KBRA Upgrades the Rating Assigned to a Capital Call Facility to AlpInvest Co-Investment Fund IX
16 Dec 2024 | London
KBRA UK (KBRA) upgrades the rating assigned to a capital call facility in the form of a revolving credit facility (the "Facility") to the partnerships comprising AlpInvest Co-Investment Fund IX (the "Fund"). KBRA has upgraded the rating to AA- from A+. The Outlook is Stable.
Following an amendment to the Facility, the partnerships comprising the Fund have provided full cross collateralisation of the Facility. At issuance of the rating, the Facility was divided into USD Borrower Fund Entities and EUR Borrower Fund Entities, with no cross collateralisation between the USD and EUR Borrower Fund Entities. Similarly, at issuance, KBRA assessed the standalone credit quality of each group individually. Following the amendment and consolidated borrower group for the Facility, the Lenders now benefit from collateralisation from all LPs of the Fund. The upgrade and rating are supported by the quality and diversification of this consolidated qualifying Included Limited Partner (ILP) base comprised primarily of institutional investors, the financial covenants of the Facility which are unchanged since issuance, plus the experience and track record of the Manager.
The Fund is the ninth vintage fund in AlpInvest Partners B.V.’s (“AlpInvest” or the “Firm”) flagship equity co-investments strategy. As of September 2024, the Fund had received the equivalent of approximately $3.0 billion of commitments from over 200 Limited Partners (LP). The Fund structure is comprised of four main partnerships, three of which receive commitments in US Dollars ("USD") and one which may receive commitments in USD or Euros.
The Lenders have a first priority security interest to the uncalled capital commitments of the Fund, including security over the right of the GP to make capital calls. The Lenders also benefit from a first priority security over the bank accounts into which capital calls are paid. The Facility is a senior secured revolving subscription finance facilities and now comprises of a Facility A (USD) Tranche and a Facility B (USD) Tranche. As of October 2024, The total Facility size has increased to total commitments of $1.0 billion via a combination of new lenders committing to the Facility and existing lenders increasing commitments. Repayment is pro rata among the outstanding Facilities’ amounts.
Founded in 2000, AlpInvest Partners is one of the three core divisions of The Carlyle Group, specialising in global private equity investing. As of September 2024, AlpInvest manages $83.7 billion total assets under management. AlpInvest have approximately 500 active investors globally, including public pensions, insurance companies, endowments, foundations, and other corporate institutional investors .
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