LPs

AlpInvest loses head of fund-stakes business amid fundraising

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Photo of Sean Gallary sourced from AlpInvest website
  • Gallary took over as head of the business last year
  • Former head of fund stakes Herchel left to join MLC
  • Not clear who will take over the strategy

Turnover continues to roil AlpInvest Partners’ efforts to get into the business of buying minority stakes in GP management companies.

Recently, Sean Gallary, who has led the effort over the past year, quietly stepped away from AlpInvest, a spokesperson confirmed. It’s not clear if AlpInvest has moved someone into that role.

Gallary’s departure comes as Carlyle Group-backed AlpInvest has been targeting at least $500 million for a fund that would buy minority stakes in GP management companies, Buyouts has reported. The fund has been marketed through this year.

The status of the fundraising, in light of Gallary’s departure, is unclear. Carlyle continues to be interested in pursuing the strategy, a source with knowledge of the firm said.

Last year, Marek Herchel, who previously led the GP stakes business at AlpInvest, left to join MLC Private Equity. Gallary then stepped into the role.

At the time, before the group launched a fund, AlpInvest focused on completing a few deals before heading to market, drawing on Carlyle resources to fund a transaction, sources told Buyouts at the time.

Carlyle has competed for such deals but doesn’t appear to have landed one yet.

The GP fund stakes business continues to be dominated by a handful of firms. Neuberger Berman-backed Dyal Capital, which is in market with its fourth GP fund-stakes pool, targeting $5 billion; Goldman Sachs’s Petershill Group and Blackstone Group are the top competitors in the business.

Action Item: Check out AlpInvest’s Form ADV here: https://bit.ly/2sBkDZN