APG and PGGM agreed to sell AlpInvest to Carlyle and AlpInvest management, according to a joint announcement by the four companies.
Financial terms were not disclosed.
AlpInvest has €32.3 billion ($43.3 billion) in assets under management, including funds of funds, direct investments, secondary interests and mezzanine co-investments mostly managed for APG and PGGM. What is now AlpInvest was first established in 1999 as a joint venture with APG and PGGM each owning a 50% stake.
The decision to sell AlpInvest will “enable AlpInvest, APG and PGGM to pursue their own respective multiclient strategies,” according to the announcement.
APG, which manages the €231 billion Stichting Pensioenfonds ABP, Heerlen, Netherlands, and PGGM, which manages the €97.3 billion Pensioenfonds Zorg en Welzijn, Zeist, Netherlands, will remain AlpInvest's core clients.
As part of the deal, APG will commit a further €7 billion and PGGM will commit another €3 billion to AlpInvest between 2011 and 2015. Both APG and PGGM will also collaborate with Carlyle and AlpInvest to “share ideas and practices regarding how to enhance Carlyle's integration of environmental, social and governance issues into its controlling private equity investments throughout its portfolio,” according to the announcement.
AlpInvest's board will have an equal number of members from Carlyle and AlpInvest and will be chaired by AlpInvest CEO Volkert Doeksen. AlpInvest will retain “complete discretion over all investment decisions,” according to the announcement. The firm will also maintain “an information firewall” with Carlyle to safeguard potentially sensitive information about Carlyle's competitors. Pending regulatory approval, the transaction is expected to close in March.
“Carlyle's global network and respected brand will help AlpInvest broaden our investor base and product scope,” Mr. Doeksen said in the announcement.