AEA Private Debt, the private credit arm of AEA Investors, announced the closing of an approximately $550 million credit continuation vehicle, led by Carlyle AlpInvest, a leading global private equity investor. The deal, which also includes additional capital for new loan origination, represents a significant milestone in AEA’s ongoing growth and innovation in the private debt market.
The continuation vehicle was established to acquire a diversified, income-generating portfolio of first-lien senior secured loans from AEA Middle Market Debt Fund III, a 2016-vintage direct lending fund. The portfolio primarily consists of loans to sponsor-backed U.S. middle-market companies. This structure provides existing investors with both a liquidity option and an opportunity to reinvest in a high-quality pool of credit assets managed by AEA’s experienced team.
Building on the longstanding relationship between Carlyle AlpInvest and AEA Private Debt, the transaction underscores Carlyle AlpInvest’s leadership in credit secondaries and highlights AEA’s strong origination and underwriting capabilities. The partnership strengthens alignment with investors while enabling AEA to continue supporting middle-market borrowers across sectors.
Support: PJT Partners served as financial advisor to AEA Private Debt, with Simpson Thacher & Bartlett acting as legal counsel for AEA, and Ropes & Gray representing Carlyle AlpInvest. Wells Fargo provided financing for the transaction.
KEY QUOTES:
“This transaction underscores our commitment to delivering strong outcomes and innovative liquidity solutions for our investors. Our partnership with 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.”
Alexandra Jung, Partner and Head of AEA Private Debt
“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.”
Mike Hacker, Partner and Global Head of Portfolio Finance, Carlyle AlpInvest
“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 & Portfolio Finance platform continues to strengthen our ability to build impactful and differentiated partnerships with credit managers like AEA Private Debt.”
Stefan Singer, Managing Director, Portfolio Finance Team, Carlyle AlpInvest
