Carlyle Investor Day Presentation Deck
Endnotes & Additional Disclosures (Cont.)
Certain client accounts investing in AlpInvest Secondaries Program (ASP) VI also make strategic primary fund commitments, which investment are included in AlpInvest's primary fund investments track record and are not shown in any Secondaries-only performance. None of ASP I-V
included primary fund investments as part of its strategy. As a result, there can be no assurance that the returns of ASP VII will be comparable to those of prior Secondaries Programs.
Except as otherwise noted, information herein regarding AlpInvest's Co-Investment Program (ACP) strategy is limited to its historical Co-Investment Programs which co-invest in private equity transactions sourced by AlpInvest from its proprietary relationships with private equity
managers (or GPs). AlpInvest also makes Co-Investments for a number of separate account mandates that are sourced from such separate account investor's own proprietary private equity investment portfolio and GP relationships. The activity of these mandates is not reflected
in the discussion of, or any other information in respect of, AlpInvest's Co-Investment strategy (nor is it reflected in any Program). While the investment strategy of ACP VIII is generally expected to be consistent with the strategies of Programs IV-VII, ACP VIII strategy will differ from
those Programs in that ACP VIII will be permitted to invest up to 10% of aggregate commitments in direct or indirect investments (including primary fund investments) that AlpInvest believes can offer ACP VIII a strategic benefit. None of ACP I-VII included tactical investments as part
of its strategy. As a result, there can be no assurance that the returns of ACP VIII will be comparable to those of prior Co-Investment Programs.
The gross annualized internal rate of return (IRR), distributions to capital invested (DPI) and multiple of invested capital (MOIC) provided herein are calculated based on actual investment cash flows up to and including the relevant reporting date and the fair market value (FMV) of
the relevant investment as of the relevant reporting date. Gross IRRS and multiples of capital invested do not reflect management fees or performance fees (carried interest) charged by Alpinvest or any other expenses that are borne by AlpInvest's investors, which will reduce
returns and in the aggregate are expected to be substantial. For a description of management fees and carried interest, please see Part II of Form ADV maintained by AlpInvest's registered investment advisor, AlpInvest Partners B.V. AlpInvest's gross returns and multiples of capital
always reflect the impact of management fees, carried interest and other expenses charged at the underlying portfolio investment level by third-party managers that are indirectly borne by AlpInvest's investors. Performance information shown herein is not calculated in
accordance with Global Investment Performance Standards (GIPS). Performance information is since inception of the applicable investment strategy or the inception of a specified Fund or Program (as the case may be), unless otherwise noted.
The FMVS of primary fund investments and secondaries investments are based on the latest available valuations of the underlying limited partnership interests as provided by their GPs. The FMVs for co-investments (and non-fund secondaries investments) are based on AlpInvest's
internal valuations. To eliminate the effect of currency rate changes, all non-USD cash flows and fair market values have been converted to USD using the FX rate as of December 31, 2005 (e.g., EUR/USD FX rate is 1.1795), except as otherwise specifically noted.
With respect to Secondary investments made by Programs I-VI, net annualized IRR, DPI and MOIC are based on the gross calculation and are net of assumed AlpInvest management fees equal to 1% (for the first four years on capital commitments, and thereafter 0.75% on net asset
value of the investments) and assumed 10% carried interest payment to AlpInvest after achieving an 8% preferred hurdle rate, which reflect the fee and carry terms for ASF V and ASF VI. The fee and carry terms for Programs I-IV were typically lower than these assumed. As no fees
or carried interest were charged with respect to the Primary Investments made by ASP VI, no fees and carry on Primary Investments were assumed for the purposes of these return calculations. Investors in ASF VII will bear carried interest at a higher rate than investors in Programs
I-VI. As a result, investors in ASF VII will receive lower net returns than investors in Programs I-VI even if ASF VII's investments perform similarly.
With respect to co-investment, net annualized IRR, DPI and MOIC are based on the gross calculation and are net of assumed AlpInvest management fees equal to 1.00% (for the first four years on capital commitments, and thereafter on net invested capital) and assumed 10%
carried interest payment to AlpInvest after achieving an 8% preferred hurdle rate, which reflect the fee and carry terms for ACF VIII. Investors in ACF VIII will bear carried interest at a higher rate than investors in ACP I-VII. As a result, investors in ACF VIII will receive lower net
returns than investors in ACP I-VII, even if its investments perform similarly. Other expenses and costs incurred by AlpInvest-managed funds and accounts that are not otherwise capitalized into the cost of an investment (e.g., audit expenses, reporting expenses, broken-deal
expenses, etc.) are not reflected in net Program performance information because such other expenses and costs have historically been deemed to be immaterial, and the application of historical expenses do not result in a material variation of return data shown. ACF VII expenses
may be substantial and will reduce returns to investors.
Performance information shown herein does not represent the performance of any particular Fund or investor. Such performance information may be based on investment activity that is not in the portfolio of a particular client or investor due to differing investment period
horizons, investment objectives or opt-out elections. Net performance shown herein does not take into account certain taxes borne or deemed to be borne by investors (such as, for example, taxes resulting from the investors' domicile). Differences in timing of an investor's
commitment to a fund, separate account or investment strategy (as the case may be), and the economic and other terms applicable to certain investors, may increase or decrease the net performance information realized by such investors and, accordingly, the actual net
performance information of a particular investor may differ from the net performance information indicated herein.
The actual realized returns on unrealized investments will depend on, among other factors, future operating results of the underlying investments, the value of the underlying assets and market conditions at the time of disposition and/or distribution, any related transaction costs
and the timing and manner of sale, all of which may differ from the assumptions on which the valuations used in the prior performance data contained herein are based. In considering the past, targeted or projected performance and other financial information contained herein,
the prospective investors should bear in mind that past, targeted or projected performance is not necessarily indicative of future results and there can be no assurance that targeted or projected returns will be achieved, that any investment or investment portfolio will achieve
comparable results or that the returns generated any investment or investment portfolio will equal or exceed those of other investment activities of AlpInvest.
Information concerning investments held in any underlying fund or the investments made under the management of an underlying manager, including performance information, is based in whole or in part on information from the relevant general partner/manager and may contain
figures and estimates (including valuations) by them which, if subsequently revised by them, may change the returns or other information contained herein for the applicable period. The use of methodologies other than those used by AlpInvest herein may result in different and
possibly lower returns or performance. The current unrealized or projected values which form the basis of any internal rates of return or other performance metrics may not be realized in the future, which would materially and adversely affect actual rates of return/metrics. Actual
inception dates and cash flows are accounted for in all composite calculations except, as otherwise provided.
Performance information reported by Carlyle with respect to AlpInvest in its Form IOK or Form IOQ (or any other publication) is based on the latest available valuations of the underlying limited partnership interests (in most cases, as of the end of the fiscal quarter prior to the
relevant reporting date) as provided by their sponsors as of the reporting date, plus the net cash flow since the latest valuation, up to and including the relevant reporting date. Further, performance information with respect to Alpinvest that is reported by Carlyle is based on
actual management fee and performance fee rates after achieving the actual preferred return hurdle rate, and all cash flows and FMVs have been converted from local currency to euro using FX rates as of the relevant reporting date.
INVESTOR DAY 2021
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