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peHUB First Read

This morning read all about CalSTRS pledging almost a billion to PE, AlpInvest singing the praises of co-investments, VCs views on Bitcoin and who tops the buyouts distributions list for New Jersey.

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PE Chief at AXA Urging a Management-Led Buyout

As AXA gears up for a possible sale of its private equity unit, executives at the company could find themselves borrowing from The Carlyle Group’s playbook. AXA Private Equity, and particularly its chief executive, Dominique Senequier, are known to be seeking a management-led buyout financed in large part by one of its suitors.
[caption id="attachment_121431" align="alignright" width="180" caption="Dominique Senequier"]Dominique Senequier[/caption]
Such a structure is exactly what Carlyle agreed to when it acquired a 50 percent voting stake (and 60 percent of the equity) in AlpInvest Partners, one of Europe’s largest fund-of-fund managers, earlier this year. For Carlyle, the merger helped to diversify its slate of businesses, and more importantly, helped to increase its tally of assets under management prior to its expected IPO next year.

For AXA Private Equity’s investors, a management-led buyout would offer incentives for keeping employees on board, something especially crucial in an era of “key-man” provisions. Senequier’s preference for a management-led buyout was first reported in the Financial Times.

Slideshow: European Fund-of-Funds Build Up U.S. Offices

One thing is for sure in the European private equity fund managers’ space, a US presence is a must-have if you want to assert yourself as a global player and have credibility with your investors.
This seems to count for both the veteran giants with tens of billions in their coffers such as Netherlands-based AlpInvest, UK-based Pantheon and Swiss-based Partners Group as well as the more modest players with single figure billions under management such as Switzerland- based fund-of-funds Adveq and CapVent and, most recently, London-based Hermes GPE.

Slideshow: Spinning Their Way to New Investors

Investment firms are being spun out of banks left and right—some, to keep companies in compliance with the new requirements imposed on banks via Dodd-Frank. peHUB has been tracking some of the spin-outs seeking capital, and some others, that have not yet needed to fundraise—but soon, might. While the fundraising market has been generous to some private equity firms, other PE shops could face difficulty bringing in capital absent of their big-brother LPs. Only time will tell….

Slideshow: Don’t Let Momentum Slip–And Other Top Fundraising Tips

The market is teeming with fundraising hopefuls, from spin-out groups seeking modest sums to mega-firms after multi-billion-dollar war chests. Around the world, more than 1,600 private equity funds are in the market seeking an estimated $673 billion, according to data provider Preqin. It’s a measure of the difficulty of securing commitments that so far their […]

Newly Merged Carlyle/AlpInvest Signs MERS in $750M Deal

In an effort to build a bigger private equity portfolio, the $6.5 billion Municipal Employees Retirement System of Michigan has engaged a newly merged Carlyle and AlpInvest to manage as much as $750 million of the pension’s money.

The pension currently has a 9.6 percent allocation to private equity, or slightly more than $630 million in invested capital.

The new MERS initiative calls for $500 million to be invested by AlpInvest, the Netherlands-based fund-of-funds unit of Carlyle, plus $250 million to be invested by Carlyle’s managed funds group. The investment contract is for five years.

The Washington D.C.-based Carlyle Group, which now manages about $150 billion in assets, agreed in January to merge with AlpInvest. That merger, which was originally slated to close in March, had been delayed until July 1. The MERS deal is the first asset management deal to be announced by the newly merged private equity firm.

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