AlpInvest’s latest fundraising demonstrates potent investor confidence amidst volatile global markets
AlpInvest Partners, the private equity arm of global investment giant Carlyle Group, has successfully raised $4.1 billion for its ninth co-investment fund, according to a statement released Tuesday. The new fund marks one of the largest co-investment capital raises of the year, signifying strong institutional appetite for private equity despite persistent macroeconomic uncertainties and market volatility.
Robust Fundraising Signals Enduring Faith in Private Equity
AlpInvest Partners, headquartered in New York and Amsterdam, secured commitments from a mix of global institutional investors, including public and private pension funds, insurance companies, and sovereign wealth funds. The newly raised fund will focus on co-investment opportunities—direct participations alongside lead private equity sponsors—aiming to deliver enhanced returns by reducing management and performance fees.
“The successful close of our ninth co-investment program reflects continued demand for diversified, risk-adjusted private markets exposure,” said Wim Borgdorff, Managing Partner at AlpInvest. According to the company, most of the capital came from returning investors, a testament to AlpInvest’s robust track record. The firm has now raised more than $14 billion for co-investment strategies since inception.
Growing Appetite for Co-Investment Strategies
Co-investments have become increasingly popular among sophisticated investors seeking access to high-quality deals while mitigating fee drag. Unlike traditional private equity fund investments, co-investors can often participate in select transactions on a no-fee or reduced-fee basis, enhancing net returns.
“Especially in uncertain markets, institutional investors value the control, transparency, and partnership they achieve through co-investing,” noted Preeti Singh, an industry analyst at PitchBook. “The scale achieved by AlpInvest is a signal that large allocators are doubling down on strategies that offer selectivity and cost efficiency.”
Market Context: Fundraising Challenges and Opportunities
The news comes at a time when many private equity managers are grappling with slower capital formation and increased scrutiny from investors amid market volatility, inflationary pressures, and concerns about economic growth. In the first quarter of 2025, global private equity fundraising fell by 17% compared to the same period last year, according to data provider Preqin. However, niche strategies—such as co-investments—are proving resilient.
Carlyle’s AlpInvest has built a reputation for identifying and executing complex transactions across North America, Europe, and Asia-Pacific. Since 2000, the co-investment team has participated in over 300 transactions, including deals in technology, healthcare, industrials, and consumer sectors.
Quotes From the Industry
Investors are seeking more direct involvement and influence over their private investments, especially as return dispersion widens across the asset class, said Jennifer Choi, CEO of the Institutional Limited Partners Association (ILPA).
AlpInvest’s achievement is notable given the current environment. It suggests trusted platforms can still attract significant capital when the value proposition is clear, observed David Fann, Vice Chairman of Aksia.
Trends and Outlook
With private equity deal-making expected to remain robust—particularly in sectors like artificial intelligence, energy transition, and healthcare—AlpInvest’s new co-investment fund is well-positioned to capitalize on emerging market opportunities. The proceeds are anticipated to be deployed over the next few years alongside top-tier private equity sponsors.
Carlyle, which manages $425 billion in total assets, continues to emphasize its commitment to alternative investing platforms amid intensifying competition and pressure on traditional investment models. Recent surveys suggest allocators are prioritizing access to differentiated, lower-fee options as they navigate headwinds facing both public and private markets.
Sources Used
- Reuters: Carlyle’s AlpInvest raises $4.1 billion for ninth co-investment fund
- Preqin research reports
- Institutional Limited Partners Association (ILPA)
- PitchBook analyst commentary
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
Alex V