NIB Capital Private Equity, the Dutch private equity business with €14 billion ($17.8 billion) under management and one of Europe’s most active investors in the asset class, is to be spun off by banking parent NIB Capital, which is to focus on its merchant banking activities.
In its annual statement published today, the bank confirmed that it would transfer 100 percent of NIBC Private Equity's shares to ABP and PGGM, the Dutch pension funds that backed the launch of the division in 1999 and also own NIB Capital. The restructuring will be accompanied by a one-off dividend payment of €130 million to the pension funds.
ABP and PGGM took over the former state-controlled bank, then called National Investment Bank, in 1999. The renamed entity then acquired Alpinvest, the Dutch private equity group, changing its name to NIB Capital Private Equity in 2000. The original name of Alpinvest will be revived as part of the transaction.
The spin-off is the completion of a process initiated in 2002, when NIB Capital sold a large proportion of its own portfolio of equity investments to ABP and PGGM in order to improve the bank's risk profile.
Of NIBC 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.
NIBC Private Equity consists of 50 investment professionals operating from offices in Amsterdam, Antwerp, Frankfurt, London and New York.