Carlyle’s AlpInvest Partners has raked in just under half of the target of its standalone fund focused on portfolio finance.
AlpInvest Strategic Portfolio Finance Fund II has secured $947.8 million in commitments, according to filings with the US Securities and Exchange Commission.
The vehicle is targeting $2 billion with AlpInvest expecting to hold the final close on the vehicle in September, according to documents prepared for Boston Retirement System in April.
AlpInvest’s portfolio finance strategy – which offers preferred and structured equity options as well as more traditional debt offerings – aims to achieve a “consistent fixed income return with an emphasis on downside protection”, according to its website.
“Integrating our portfolio financing solutions with our extensive capabilities in the secondary market, we believe we have created a differentiated one-stop solution provider for the private equity industry,” AlpInvest’s website details.
Recent fund performance
AlpInvest Secondaries Program VII* (2019-vintage): IRR: 25.6%; TVPI 1.28x
AlpInvest Secondaries Program VI** (2016-vintage): IRR: 14%; TVPI 1.57x
Main Fund V – Secondary Investments** (2012-vintage): IRR: 15%; TVPI: 1.84x
*Data as of 30 September 2023
** Data as of 31 March 2024
Source: California Public Employees’ Retirement System. Subscribers can view SI‘s performance data here.
The strategy is led by managing director Michael Hacker, who has been with the firm since 2007.
A spokesperson for AlpInvest had not responded to a request for comment at press time.
Fund II launched in March last year, Secondaries Investor data shows. It is unclear whether there is a predecessor to the vehicle. AlpInvest was set to launch its first Strategic Capital fund in 2022 focused on preferred equity, NAV-based lending and on funding GP commitments, Secondaries Investor reported in 2021. At that time, it had already backed strategic capital deals out of a $1 billion pool of separately managed accounts.
AlpInvest is in market with its flagship secondaries programme, ASP VIII, which has raised $7.45 billion so far, according to the firm’s second-quarter earnings presentation. That vehicle is targeting north of $10 billion, according to Secondaries Investor data. That would put the vehicle ahead of its predecessor which closed on $9 billion in 2020.
The firm is also seeking commitments for its second single-asset continuation fund-focused vehicle, AlpInvest Atom Fund II. Its predecessor closed on $344.7 million, below its $500 million target, SI data shows.
Carlyle’s secondaries assets under management came in at $34 billion at the end of the first half, according to its earnings presentation. Its secondaries and portfolio finance strategy were the key benefactors of the $2.3 billion its global investment solutions business, which includes AlpInvest, raised in the second quarter.
The global investment solutions unit deployed $9 billion and raised $12 billion over the preceding 12 months with Carlyle continuing to “see attractive opportunities across secondaries and co-investments”, chief executive Harvey Schwartz said on the firm’s earnings call earlier this month.
