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AlpInvest and Lexington Partners buy $1.2bn secondary portfolio from DPL

Dutch private equity investor AlpInvest and US secondaries specialist Lexington Partners have bought a $1.2bn portfolio of private equity fund investments from US energy company DPL in one of the largest secondary transactions of the last 12 months.

The portfolio is made up of interests in 46 funds managed by 27 different managers, including KKR, Warburg Pincus, and CVC Europe. The valuation is based on the purchase price and undrawn commitments.

A string of very large secondary portfolios have made their way into the market in recent years as institutions reconsidered their exposure to the asset class. Banks and corporates, in particular, have been a rich source of deal flow, although industry participants say the volume of supply has been slowing over the last six months.

Lexington is one of only a handful of large secondary specialists equipped to undertake a transaction of this size. It is currently investing out of a $2bn fund raised in 2003.

AlpInvest is an integrated private equity investor, meaning it makes investments in primary funds, secondary transactions and co-investments. It currently has around €20bn under management.

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