AlpInvest, a private equity platform under Carlyle, has announced the closing of its second securitization, a $1 billion Collateralized Fund Obligation (CFO). This CFO is noted as the largest publicly rated GP-Led CFO in the market to date. The offering exceeded its initial target of $800 million due to strong investor demand.
The AlpInvest CFO will include exposure to four funds managed by AlpInvest, covering Private Equity Secondaries, Portfolio Finance, and Co-Investment strategies. Additionally, it involves two recent private equity secondary transactions with diversified portfolios of LP interests.
AlpInvest has over 20 years of experience in building global private equity portfolios and currently manages assets exceeding $80 billion for more than 500 limited partners. The underlying portfolio for this CFO aims to provide investors with diversified exposure across different regions and fund strategies.
Michael Hacker, Managing Director and Global Head of Portfolio Finance at AlpInvest, expressed satisfaction with the offering’s closure: “We are pleased to have closed our collateralized fund obligation offering and proud of the strong backing we received from both new and existing investors across the Carlyle and AlpInvest platforms, including insurance companies, other larger institutional investors, and family offices.” He further highlighted the unique investment opportunity presented by this securitization due to its diversification characteristics and innovative structure.
Evercore acted as the Sole Structuring Advisor and Bookrunner for this offering while Ropes & Gray LLP served as legal advisor to AlpInvest.
