AlpInvest Partners seeks long-term private equity exposure by providing innovative solutions across a broad range of secondary transaction alternatives, each geared toward satisfying an existing investor's key issues and objectives.
Secondary Investments : Transaction Alternatives
AlpInvest Partners is a flexible partner and provides the following liquidity and restructuring alternatives for private equity investors:
- Purchase of limited partner Interests: The Secondary Investments team can acquire interests in a wide range of private equity partnerships including buyout, growth equity, mezzanine, energy and infrastructure funds. Transactions may encompass either the acquisition of a single limited partner interest in one fund or a portfolio of interests in multiple funds.
- Spin-out: The Secondary Investments team can support the spin-out of captive private equity management teams from larger organizations seeking to reduce or eliminate their private equity exposure. Such transactions typically combine the purchase of an existing portfolio together with a new commitment to the spinout team. The new commitment may be used for follow-on investments in the existing portfolio or for new investments.
- Stapled secondary/primary: A stapled secondary transaction combines the purchase of an existing pool of private equity assets together with the commitment of primary capital to the general partner's next fund. We believe that AlpInvest Partners' integrated platform—combining fund investments, co-investments, and secondary investments—is key to the Secondary Investments team's proven ability to execute on these kinds of deals.
- Portfolio Restructuring: The Secondary Investments team can develop and finance innovative structures that allow investors to rebalance their exposure to private equity assets—including fund interests, direct investments and co-investments—through alternative mechanisms to an outright sale. AlpInvest Partners customizes these solutions to help meet the specific objectives of the existing investor or partnership group.
- Secondary Direct: Sometimes referred to as synthetic secondaries, these are acquisitions of existing direct-investment portfolios. Interested sellers may include general partners seeking liquidity in older fund portfolios or institutions seeking to reduce exposure to certain types of assets.