AlpInvest Partners is a Dutch

private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a typ ...

asset manager with over $47 billion of assets under management as of September 30, 2017. The firm invests on behalf of a broad range of

institutional investor An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linked co ...

s from North America, Asia, Europe, South America and Africa. AlpInvest operates three investment teams focused on private equity: Fund Investments, Secondary investments and

Co-Investments An equity co-investment (or co-investment) is a minority investment, made directly into an operating company, alongside a financial sponsor or other private equity investor, in a leveraged buyout, recapitalization or growth capital transaction. I ...

. AlpInvest pursues investment opportunities across the entire spectrum of private equity including: large buyout, middle-market buyout,

venture capital Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to start-up company, startups, early-stage, and emerging companies that have been deemed to have high growth poten ...

growth capital Growth capital (also called expansion capital and growth equity) is a type of private equity investment, usually a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new mar ...

mezzanine A mezzanine (; or in Italian, a ''mezzanino'') is an intermediate floor in a building which is partly open to the double-height ceilinged floor below, or which does not extend over the whole floorspace of the building, a loft with non-sloped ...

, distressed and energy investments, including

sustainable energy Energy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs". Most definitions of sustainable energy include considerations of environmental aspects such as green ...

investments. As of the end of 2017, the firm had invested in more than 600

private equity fund A private equity fund (abbreviated as PE fund) is a collective investment scheme used for making investments in various equity (and to a lesser extent debt) securities according to one of the investment strategies associated with private equit ...

s managed by more than 300

private equity firm A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including le ...

s. According to the PEI 300, AlpInvest ranked among the 50 largest private equity firms globally. Since 2011, AlpInvest has operated as a subsidiary of

The Carlyle Group The Carlyle Group is a multinational private equity, alternative asset management and financial services corporation based in the United States with $376 billion of assets under management. It specializes in private equity, real assets, and ...

, a global private equity firm. Prior to 2011, AlpInvest has been owned through a joint venture of its two clients, the Dutch pension funds ( ABP and PFZW). Founded in 2000, AlpInvest has offices in

New York New York most commonly refers to: * New York City, the most populous city in the United States, located in the state of New York * New York (state), a state in the northeastern United States New York may also refer to: Film and television * '' ...

Amsterdam Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the Capital of the Netherlands, capital and Municipalities of the Netherlands, most populous city of the Netherlands, with The Hague being the seat of government. It has a population ...

Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...

San Francisco San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...

and Indianapolis with over 75 investment professionals and over 150 employees.

Investment Programs

185px, The company flag outside its office in Amsterdam, left With over $55 billion of funds under management, AlpInvest is one of the largest investors in the private equity asset class globally. AlpInvest pursues investment opportunities across the entire spectrum of private equity including: large buyout, middle-market buyout,

, distressed and

investments. AlpInvest also invests across the range of private equity investment channels: * Primary fund investments * Secondary investments *

Co-investments An equity co-investment (or co-investment) is a minority investment, made directly into an operating company, alongside a financial sponsor or other private equity investor, in a leveraged buyout, recapitalization or growth capital transaction. I ...

AlpInvest invests primarily in private equity

limited partnership A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited ...

s and effectively acts as a fund investor, making commitments to

s globally. Among the most notable firms with which AlpInvest is invested include:

Kohlberg Kravis Roberts KKR & Co. Inc., also known as Kohlberg Kravis Roberts & Co., is an American global investment company that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its stra ...

Blackstone Group Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate ...

Providence Equity Partners Providence Equity Partners L.L.C. is a specialist private equity investment firm focused on media, communications, education, technology investments across North America and Europe. The firm specializes in growth-oriented private equity investme ...

and

TPG Capital TPG Inc., previously known as Texas Pacific Group and TPG Capital, is an American investment company based in Fort Worth, Texas. The private equity firm is focused on leveraged buyouts and growth capital. TPG manages investment funds in growth ...

as well as many of the leading middle-market private equity firms and venture capital firms. AlpInvest will invest with these firms either by making commitments to new investment funds or by purchasing funds through the

private equity secondary market In finance, the private-equity secondary market (also often called private-equity secondaries or secondaries) refers to the buying and selling of pre-existing investor commitments to private-equity and other alternative investment funds. Given t ...

. AlpInvest is one of the largest private equity

fund Fund may refer to: * Funding is the act of providing resources, usually in form of money, or other values such as effort or time, for a project, a person, a business, or any other private or public institution ** The process of soliciting and gath ...

investors and is also among the largest and most active and experienced investors in

private equity secondaries In finance, the private-equity secondary market (also often called private-equity secondaries or secondaries) refers to the buying and selling of pre-existing investor commitments to private-equity and other alternative investment funds. Given th ...

. AlpInvest also invests directly alongside some of the largest private equity investors through an active co-investment program and will make

mezzanine debt In finance, mezzanine capital is any subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares. Mezzanine financings can be structured either as debt (typic ...

investments into companies owned by

financial sponsor A financial sponsor is a private-equity investment firm, particularly a private equity firm that engages in leveraged buyout transactions. Sponsors and management In addition to bringing capital to a deal, financial sponsors are expected to bri ...

s. Following this spin-off of its European middle market

leveraged buyout A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money ( leverage) to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loa ...

platform, which was subsequently renamed Taros Capitaltaroscapital.com
AlpInvest, by itself, no longer makes control investments directly in

privately held A privately held company (or simply a private company) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in the respective listed markets, but rather the company's stock is ...

companies, but rather invests alongside selected private equity managers.

History

AlpInvest as it is currently known, was established in 2000 as an initiative by its two sponsors, the Dutch pension funds ABP and PFZW (then

PGGM Stichting Pensioenfonds Zorg en Welzijn (known as PFZW, formerly PGGM, translation: "Pension Fund for Care and Well-Being") is the second largest pension fund in the Netherlands. As of 31 December 2014, PFZW had total assets under management of ...

), to create an independent and professional manager for their private equity allocations. AlpInvest's predecessor, NIB Capital Private Equity, originally operated as one integrated investment firm with distinct teams focusing on fund investments as well as lead buyout investments in mid-sized companies located in the

Benelux The Benelux Union ( nl, Benelux Unie; french: Union Benelux; lb, Benelux-Unioun), also known as simply Benelux, is a Political union, politico-economic union and formal international intergovernmental cooperation of three neighboring states in ...

and

Germany Germany, officially the Federal Republic of Germany (FRG),, is a country in Central Europe. It is the most populous member state of the European Union. Germany lies between the Baltic and North Sea to the north and the Alps to the sou ...

. As the firm evolved, AlpInvest shifted its focus toward an expansion of its investment management business. In 2000, AlpInvest expanded its investment platform, by creating a dedicated equity co-investment team to invest in transactions alongside its core private equity managers. The following year, in 2001, the firm began a formal effort to make mezzanine investments. A year later, in 2002, AlpInvest launched a secondary investment platform, which has emerged as one of the largest buyers of private equity assets in the secondaries market.

Milestones

The following is a timeline of significant milestones: * 1980s - Both ABP and PGGM begin separate in-house private equity investment programs, investing primarily in private equity funds. * 1990s - Alpinvest Holding N.V., an evergreen investment fund, is founded and Stan Vermeulen is named CEO in 1993. Alpinvest Holding N.V. provided private equity and mezzanine capital to middle market companies in

and Germany until its acquisition by ABP and PGGM in 2000. * 1997 - Alpinvest Holding N.V. begins trading on the

Amsterdam Stock Exchange Euronext Amsterdam is a stock exchange based in Amsterdam, the Netherlands. Formerly known as the Amsterdam Stock Exchange, it merged on 22 September 2000 with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext. The ...

on 11 June 1997. Major shareholders in Alpinvest Holding N.V. included the Dutch government and ABN Amro Bank NV. * 1999 - ABP and PGGM form NIB Capital Private Equity, the predecessor of AlpInvest under the leadership of Volkert Doeksen, in order to increase position in the private equity market. NIB Capital is formed from several separate teams from NIB Bank NV and Parnib Holding NV. * 2000 - Alpinvest Holding N.V. is acquired by ABP and PGGM, and integrated into Parnib Holding N.V. and NIB Capital Private Equity to form what would become AlpInvest Partners. ABP and PGGM topped a bid from GIMV to acquire the listed investment fund. NIB Capital receives its first mandate of €13 billion from ABP and PGGM of which close to €7 billion is designated for new investments in the period 2000–2002. The remainder comprised existing investments made by ABP, PGGM and NIB Capital's predecessors. * 2000 - AlpInvest changes its name to NIB Capital Private Equity and begins a dedicated equity co-investment group. * 2001 - NIB Capital opens New York office. * 2002 - NIB Capital begins a dedicated secondary investment effort with a €1 billion mandate. * 2003 - NIB Capital receives a new €7 billion mandate from ABP and PGGM, covering the period 2003–2005, for fund investments, secondary investments, co-investments and lead investments in the Benelux/German mid-market. Alpinvest Carlyle 2011 26 01

* 2004 - NIB Capital Private Equity spun out to ABP and PGGM and renamed "AlpInvest Partners". * 2006 - AlpInvest receives a new investment mandate from ABP and PGGM initially amounting to €11 billion, covering the period 2006–2008 (the mandate size increased over time). This represented one of the largest mandates ever granted in the international private equity markets. * 2006 - AlpInvest spins off its European middle market buyout business, which is subsequently renamed Taros Capital in order to focus exclusively on investments in private equity funds and alongside relationship

s. * 2006 - AlpInvest opens its first Asian office in Hong Kong. * 2007 - AlpInvest receives a €2 billion mandate to invest in global

transactions and a €500 million

Cleantech Clean technology, in short cleantech, is any process, product, or service that reduces negative environmental impacts through significant energy efficiency improvements, the sustainable use of resources, or environmental protection activities. Cl ...

investment covering the period 2007–2009. * 2008 - AlpInvest opens London office. * 2011 - AlpInvest acquired by a joint venture between management and

* 2013 - AlpInvest raises $4.2 billion of investor commitments for its AlpInvest Secondaries Program, focused on secondary investments * 2013 -

acquires 100% ownership interest in AlpInvest

Awards

In recent years, AlpInvest has won several industry awards as a limited partner.

Private equity fund investments

AlpInvest is among the largest investors in private equity funds, globally, historically allocating as much as €4 billion per year to leveraged buyout (large-cap, middle-market, lower middle market), venture capital and special situations funds, among other strategies. AlpInvest maintains relationships with many of the leading managers in difficult to access segments of private equity. In many cases, AlpInvest is a strategic investor and tends to be among the largest investors in each fund in which it invests. AlpInvest's funds team is made up of more than 25 professionals based globally in Europe, North America and Asia.

Secondary investments

AlpInvest's secondary investments group focuses on the purchase of existing portfolios of private equity assets. In the secondary market, AlpInvest operates as an independent investment group with a large dedicated team, comparable to other secondary firms and is one of the largest buyers of private equity assets in the secondaries market. AlpInvest's secondary investments include purchases of limited partnership interests, spin-outs of captive private equity groups, stapled secondary transactions, securitizations, joint ventures and secondary direct transactions. Although most secondary transactions are kept confidential, the following transactions have been disclosed:AlpInvest Secondary Investments : Case Studies

Private equity and mezzanine co-investments

AlpInvest traditionally invests alongside leading financial sponsors in leveraged buyouts and growth capital transactions. Since inception, AlpInvest has invested more than €3 billion in over 100 transactions and is among the most active co-investors in private equity transactions. The firm's dedicated co-investment team is made up of more than 25 professionals across its equity and mezzanine products operating in Europe, North America and Asia. The following is a list of selected notable companies that AlpInvest has invested in alongside other private equity general partners, either as an equity co-investor or as a mezzanine debt provider: ''Source: AlpInvest website''

Investors and beneficiaries

AlpInvest's primary beneficiaries are the 4.8 million participants in the

pension fund A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income. Pension funds typically have large amounts of money to invest and are the major investors in listed and priva ...

Stichting Pensioenfonds ABP Stichting Pensioenfonds ABP ("National Civil Pension Fund"), frequently referred to as ABP, is the pension fund for government and education employees in the Netherlands. For the quarter ended 31 December 2014, ABP had 2.8 million participants and ...

(ABP) and

Stichting Pensioenfonds Zorg en Welzijn Stichting Pensioenfonds Zorg en Welzijn (known as PFZW, formerly PGGM, translation: "Pension Fund for Care and Well-Being") is the second largest pension fund in the Netherlands. As of 31 December 2014, PFZW had total assets under management of ...

(PFZW, formerly PGGM), both based in the

Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...

. ABP and PFZW collectively had assets of over $500 billion as of December 31, 2012 and are among the largest

pension funds A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income. Pension funds typically have large amounts of money to invest and are the major investors in listed and priva ...

in the world. Prior to 2011, AlpInvest had not historically solicited capital from other investors or institutions. Following its spinout from the Dutch pension funds, AlpInvest has been actively raising capital from institutional investors in North America, Europe, Asia, South America and Africa. Among AlpInvest's most notable U.S. clients are Municipal Employees' Retirement System of Michigan (MERS) and Indiana Public Retirement System (INPRS).The Carlyle Group and AlpInvest Assume Management of Two Indiana Life Sciences Funds of Funds Totaling $130 Million
. Business Wire, October 17, 2013

Notes

References

AlpInvest Partners N.V.: Private Company Information
(BusinessWeek)
Volkert Doeksen: Financial News 100 Most influential people 2006 (#56)

AlpInvest Partners Presentation for Netspar
12 June 2007
Firms seek a better class of investor
eFinancialNews, 2008)
AlpInvest receives €2bn mezzanine mandate from ABP, PGGM
(AltAssets, 2007)
AlpInvest cuts support for buyout firms
(DowJones Financial News, 2007)
Dutch Treat
(TheDeal.com, 2003)
Speech:Volkert Doeksen, The French Senate
AFIC's Annual Conference on Private Equity, Monday April 3, 2006.
Europeans step up to global battlefield

Private Equity News ''Private Equity News'' is a Europe-based business magazine about the private equity industry. It is part of media organisation Dow Jones and is a sister title to '' Financial News'', Private Equity Analyst and '' The Wall Street Journal''. Th ...

, p. 13-16
AlpInvest 2008 Annual Review2008 Annual ReportAlpInvest 2009 Annual Review2009 Annual Report

External links

*'
AlpInvest Partners
'' (official website) {{DEFAULTSORT:Alpinvest Partners Private equity firms of the Netherlands Private equity secondary market Companies based in Amsterdam Multinational companies headquartered in the Netherlands Financial services companies established in 2000 Alternative investment management companies Mezzanine capital investment firms