Carlyle, AlpInvest Take Over Indiana Plan

  • 2006 vintage Indiana Investment Fund I
  • Also launching: Indiana Investment Fund II
  • Carlyle’s Jacques Chappuis heads up Solutions unit

The Carlyle Group and subsidiary AlpInvest Partners will now manage the seven-year-old, $155 million Indiana Investment Fund I (IIF-I)) as well as the freshly-minted Indiana Investment Fund II (IIF-II), which kicked off in March with $150 million from the Indiana Public Retirement System. Carlyle in June bought the 40 percent of AlpInvest that it didn’t already own.

Both funds aim to manage a “diversified, high-quality portfolio” of Indiana-based direct investments, co-investments and private equity funds.

The investments “must support the needs of… members” and “bolster the economic environment in which Indiana employers and Hoosier taxpayers work and live,” according to a statement from the pension fund, which manages $27 billion.

Indiana Investment Fund I is already invested in Indiana-based fund-of-funds and co-investments, with $85 million at work in five private equity funds and $70 million in 10 direct deals and co-investments.

“We believe that consolidating our Indiana-focused funds with one manager will best serve the interests of our members and better-enable us to achieve the return expectations we have established,” Steve Russo, executive director of the Indiana Public Retirement System, said in a statement.

Carlyle won the business after first talking to INPRS about launching a new Indiana-based fund back in 2006, according to a person familiar with the firm. A spokeswoman for Credit Suisse declined to comment.

Volkert Doeksen, chairman and managing partner of AlpInvest, said in a prepared statement that the firm will “harness Carlyle’s global network and direct investment expertise” and combine them with his firm’s primary and secondary funds and co-investment relationships. AlpInvest also named Curt Rossman, a principal at the firm, to work on the Indiana effort.

The funds fall under the watch of Carlyle’s Solutions unit, which is headed by Jacques Chappuis, managing director. Chappuis joined Carlyle in February from Morgan Stanley, where he served as president of Alternative Investments Partners.

Chappuis is charged with building on Carlyle’s 2011 partnership with AlpInvest to consolidate existing Carlyle products and create customized managed accounts, funds of funds, portfolio advisory services and risk management services that “facilitate third-party access to Carlyle funds.”