Carlyle Group's AlpInvest and its affiliated investors are now the largest investors in Kinderhook Capital Fund III, following a general partner-led recapitalization of the 2009 middle-market buyout fund that has $300 million in committed capital, according to a news release.
The aggregate value of the portfolio was about $360 million, with remaining limited partners and AlpInvest committing an additional $100 million of capital to grow the portfolio.
Limited partners were given the option to receive full or partial liquidity or keep their fund positions. The total value of the portfolio was about $360 million. AlpInvest and the remaining limited partners committed another $100 million to the fund.
Prior to the current investment but during the COVID-19 crisis, AlpInvest had committed $65 million of preferred equity to provide Kinderhook executives capital to invest in the fund's portfolio companies. AlpInvest rolled its preferred equity into the restructuring transaction.
"This transaction provides our remaining portfolio companies, and their management teams, with additional committed capital to execute organic growth strategies and to pursue strategic acquisitions," said Thomas Tuttle, Kinderhook managing director, in the news release.
Carlyle executives declined to comment beyond the release.
