AEA Private Debt, AEA Investors’ private credit platform, and Carlyle AlpInvest, a global private equity investor, closed an approximately $550 million credit continuation vehicle. The transaction was led by Carlyle AlpInvest, which is also providing additional capital to support new loans originated by AEA Private Debt.
The continuation vehicle was established to acquire a diversified, income-generating portfolio of first-lien senior secured loans from AEA Private Debt’s 2016 vintage direct lending fund — AEA Middle Market Debt Fund III — primarily consisting of loans to sponsor-backed U.S. middle market companies. Further enhancing long-term alignment between AEA Private Debt and its LPs, the vehicle provided existing investors with an attractive liquidity option or the opportunity to reinvest in a high-quality pool of private credit assets that will continue to be managed by a proven, deeply experienced team.
“This transaction underscores our commitment to delivering strong outcomes and innovative liquidity solutions for our investors,” Alexandra Jung, partner and head of AEA Private Debt, said. “Our partnership with Carlyle AlpInvest is a testament to our cycle-tested approach and reflects the strategic growth of AEA’s private debt business. With this continuation fund, we are further bolstering our ability to support leading middle market companies and sponsors while expanding the reach of the AEA Private Debt platform for the long term.”
Mike Hacker, partner and global head of portfolio finance at Carlyle AlpInvest, said, “This transaction reflects the strength of AEA Private Debt’s portfolio and their partnerships with many of the best private equity sponsors. With significant overlap between AEA Private Debt’s relationships and Carlyle AlpInvest’s long history of investing alongside leading sponsors, this transaction highlights the strong alignment between our organizations. We are proud to establish this partnership with AEA and support the continued growth of their private debt platform.”
Stefan Singer, managing director on Carlyle AlpInvest’s portfolio finance team, said, “Carlyle AlpInvest has a long history of delivering innovative and LP-friendly solutions to GPs across private equity and private credit. The growth of our secondaries and portfolio finance platform continues to strengthen our ability to build impactful and differentiated partnerships with credit managers like AEA Private Debt.”
PJT Partners served as financial adviser on the transaction. Simpson Thacher & Bartlett acted as legal counsel for AEA Private Debt. Ropes & Gray acted as legal counsel for Carlyle AlpInvest. Wells Fargo provided certain financing for the transaction.
