AlpInvest Partners – Company Profile

Mezzanine financing company overview

Mezzanine firm logo:

AlpInvest Partners - mezzanine financing company logo

Headquarters location:

Netherlands

Typical mezzanine financing range:

EUR10 million up to EUR100 million

Geographic focus:

Global

Industry focus:

Industry agnostic

Company profile

AlpInvest Partners’ only agenda is private equity-related investing and the firm strives to be the partner of choice for all fund, secondary, co-investment, and mezzanine opportunities. The ability to act quickly and decisively is essential to being an effective investor in today’s highly competitive private equity environment.

AlpInvest Partners has been investing mainly on behalf of its major clients APG and PGGM Investments, asset managers for two large Dutch pension funds. In 2011, APG and PGGM transferred the ownership of the management company to The Carlyle Group and AlpInvest management. Effective August 1, 2013, Carlyle acquired the remaining interest in AlpInvest from AlpInvest’s senior management. APG and PGGM will continue to be amongst their most important investors.

AlpInvest Partners is the nexus of innovation for indirect private equity investing. In 1999, AlpInvest Partners became the first exclusive private equity manager for a public pension fund. The firm is duly committed to continually innovating and expanding the indirect private equity investing business model. Through their systematic and creative approach they aim to create attractive investment opportunities.

AlpInvest Partners embraces the complexities inherent to the dramatic scaling occurring within the private equity industry. AlpInvest Partners has the financial scale and global reach to partner with the world’s largest private equity firms as well as the specialized high-performers. The firm’s organizational structure has been deliberately designed to provide exceptional relationship support and integrated insights for all business partners.

AlpInvest Partners harnesses the varied disciplines of its investment teams to anticipate and identify market opportunities. The firm is experienced at conceptualizing innovative and creative solutions. AlpInvest Partners’ investment teams seek to create synergistic opportunities for business partners, whether providing a substantial fund commitment or supporting the timely execution of a co-investment or secondary transaction.

AlpInvest consists of three investment groups:

  • Fund Investments – committed to funds worldwide across the full spectrum of the private equity market.
  • Secondary Investments – focused on completing landmark secondary transactions, many in excess of €1 billion.
  • Co-Investments – ability to invest significant funds alongside private equity sponsors.

Investment philosophy/criteria

AlpInvest Partners’ Co-Investments team’s goal is to create a diversified global portfolio of direct equity and mezzanine investments in leading businesses across all industries.

AlpInvest’s Co-Investments team invests in private equity businesses directly, providing both equity and mezzanine financing to general partners’ portfolio companies. AlpInvest has invested over EUR 6.2 billion in more than 165 equity co-investments and over EUR 1.3 billion in more than 60 mezzanine company investments globally (as per December 31, 2014).

AlpInvest Partners offers:

  • A dedicated team with significant transaction experience
  • An efficient and transparent decision making process
  • The ability to write a significant amount in a transaction
  • Global scale with an integrated approach across its offices

When providing equity financing, the firm plays the co-investment role broadly from participating in a syndication to a co-sponsor position in which case AlpInvest Partners teams up early in the process and actively supports the lead sponsor underwriting a bid. AlpInvest Partners has the appetite to invest from €10 million up to €100 million in a single company with the aim to build a well diversified portfolio. This diversification is accomplished by investing alongside a broad range of partner funds—general partners—in both the middle-market and large buyout segments of the market.

In the situations where AlpInvest Partners provides mezzanine capital it is typically in connection with both leveraged buyouts and later-stage growth financings and their program is a natural extension of their private equity activities. As such, it can broaden the availability of capital to their general partner relationships and the investment scope they offer to their investors. they invest across a broad array of securities and are flexible in their approach from pursuing syndications to co-underwriting transactions. The average size of their investments is approximately €25m.

Investment process overview

AlpInvest Partners’ Co-Investments team seeks to align its decision making process with the requirements of general partners. The Co-Investments team seeks to be efficient and transparent throughout the transaction process. As a flexible partner to general partners and mezzanine lead investors, the team aims to accelerate decision making and ensure consistency by involving key decision makers early in the process.

  • Source deal: The Co-Investments team will discuss opportunities directly with general partners or mezzanine lead investors. Based on these discussions and an initial review, the team will generally quickly inform the general partners or lead investors whether it will move forward or not.
  • Form dedicated team: The Co-Investments team will immediately form a dedicated transaction team of 2 – 4 investment professionals.
  • Efficient due diligence: AlpInvest Partners diligently and confidentially reviews the information provided by the general partner or the lead investor, and the team will share real time feedback with the general partner or mezzanine lead investor on the level of interest and potential issues throughout this stage of the process.
  • Decision making: All decisions are made by AlpInvest Partners’ independent investment committee. If the issues raised earlier in the process are mitigated, the deal can be approved.
  • Documentation & Closing: The Co-Investments team utilizes in-house counsel to help streamline the documentation process and ensure timely funding and close of the transaction.

AlpInvest Partners has invested in a broad range of transactions in North America, Europe and Asia, partnering with both mezzanine and equity relationship general partners.

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