Carlyle has just secured US$ 20 billion for its AlpInvest secondaries unit, marking a decisive bet on a corner of private equity that is thriving despite a broader slowdown in exits. Of the total, US$ 15 billion went into the flagship secondary fund, nearly doubling the size of its predecessor launched in 2020. The scale makes AlpInvest one of the world’s largest pools of capital dedicated to buying older private equity stakes, often at discounts, from investors looking for liquidity.
The timing is significant. With IPO and M&A markets struggling, private equity groups are sitting on an estimated US$3 trillion in ageing holdings. That backlog has created a surge of demand for secondaries funds, which offer an exit route to limited partners under pressure to recycle capital. This is one of the reasons why the secondary market has more than doubled in the past five years, reaching about US$ 600 billion in assets under management (AUM) and representing around 5% of global private equity.
For Carlyle, the strategy is paying off. AlpInvest has become the firm’s most profitable business line, with distributable earnings doubling in the first half of 2025 compared with a year earlier and AUM climbing 15%. That momentum has helped the parent company’s shares rise 26% since January, outpacing rivals such as Blackstone, Apollo and KKR.
The fundraising also reflects a push under Carlyle chief executive Harvey Schwartz to streamline operations and concentrate on growth engines where the group has a competitive edge. While Carlyle has fallen behind peers in scale in recent years, AlpInvest’s ability to attract capital at a time when many institutional investors are cautious about new commitments show the appeal.
Investor appetite for the latest fund was boosted by its performance track record and the widening gap between buyers and sellers in private markets. Secondary buyers can often purchase stakes at a discount to net asset value, creating attractive return profiles if portfolio companies eventually exit successfully. That dynamic has drawn increasing interest from pension funds, insurers and sovereign wealth investors that aim to manage liquidity without assuming large losses.
The deal mix also highlights how private wealth channels are becoming more relevant for large private equity managers. Around US$ 2 billion of Carlyle’s secondaries fundraising came through vehicles designed for wealthy clients, signalling how firms are tapping retail flows to complement institutional capital. In fact, this diversification is becoming a trend as managers seek to broaden their investor base.
