Stichting Pensioenfonds ABP, Heerlen, Netherlands, and the €69.3 billion ($82.77 billion) Stichting Pensioenfonds PGGM, Zeist, Netherlands, together will make a €11 billion private equity commitment to AlpInvest Partners. Thijs Steger, spokesman for ABP, said the €187 billion fund contributed more than half of the amount; he wouldn't be more specific.
About 70% to 75% of the money will go to private equity funds and the remainder will be split between secondary funds and mezzanine and direct investments, Volkert Doeksen, AlpInvest's managing partner and CEO, said in a telephone interview.
The two pension funds in 1999 established AlpInvest - previously NIB Capital Private Equity - to manage their private equity investments. NIB's banking business was sold to a group of investors led by J.C. Flowers in August, and the private equity arm was renamed AlpInvest.
AlpInvest now manages about €30 billion, with an internal rate of return exceeding 25% in the past year, Mr. Doeksen said.