Carlyle’s AlpInvest Partners has completed a $1.25bn securitisation of private equity fund stakes, marking its third collateralised fund obligation (CFO) deal and underscoring the growing institutional appetite for structured private markets products, according to sources cited by Bloomberg.

The transaction bundled portions of four Carlyle-managed funds with a collection of smaller stakes in other managers’ buyout vehicles, creating a diversified collateral pool.

Nearly all of the equity tranche, the first to absorb potential losses, was sold to third-party investors, including insurance companies and family offices. Evercore acted as lead adviser on the deal, with TCG Securities and Wells Fargo also participating.

The CFO market is increasingly attractive for large private equity managers seeking to free up capital or raise fresh commitments for underlying funds at lower borrowing costs. Insurance companies, in particular, have become eager buyers of such investment-grade alternative assets.

This latest transaction follows AlpInvest’s $1bn CFO completed last October, reinforcing Carlyle’s position as one of the most active players in this emerging segment of private markets financing.

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