AlpInvest appreciates inquisitive, active investors like AP6

AlpInvest’s head office in Amsterdam. Cecilia Gross Friberger, Investment Director at AP6 and head of the collaboration with AlpInvest. Rob de Jong, Managing Director and head of AlpInvest Partners’ Team for Co-investment. Wouter Moerel, Head of AlpInvest Partners’ Secondary Investments Team.
Photos: Johan Olsson

AlpInvest is not only a professional investor, but also a skilled problem-solver. Thanks to its deep knowledge of both GPs and LPs, AlpInvest can be an attractive partner to GPs for co-investments while simultaneously offering innovative solutions to both LPs and GPs that would like to divest their holdings. AlpInvest appreciated that AP6 had brought a long list of questions to the bargaining table. It gave the company a chance to understand what AP6 felt was important and what its needs were.

“You had a lot of questions about sustainability, finance, legal issues, fund investments, co-investment and secondary solutions. You also wanted to meet employees with different types of expertise from our entire organization. My impression was that you were applying a holistic approach aimed at understanding AlpInvest and that you wanted to set up a long-term relationship,” says Rob de Jong, Managing Director. He is also in charge of the AlpInvest Partners’ Team for Co-investment.
AlpInvest is one of the major global investors in private equity. They invest in funds, secondaries and in co-investments. AP6 has extensive experience of investing in unlisted assets, both via funds and in collaboration with other players. Besides experience and expertise, AP6 feels that getting to know its partners and building long-term relationships with them is very important.
“Getting to know and understand each individual partner takes time, energy and commitment. But everyone benefits from it in the end.  That applies regardless of whether we’re discussing interesting investments, or any problems or challenges that arise,” says Cecilia Gross Friberger, Investment Director at AP6 and head of the collaboration with AlpInvest.
Extensive experience and a high level of expertise makes it possible for AlpInvest to identify and propose various investment opportunities to its investors. For example, with fund investments and secondary transactions. AP6 has committed capital to Alpinvest’s Secondary Fond VI, which acquires shares in other funds. It has also co-invested in secondary transactions together with Fund VI. 

Secondary is more than a transaction – it’s all about impact

“Working with the secondary market is all about solving problems and identifying opportunities. If the approach with secondaries is reduced to simply buying various fund units from different LPs, it will, by default, be the same as buying index funds in the secondary market. Our goal, however, is to get involved and create the conditions for something more than just fund units changing owner,” says Wouter Moerel, Head of AlpInvest Partners’ Secondary Investment Team.
That’s exactly what it was all about when Alpinvest acquired seven companies from the private equity firm, Eurazeo. Eurazeo not only wanted to expand its base of investors (LPs) but also make additional investments for growth and value creation in the seven companies. AlpInvest came up with a solution involving stepwise implementation. The companies would be transferred to a new fund, with Eurazeo maintaining its role as GP.
AlpInvest knew which LPs would be right for the new arrangement and they were contacted. AP6 was one of them and it participated by co-investing in the new fund. The solution made it possible for Eurazeo to continue developing the companies, in a new fund and with both new and prior investors.

“Getting to know and understand each individual partner takes time, energy and commitment. But everyone benefits from it in the end. That applies regardless of whether we’re discussing interesting investments, or any problems or challenges that arise,” says Cecilia Gross Friberger, Investment Director at AP6 and head of the collaboration with AlpInvest.

At the same time, new relationships and first-time collaborations were set up, like between AP6 and Eurazeo.
“Our knowledge of AP6 and other potential new partners could be crucial to the private equity firm choosing to do business. Our job is to solve different types of problems and meet the needs of both the seller, and the new owners. That’s how we’re able to close deals that otherwise would probably never have made it off the starting blocks,” says Wouter Moerel.

Knowledge of the stakeholders involved is crucial

For co-investment, the same philosophy applies. Without knowledge of the players involved, many deals would never close.
“We value an LP like AP6, who understands our business and knows what it is looking for. It makes things easier for us, because then we know what we should look for,” explains Wouter Moerel.
Time and expertise are frequently what makes it possible to take advantage of interesting opportunities.
“For major co-investment opportunities, it’s often crucial that we know which LPs have the expertise and decision power for surviving a demanding process and meeting the deadlines. Having an investor like AP6 involved in this and other processes is incredibly valuable,” says Rob de Jong.
For AlpInvest, building confidence is the key to creating a long-term relationship.  That’s why AlpInvest likes it when an LP asks lots of questions.
“In my mind, an LP can never be too inquisitive or engaged.  We want to get to know our investors. That way, we are better equipped to help them in the various situations that can arise,” says Wouter Moerel.