month, has secured a further mandate from ABP and PGGM, the Dutch pension funds which now directly control the business.
The €6 billion ($7.67 billion) mandate, the largest secured by a private equity firm in recent years, covers an investment period of three years and will be used for fund investments, secondary investments, co-investments and direct investments.
The firm, headed by managing partner Volkert Doeksen, already manages €14 billion on behalf of ABP and PGGM, and the latest mandate places Alpinvest as Europe’s largest private equity firm and one of the three biggest managers worldwide alongside The California Public Employees' Retirement System (CalPERS), and GIC, the Singapore government investment corporation. Since 1999, Alpinvest’s investment portfolio has grown from €600 million to more than €14 billion.
“This mandate will enable us to continue investing in what are very interesting times in terms of investment opportunities, and to further build on our leading position in the international private equity market,” Doeksen said in a statement this morning.
As part of the new mandate agreement, ABP and PGGM will both nominate a member for the new Supervisory Board of AlpInvest Partners. In addition, an independent chairman will be nominated, together with two additional members. The executive committee consists of Volkert Doeksen (CEO), Paul de Klerk (CFOO), Wim Borgdorff, Iain Leigh and Erik Thyssen.
ABP and PGGM are two of the largest pension funds in the world with respectively €150 billion and €53 billion of assets under management. Following this investment, private equity will account for nearly 2.5 percent of ABP’s investment portfolio. PGGM will maintain its seven percent portfolio weighting.
Of NIB Private Equity’s €14 billion under management, €11.5 billion is allocated to its global fund investment scheme, focusing on Europe, the US and South East Asia across all stages, with a further €900 million allocated to co-investments. The firm currently aims to invest between €1.5 billion and €2 billion annually.
A further €1.5 billion is committed to its local market, encompassing the Benelux countries and Germany, making it one of the largest investors in the region.
Last year, the firm was one of the major backers of the buyout of MidOcean Partners, the later-stage portfolio of private equity investments owned by Deutsche Bank, providing over €300 million of capital for the €1.5 billion deal.