AlpInvest Partners is a private equity investment manager and at the end of 2009 globally managed over €42 billion (approximately $55 billion).
Founded in 1999, AlpInvest has historically been the exclusive manager of private equity investments for the investment managers of two of the world's largest pension funds Stichting Pensioenfonds ABP (ABP) and Stichting Pensioenfonds Zorg en Welzijn (PFZW), both based in the Netherlands. In 2011, the firm was acquired by a joint venture between AlpInvest management and The Carlyle Group.
AlpInvest pursues investment opportunities across the entire spectrum of private equity including: large buyout, middle-market buyout, venture capital, growth capital, mezzanine, distressed and sustainable energy investments. The firm also invests through a range of private equity investment channels, which include: new fund commitments, secondary market purchases, equity co-investments and mezzanine investments.
AlpInvest has offices in New York, Amsterdam, Hong Kong and London with over 70 investment professionals and over 115 employees.
Investment Programs
With over €45 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,
venture capital,
growth capital,
mezzanine,
distressed and
sustainable energy investments. AlpInvest also invests across the range of private equity investment channels:
Primary fund investments
Secondary investments
Equity co-investments
Mezzanine investments
AlpInvest invests primarily in private equity limited partnerships and effectively acts as a fund investor, making commitments to private equity funds globally. Among the most notable firms with which AlpInvest is invested include: Kohlberg Kravis Roberts, Blackstone Group, Providence Equity Partners and TPG Capital 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. AlpInvest is one of the largest private equity fund investors and is also among the largest and most active and experienced investors in private equity secondaries.
AlpInvest also invests directly alongside some of the largest private equity investors through an active co-investment program and will make mezzanine debt investments into companies owned by financial sponsors.
Following this spin-off of its European middle market leveraged buyout platform, which was subsequently renamed Taros Capital, AlpInvest, by itself, no longer makes control investments directly in privately held companies, but rather invests alongside selected private equity managers.
Investors and beneficiaries
AlpInvest's primary beneficiaries are the 4.8 million participants in the
pension funds
Stichting Pensioenfonds ABP (ABP) and
Stichting Pensioenfonds Zorg en Welzijn (PFZW, formerly PGGM), both based in the
Netherlands.
ABP and PFZW collectively had assets of over $300 billion as of December 31, 2009 and are among the largest pension funds in Europe.
AlpInvest has not historically solicited capital from other investors or institutions.
History
AlpInvest as it is currently known, was established in 1999 as an initiative by its two sponsors, the Dutch pension funds
ABP and
PFZW (then
PGGM), 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 and Germany. 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.
Today, AlpInvest focuses exclusively on its investment management business as a fund investor as well as secondary investor and equity and mezzanine co-investor and has grown into one of the largest investors in the private equity asset class.
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., a 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 Benelux and Germany until its acquisition by ABP and PGGM in 2000.
1997 - Alpinvest Holding N.V. begins trading on the Amsterdam Stock Exchange 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 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.
.]]
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 financial sponsors.
2006 - AlpInvest opens its first Asian office in Hong Kong.
2007 - AlpInvest receives a €2 billion mandate to invest in global mezzanine debt transactions and a €500 million Cleantech investment covering the period 2007–2009.
2008 - AlpInvest opens London office.
2011 - AlpInvest acquired by a joint venture between management and The Carlyle Group
Awards
In recent years, AlpInvest has won several industry awards based on its position as a leading limited partner.
This award was initiated in 2005. AlpInvest was the first recipient.
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 follows a deliberate allocation process that includes a top-down segment analysis and bottom-up general manager selection. The firm's funds team is made up of more than 25 professionals based globally in Europe, North America and Asia.
The following is a list of selected, notable private equity firms, with which AlpInvest has disclosed an investment as a limited partner, through its primary and/or secondary investment practices (the total list includes over 250 firms):
Source: AlpInvest website
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 leading 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:
Date |
Deal Description |
Ref. |
2010 |
AlpInvest purchased a portfolio of European private equity funds valued at EUR 400 million. |
|
2008 |
AlpInvest, together with Goldman Sachs Capital Partners and CPP, purchased a portfolio of interests in 32 European companies managed by AAC Capital Partners from ABN AMRO for $1.5 billion. |
|
2008 |
AlpInvest, together with Goldman Sachs, purchased $400 million of interests in legacy investment funds managed by Court Square Capital Partners from Citigroup. |
|
2008 |
AlpInvest, together with HarbourVest Partners, Pantheon Ventures, Partners Group, Paul Capital Partners, Portfolio Advisors and Procific completed a takeover of Macquarie Capital Alliance Group in one of the first public to private transactions of a publicly traded private equity company completed by secondary market investors. |
|
2006 |
AlpInvest underwrote the equity of a $500 million newly formed vintage fund-of-funds consisting of approximately 40 underlying private equity partnerships in a joint venture with Swiss Re and Horizon 21, a fund manager. |
|
2006 |
AlpInvest, together with Coller Capital and Goldman Sachs underwrote the equity tranche of Astrea, an $800 million securitization, of 46 private equity fund interests owned by Temasek, a Singapore based sovereign wealth fund. |
|
2006 |
AlpInvest, together with HarbourVest Partners, completed a secondary transaction involving the establishment of a new fund, Paragon Partners. As a result of the transaction, Paragon Partners acquired an existing portfolio of three European companies providing an exit to German private equity fund manager Afinum. |
|
2005 |
AlpInvest, together with AXA Private Equity, purchased a cornerstone interest in West Private Equity, subsequently renamed Lyceum Capital, and simultaneously made a new commitment to Lyceum Capital's second fund. |
|
2005 |
AlpInvest, together with Lexington Partners purchased a $1.2 billion private equity portfolio from Dayton Power & Light, consisting of 46 fund interests. At the time of its completion, the DPL transaction represented one of the largest private equity funds portfolios acquired in the secondary market. |
|
2003 |
AlpInvest was a lead investor in the €1.5 billion divestiture by Deutsche Bank of its direct and co-investment portfolio of private equity interests, consisting of over 100 underlying companies. The sale was part of a spin-out of what would become the private equity firm, MidOcean Partners. At the time of its completion, the MidOcean transaction was the largest secondary market completed.
|
|
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:
Investment |
Date |
Financial Sponsor(s) |
Company Description |
Ref. |
Alliance Boots |
Apr 2007 |
KKR |
A British based pharmacist and retailer |
|
Alltel |
May 2007 |
TPG Capital, GS Capital Partners |
A mobile telecommunications company |
|
AMC Theatres |
Dec 2004 |
J.P. Morgan Partners, Apollo Management |
The second largest movie theatre chain in North America. |
|
Avago Technologies |
Dec 2005 |
KKR; Silver Lake Partners |
The former semiconductor products division of Hewlett Packard and later Agilent Technologies |
|
Avaya |
Oct 2007 |
Silver Lake Partners |
A telecommunications company specializing in enterprise telephony and call center technology |
|
Biomet |
June 2007 |
KKR |
A medical device manufacturer of artificial joints |
|
Bushnell Corporation |
2007 |
MidOcean Partners |
Leading manufacturer of binoculars, spotting scopes, telescopes, night vision equipment, GPS and other optics and imaging products |
|
Capio |
Nov 2006 |
Apax Partners |
A leading European healthcare provider |
|
CEVA Logistics |
Aug 2006 |
Apollo Management |
A logistics company, formerly known as TNT Logistics |
|
Dollar General |
Mar 2007 |
KKR, GS Capital Partners |
A chain of discount stores operating in the U.S. |
|
Education Management Corporation |
Oct 2006 |
Providence Equity Partners, GS Capital Partners, Leeds Equity Partners |
A private operator of post-secondary educational institutions in North America |
|
Expro |
June 2008 |
Candover, Goldman Sachs |
A leading British-based oil and gas well management business |
|
Fairmount Food Group |
May 2003 |
GTCR Golder Rauner |
A food products supplier |
|
Ferretti Motors |
October 2006 |
Candover, Permira |
An Italian yacht-building conglomerate (originally acquired in 1995 and taken private again in 2001) |
|
Gala Coral Group |
Aug 2005 |
Candover, Cinven, Permira |
A British betting shop, bingo and casino operator |
|
Gemplus International |
Dec 2005 |
TPG Capital |
A vendor of smart cards and other digital security products |
|
Grupo ONO |
Nov 2005 |
Providence Equity Partners, CCMP Capital, THL Partners, Quadrangle |
A Spanish broadband company, providing telephone, television and Internet services |
|
Harrah's Entertainment |
Jan 2008 |
Apollo Management, TPG Capital |
A gaming company that owns and operates casinos, hotels, and six golf courses |
|
Iasis Healthcare |
May 2004 |
TPG Capital |
A hospital operating company |
|
IMS Health |
Nov 2009 |
TPG Capital |
Supplier of sales data and consulting services to the pharmaceutical industry |
|
Jostens |
July 2003 |
DLJ Merchant Banking Partners, Investcorp, MidOcean Partners |
A producer of high school and college class rings and publisher of school yearbooks |
|
LA Fitness |
May 2007 |
Madison Dearborn, CIVC Partners |
An American health club chain |
|
Masonite International |
Dec 2004 |
KKR |
A producer of doors, door components and door entry systems, door components and door entry systems |
|
Nielsen Company |
Jan 2006 |
Blackstone Group, KKR |
A global information and media company (formerly known as VNU) |
|
Nuveen investments |
June 2007 |
Madison Dearborn |
An investment management company that provides a suite of mutual funds, particularly in municipal securities |
|
NXP Semiconductors |
Aug 2006 |
KKR, Silver Lake Partners |
A semiconductor company formerly part of Philips |
|
Nycomed |
Mar 2005 |
Nordic Capital |
A European pharmaceutical company |
|
Roundy's |
Jun 2002 |
Willis Stein & Partners |
A supermarket chain based in the midwestern U.S. |
|
SBS Broadcasting Group |
June 2007 |
Permira, KKR |
A European broadcasting group, operating television, premium pay channels, radio stations and print businesses |
|
Seven Media Group |
Dec 2006 |
KKR |
A media joint venture between with Australian Seven Network Limited formed in December 2006 |
|
Sports Authority |
Jan 2006 |
Leonard Green & Partners |
A leading retailer of sporting goods in the U.S. |
|
Spyder Active Sports |
July 2004 |
Apax Partners |
A manufacturer of branded ski apparel and the largest ski-specialty brand |
|
SunGard |
Mar 2005 |
Silver Lake Partners, Bain Capital, the Blackstone Group, Goldman Sachs Capital Partners, KKR, Providence Equity Partners, Texas Pacific Group |
A provider of software and services to education, financial services and public sector organizations, acquired by a one of the largest consortia of private equity investment firms |
|
TXU (renamed Energy Future Holdings) |
Feb 2007 |
KKR, TPG Capital, Goldman Sachs |
An energy company based in Texas, acquired in a $45 billion leveraged buyout, which at the time of its announcement, was the largest buyout in history |
|
Univision Communications |
Mar 2007 |
Madison Dearborn, Providence Equity Partners, TPG Capital, L.P., THL Partners, Saban Capital Group |
A Spanish language television broadcaster in the U.S. |
|
Vendex (renamed Maxeda) |
Mar 2004 |
KKR |
A Netherlands based retail group that operates: Brico, de Bijenkorf, Claudia Sträter, M&S;, Praxis and Vroom & Dreesmann and formerly operated HEMA, Hunkemöller, and Praxis |
|
Visma |
May 2006 |
HgCapital (Engel Holding AS) |
A Norwegian company providing enterprise resource planning and customer relationship management software and services |
|
Warner Chilcott |
Oct 2004 |
CCMP Capital, Bain Capital, DLJ Merchant Banking Partners, THL Partners |
A specialty pharmaceutical company producing branded prescription products in women's healthcare and dermatology in the U.S. |
|
Weather Channel |
Sep 2008 |
Blackstone Group, Bain Capital, NBC Universal |
A media company operating The Weather Channel cable network |
|
Source: AlpInvest website
See also
Volkert Doeksen
Stichting Pensioenfonds ABP
Stichting Pensioenfonds Zorg en Welzijn (PFZW)
External links
AlpInvest Partners (official website)
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, p. 13-16
AlpInvest 2008 Annual Review, 2008 Annual Report
AlpInvest 2009 Annual Review, 2009 Annual Report
Category:Private equity firms
Category:Private equity secondary market
Category:Companies of the Netherlands
Category:Multinational companies headquartered in the Netherlands
Category:Companies established in 1999
Category:Alternative investment management companies