AlpInvest Partners, a unit of the Carlyle Group, has successfully raised $4.1 billion for its ninth co-investment fund, AlpInvest Co-Investment Fund IX (ACF IX), surpassing the $3.5 billion raised for its previous fund in 2021. The fund saw contributions from 185 global investors, including pension funds, asset managers, and family offices. According to Richard Dunne, co-leader of the co-investment team, the enlarged fund reflects strong support from existing investors and solid interest from new entrants looking to gain exposure to private equity buyouts. ACF IX will focus on whole-company acquisitions and equity stakes across global industry sectors, with a particular emphasis on middle-market transactions that offer 15% to 20% discounts compared to peak-period prices. AlpInvest has previously committed over $19 billion across more than 400 equity co-investments during the past 25 years. The extended fundraising timeline for ACF IX helped attract a broader investor base, particularly newcomers to the asset class. AlpInvest’s platform also includes strategies for secondary investments and financing solutions within the private equity space.
The successful fundraising for ACF IX underscores the continued investor appetite for private equity co-investments, particularly in the middle-market segment. By focusing on transactions that offer discounts compared to peak-period prices, AlpInvest aims to deliver attractive returns to its investors. The firm's extensive experience and established track record in the co-investment space further enhance its appeal to both existing and new investors.
However, it's important to note that private equity investments carry inherent risks, including illiquidity and the potential for capital loss. Investors should carefully consider these factors and conduct thorough due diligence before committing capital to such funds. Nonetheless, AlpInvest's successful fundraising efforts reflect confidence in its investment strategy and the broader private equity market.