Carlyle Group has announced a deal to acquire Dutch asset manager AlpInvest Partners, which is an investor in some Carlyle funds. The deal will likely close in March. Carlyle says the transaction will make it the largest private equity company in the world and diversify it just a bit.

AlpInvest Partners is known for managing funds provided by large local pensions, one of which is the among the largest in the world. Interestingly, AlpInvest invests in some of Carlyle's main competitors, such as Blackstone Group, Bain Capital, TPG Capital and Kohlberg Kravis Roberts & Co. That gives it the unusual distinction of being able to control funds invested with competitors.

I doubt it will scale back these investments following the deal, and it might make some private equity funds wonder if Carlyle is funneling information gleaned through AlpInvest back to the main private equity operation in the United States. They may want Carlyle to erect some firewalls or agree to honor various NDAs.

and AlpInvest are certainly sensitive to this issue. They have said AlpInvest will maintain control of investment decisions and  Carlyle will not get access to AlpInvest's records about funds or takeovers.

For more:
- here's some facts from Reuters
- here's an article from Pensions & Investments

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