Global alternative asset manager The Carlyle Group today announced that the Indiana Public Retirement System (INPRS) has selected Carlyle and AlpInvest Partners to manage an existing $155 million fund, Indiana Investment Fund I (IIF-I), a 2006-vintage vehicle that from inception was managed by a third party. In December 2012, INPRS selected Carlyle and AlpInvest to deploy and manage a new $150 million investment fund, Indiana Investment Fund II (IIF-II), which will invest in a diversified, high-quality portfolio of Indiana-based direct investments, co-investments and fund commitments. Carlyle and AlpInvest now manage $305 million for INPRS’ Indiana Programs.
David M. Rubenstein, Co-CEO of The Carlyle Group, said, “We are pleased to deepen our relationship with INPRS by managing this legacy portfolio. Our mandate is to invest wisely and create value for Indiana’s public pensioners and we are grateful for this opportunity.”
Steve Russo, Executive Director, Indiana Public Retirement System, said, “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. First and foremost, these Indiana-focused investments must support the needs of INPRS’ members. Additionally, they may bolster the economic environment in which Indiana employers and Hoosier taxpayers work and live. We’re confident we can achieve our primary goal while also helping to support excellent investment opportunities in Indiana.”
Volkert Doeksen, Chairman and Managing Partner of AlpInvest, said, “This mandate is important to us and we will work to maximize the fund’s value. It has only been a few months but we are already pleased with the opportunities we are seeing for investing the fresh capital in the IIF-II fund that was awarded to Carlyle and AlpInvest in December.”
IIF-I is invested in a portfolio of Indiana-based fund-of-funds and co-investments. $85 million is deployed in five private equity funds and $70 million is in ten direct deals and co-investments. This program was created to invest in local fund managers with headquarters in Indiana, and local private businesses that were located in, had significant operations in, or were willing to relocate to the state.