Two years after it acquired a 60 percent stake in AlpInvest Partners, Carlyle will buy the rest of the firm for 2.8 million shares and €4 million cash.
Upon completion of the acquisition, the AlpInvest and Carlyle teams will remain the same, according to a source with knowledge of the deal.
Carlyle declined to comment.
Carlyle announced its €10 billion acquisition of AlpInvest in 2011. As part of the deal, the pensions extended their relationship with AlpInvest through 2015, pledging an ongoing total commitment of €10 billion. Earlier this year, APG announced it had already exceeded that amount. APG and PGGM have both been developing their own, in-house private equity programmes since selling their interests in AlpInvest.
The goal of Carlyle’s and AlpInvest’s relationship was to be mutually beneficial and that has been the case, according to the source.
AlpInvest, meanwhile, is nearing a final close for its fifth secondaries fund. The firm launched its AlpInvest Secondaries Fund V in 2011 and had collected $3.48 billion as of the end of March, according to The Carlyle Group’s first quarter 2013 earnings report. AlpInvest is nearing the close of the $4.6 billion vehicle, Carlyle co-chief executive David Rubenstein said during the March earnings call.
Also in March, the Indiana Public Retirement System selected The Carlyle Group and AlpInvest to manage the $150 million, Indiana Investment Fund II. Carlyle and AlpInvest have since opened an office in Indianapolis as a base for the operations.
AlpInvest has invested more than €23 billion in the past five years.