Carlyle To Take AlpInvest in Management Buyout

Dutch private equity firm AlpInvest Partners will be bought by a joint venture between the Carlyle Group and AlpInvest’s management, Reuters reported. Financial terms were not released. Two Dutch pension managers, APG and PGGM, are selling their stakes in AlpInvest, but will continue to commit funds to the group, Reuters said. AlpInvest has more than 40 billion euros in funds and commitments.

(Reuters) – Dutch-based private equity investor AlpInvest Partners said on Wednesday it would be sold to a joint venture between private equity giant Carlyle Group [CYL.UL] and AlpInvest’s management.

Financial details were not disclosed. AlpInvest has more than 40 billion euros in private equity funds and commitments, including money for two major Dutch pension fund managers. A deal with Carlyle is seen as a springboard for the group to expand.

The two Dutch pension managers APG and PGGM who are selling their stakes said they would continue to commit funds to AlpInvest.

APG is the asset manager for ABP, the world’s third-largest sovereign pension fund. PGGM is the asset manager for PFZW, the pension fund for the Dutch care and welfare sector.

“Carlyle is a strong, long-term partner for AlpInvest. This is critical given the 32 billion euros in commitments we already manage today,” said Volkert Doeksen, Chief Executive of AlpInvest in a statement.

Doeksen, a former Dresdner Kleinwort Benson partner and investment banker at Dillon Read and Morgan Stanley, helped start AlpInvest in 2000 and will stay on as AlpInvest CE0.

Both APG and PGGM said they will commit an additional 10 billion euros to AlpInvest’s various investment programmes for the 2011-2015 period. The deal, which is subject to regulatory approval, is expected to close in March.

The deal would significantly increase Carlyle’s assets under management and allow Carlyle to diversify its businesses as it prepares to follow rivals Blackstone Group and Kohlberg Kravis Roberts & Co to a potential public listing.

Carlyle, which has investments in companies such as Dunkin’ Brands, has been considering an initial public offering for years and may file papers to go public late this year, a source previously told Reuters.

On Wednesday, Carlyle said it had no immediate plans for an IPO.

A deal with AlpInvest could also give Carlyle an unusual window into its rivals’ operations. As AlpInvest’s funds are invested in so many private equity firms’ funds, Carlyle could potentially have greater insight into its rivals’ operations.

According to AlpInvest’s website, its investment portfolio includes funds run by Blackstone, Bain Capital and KKR. (Editing by Sara Webb)