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AlpInvest and LGT back Dutch bank’s PE spin-out

The private equity unit of ABN AMRO, the Netherlands' third-largest bank, have spun out in a Lazard-advised deal.

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ABN AMRO, the Netherlands’ third-largest bank, has completed the spin-out of its private equity unit with backing from a consortium led by AlpInvest Partners and LGT Capital Partners.

The Amsterdam-headquartered bank sold part of its stake in the investment funds of ABN AMRO Participaties, which has been renamed Capital A, according to a statement. ABN AMRO will be a cornerstone investor in Capital A’s debut fund.

“Putting AAP at arm’s length is in line with the bank’s strategic focus on traditional banking relationships and is in line with market practice,” the statement said. “This new structure offers more flexibility for both AAP as well as ABN AMRO going forward.”

It is undertstood that Lazard advised ABN AMRO on the process.

The consortium of buyers, of which AlpInvest was the largest, underwrote the stapled spin-out at around a 1.5:1 secondaries to primary ratio, providing fresh capital for Capital A’s debut fund, according to two sources familiar with the matter. The total size of the deal was around €250 million, the sources said.

ABN did not disclose financial details about the transaction in the statement.

Rothschild’s Five Arrows Secondary Opportunities and Bregal Investments also backed the transaction, the statement noted. Secondaries Investor reported in October that ABN AMRO was seeking buyers to back the spin-out in a deal that included stakes in 25 Dutch companies.

It is understood the deal was signed on Friday and is expected to close before the end of the year.

Capital A comprises 11 investment professionals based in Amsterdam. The firm targets control investments with equity tickets of €5 million to €50 million in the Dutch mid-market. It is led by Marc Damstra and Friso Janmaat, according to its website.

ABN AMRO has a history of secondaries-backed spin-outs. In 2007 life sciences firm Forbion Capital Partners spun out, forming a €200 million fund backed by the parent’s balance sheet and Coller Capital.

The following year a consortium including Goldman Sachs Asset Management, Canada Pension Plan Investment Board, AlpInvest Partners and Adams Street Partners backed the €600 million spin-out of the captive private equity team, which rebranded as AAC Capital, sister publication Private Equity International reported at the time.