Carlyle takes full control of Dutch fund of funds Carlyle Group has offered to buy the 40 per cent stake it did not already own in Dutch fund of funds manager AlpInvest, giving the US private equity group greater control of a large investor in many of its rivals" funds. New York-listed Carlyle, which bought 60 per cent of the Dutch investment manager in 2011, will issue 2.8m new common units - or shares - and pay €4m in cash to fund the transaction, the group said in a filing on Monday. This values the 40 per cent stake in AlpInvest at about $87.7m - and $219m for all the shares. The acquisition of a controlling interest in AlpInvest - sold by two of the Netherlands" largest pension funds - prompted concerns among other private equity managers of possible conflicts of interest. AlpInvest, which manages about €33bn of stakes in private equity funds, is a big investor in several of the funds managed by Carlyle as well as many of those managed by its main private equity competitors. At the time, David Rubenstein, Carlyle's co-founder, shrugged off those fears, pointing out that AlpInvest would be banned from investing in future Carlyle funds and from sharing any information with its new parent that is provided by the other funds it backs. AlpInvest's managers, led by chief executive Volkert Doeksen, invested their own money to take the 40 per cent stake, a move viewed as further evidence of independence. The managers had also agreed to split voting rights 50:50 with Carlyle. The governance model remains the same, though Jacques Chappuis, head of Carlyle's solutions division, is joining the AlpInvest board and the Dutch company will report to him. Mr Chappuis will oversee financial results and operations, although he will not be involved in investment decisions, according to Carlyle. We believe the transaction . . . will further align the interests of the AlpInvest management holders with ours. AlpInvest's management team will continue to exercise independent investment authority," Carlyle said in the filing. Private equity groups that have gone public, including Carlyle, KKR and Blackstone, have sought to diversify away from traditional leveraged buyout funds to augment their assets under management and generate a steadier flow of management fees, an aspect that shareholders and analysts particularly focus on. The transaction, which is expected to close around July 1, will be "immediately accretive to distributable earnings per common unit," Carlyle said. Had the deal been completed on January 1, it would have "resulted in an increase to fee-related earnings" of the group's solutions business division, of which AlpInvest is part, of about $4m for the first quarter. Carlyle now manages more than $176bn of assets across 114 funds and 76 fund of funds vehicles. New York-based Blackstone, whose private equity arm now amounts to only a quarter of its $218bn asset base, in April agreed to buy a fund management unit from Credit Suisse, adding $9bn in funds. The existing arrangements with the historical owners and management team of AlpInvest regarding the allocation of carried interest - the share of profit - will not be affected, Carlyle also said.