Carlyle Gets First Crack at Panama’s SWF Private Equity Allocation

Posted on 09/29/2020

Fondo de Ahorro de Panamá (FAP) is moving forward on its inaugural move into private equity. Fondo de Ahorro de Panamá started the implementation of a Private Equity portfolio as part of its Strategic Portfolio diversification process. After a selection process, FAP’s Board of Directors went with the The Carlyle Group/AlpInvest Partners – based in Washington D.C. AlpInvest will be responsible for the structuring and management of this new asset class, which will be focused on the Secondary Funds segment of Private Equity.

According to the press release, “The implementation of this Private Equity portfolio is part of the Fund’s 2020/2021 Annual Investment Plan, which establishes a strategic allocation in Alternative Investments, such as is Private Equity, of up to 5% of the Strategic Portfolio of the Fund. The execution of this investment involves committing funds gradually to this Private Equity portfolio for 4 to 5 years. The total term of this investment, including the expected cash flows from this Private Equity portfolio, will be approximately 10 years and subject to a one (1) of extension.

The selection of AlpInvest was made in strict accordance with the Fund’s competitive guidelines and processes, and executed by an independent Evaluation Commission, which was composed of Panamanian financial and asset management experts. The Evaluation Commission focused on the following technical pillars: 1) the issuer’s credit rating; 2) proven experience in the Private Equity industry; 3) experience in Secondary Private Equity Funds; 4) experience with institutional clients such as, for example, Sovereign Wealth Funds, Endowment Funds and Pension Funds; and 5) assets under management.”

AlpInvest Partners is a subsidiary company of The Carlyle Group.

Keywords: Fondo de Ahorro de Panama.

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