The Role of Co-Investments in the APFC Portfolio

In APFC Perspectives by Juliette Alldredge

APFC has been an active co-investor, having completed over 50 different investments over the last decade. This tool enables APFC to tactically deploy capital in a more attractive investment environment to drive stronger returns and asset growth. Unlike other groups that may have a formalized program or targeted deployment rate, APFC employs an opportunistic approach where we seek out interesting and attractively priced opportunities.

While co-investment activity declined in the last several years as private markets valuations reached record levels, recent activity has increased, with four deals completed from March through August 2023 accounting for almost one-third of the capital deployed during the same period. “We saw the opportunity to invest in some very high-quality businesses at attractive prices and were able to capitalize on those opportunities,” remarked Allen Waldrop, Director of Private Equity. These recent co-investments also bring significant potential fee savings to APFC, which further contributes to growing the asset base.

“If we see compelling opportunities in the spaces we like, then we will do them, but if the market isn’t cooperating or we are not seeing interesting deals, we are fine sitting on the sidelines.”  – Allen Waldrop

During the October 30 Special Meeting of the Board of Trustees, the board approved a strategic initiative focused on outperformance in the execution of innovative private equity investment strategies through staff expertise. As part of this effort, the board also approved expanding APFC’s Private Equity team to increase our capacity to continue to execute on co-investments and to build direct investment capabilities, both of which are expected to drive significant value for the Fund.

“We appreciate the Board’s strategic support and are looking forward to enhancing our capabilities and deployment approach within the private equity program,” added Waldrop. Visit the Meeting Information Page for more information about the board meeting

APFC | Private Equity

APFC’s Private Equity portfolio was valued at $15.45 billion on September 30, 2023, representing approximately 20% of total assets. The portfolio includes a mix of fund investments, co-investments, and direct investments globally, with ownership interests in approximately 7,500 underlying companies. Learn more on the Private Equity page.

 

Allen Waldrop | Director of Private Equity InvestmentsAllen Walldrop's headshot portrait

Allen has extensive experience sourcing, screening, and executing private markets investments, as well as building and managing alternative investment portfolios on behalf of public and corporate pension plans, sovereign wealth funds, family offices, endowments, and foundations.