AEA Private Debt and Carlyle AlpInvest have closed a $550 million credit continuation vehicle. Carlyle AlpInvest led the transaction and will provide additional capital for new loans originated by AEA Private Debt.
The continuation vehicle was set up to purchase a portfolio of first-lien senior secured loans from AEA Middle Market Debt Fund III, which mainly includes loans to sponsor-backed U.S. middle market companies. This structure gives existing investors either liquidity or the option to reinvest in these private credit assets, which will continue to be managed by AEA’s team. The transaction highlights ongoing collaboration between Carlyle AlpInvest and AEA and demonstrates Carlyle AlpInvest’s role in credit secondaries.
Alexandra Jung, Partner and Head of AEA Private Debt, said, “This transaction underscores our commitment to delivering strong outcomes and innovative liquidity solutions for our investors. Our partnership with AlpInvest is a testament to our cycle-tested approach and reflects the strategic growth of AEA’s private debt business. With this continuation fund, we are further bolstering our ability to support leading middle market companies and sponsors while expanding the reach of the AEA Private Debt platform for the long term.”
Mike Hacker, Partner and Global Head of Portfolio Finance at Carlyle AlpInvest, stated, “This transaction reflects the strength of AEA Private Debt’s portfolio and their partnerships with many of the best private equity sponsors. With significant overlap between AEA Private Debt’s relationships and Carlyle AlpInvest’s long history of investing alongside leading sponsors, this transaction highlights the strong alignment between our organizations. We are proud to establish this partnership with AEA and support the continued growth of their private debt platform.”
Stefan Singer, Managing Director on Carlyle AlpInvest’s Portfolio Finance Team added, “Carlyle AlpInvest has a long history of delivering innovative and LP-friendly solutions to GPs across private equity and private credit. The growth of our Secondaries & Portfolio Finance platform continues to strengthen our ability to build impactful and differentiated partnerships with credit managers like AEA Private Debt.”
PJT Partners LP advised on the financial aspects of the deal. Simpson Thacher & Bartlett LLP represented AEA Private Debt as legal counsel; Ropes & Gray LLP acted as legal counsel for Carlyle AlpInvest; Wells Fargo provided financing for the transaction.
AEA Investors manages around $18 billion in invested and committed capital through various strategies including leveraged buyouts, growth equity, and private debt investments. Its investment professionals operate globally from offices in major cities such as New York, London, Munich, San Francisco, Shanghai, Stamford, and Jacksonville.
Since 2005, AEA Private Debt has invested more than $8.5 billion across over 425 transactions involving senior debt, unitranche loans, junior debt, and equity co-investments for middle market companies.
Carlyle AlpInvest oversees $97 billion in assets under management as of June 30, 2025 (www.carlylealpinvest.com). The firm works with more than 600 investors globally from offices located in New York, Amsterdam, Hong Kong, London, and Singapore.
For more information about AEA Investors: www.aeainvestors.com
