Harvey Schwartz Doubles Down on Secondaries as AlpInvest Prepares Its Next Move
Three weeks after Carlyle’s first-quarter earnings call, CEO Harvey Schwartz returned to the spotlight at Bernstein’s 42nd Annual Strategic Decisions Conference. While the firm’s headline figures remained unchanged, the discussion offered something arguably more revealing: an unscripted update on Carlyle’s conviction in the secondaries market.
The message was clear. If the Q1 earnings call established AlpInvest as a cornerstone of Carlyle’s growth strategy, Schwartz’s latest remarks reinforced that view with even greater confidence. More importantly, the conference surfaced several new insights that could shape how investors think about secondaries over the next 24 months.
AlpInvest Signals a Return to the Fundraising Market
Perhaps the most significant development emerged almost casually during a discussion about Carlyle’s future fundraising cycle.
Schwartz noted that AlpInvest would be returning to market alongside Carlyle’s other flagship investment platforms. While he did not provide timing or fund details, the statement represents the clearest indication yet that a new AlpInvest fundraising effort is on the horizon.
The implications are substantial. AlpInvest currently manages approximately $107 billion in assets under management and has been growing at roughly 20% year-over-year. Any new fund launch—whether focused on secondaries, co-investments, or broader solutions strategies—would rank among the largest capital raises in the alternative assets industry.
At a time when institutional investors continue to increase allocations to secondaries strategies and wealth channels are expanding access to private markets, a new AlpInvest vehicle could become one of the most closely watched fundraises in the sector.
Carlyle Holds Its Ground on Day-One Markups
The conference also provided Schwartz with an opportunity to address one of the most debated topics in today’s secondaries market: day-one markups in GP-led transactions.
The issue has attracted increasing scrutiny from limited partners who argue that immediately increasing asset valuations upon transfer into continuation vehicles can inflate reported returns before any operational value creation occurs. Critics contend that the practice may disadvantage rolling investors and obscure underlying performance.
Asked directly about the controversy, Schwartz offered a concise but firm response.
Carlyle, he said, follows GAAP accounting standards and aims to apply valuation practices conservatively. Notably, he offered no indication that the firm intends to alter its current approach.
For market participants, the message was straightforward: Carlyle does not view the debate as a material threat to the GP-led continuation vehicle market, nor does it appear inclined to change its valuation methodology in response to growing criticism.
Software Weakness Is Creating Secondary Market Opportunity
One of the more interesting shifts from Carlyle’s Q1 narrative involved software exposure.
During the earnings call, management largely addressed software from a risk-management perspective, emphasizing that AlpInvest’s exposure remained diversified and broadly in line with market benchmarks. At Bernstein, however, Schwartz reframed the discussion entirely.
His argument was that persistent software valuation compression is becoming a significant source of secondary transaction volume.
Many private equity portfolios continue to hold software assets that cannot be exited at historical valuation levels. As a result, sponsors face longer holding periods while limited partners experience reduced liquidity. The pressure to rebalance portfolios creates demand for secondary solutions, including LP transactions, structured liquidity solutions, and continuation vehicles.
In Schwartz’s view, this environment positions AlpInvest as a capital allocation partner rather than merely a buyer of assets. As long as software exits remain constrained, the need for liquidity solutions may continue to grow.
The implication is notable: what some investors see as a headwind for private equity may actually be a tailwind for secondaries managers.
Middle Eastern Capital Remains Active Despite Regional Tensions
Another noteworthy observation came from Schwartz’s comments on fundraising conversations with Middle Eastern investors.
Despite heightened geopolitical tensions across the region, Schwartz indicated that sovereign wealth funds and institutional investors remain actively engaged in private markets allocation decisions.
He described ongoing conversations with investment partners who continue evaluating commitments and participating in fundraising discussions even amid escalating regional uncertainty.
For the secondaries market, this is an important signal. Gulf sovereign wealth funds represent some of the largest and most influential pools of capital in private markets. Their participation is often critical in large LP transactions, continuation vehicle financings, and flagship fundraises.
Market observers have speculated that regional instability could slow deployment activity. Schwartz’s firsthand observations suggest that, at least for now, allocation momentum remains intact.
The Bigger Picture
Taken together, Schwartz’s latest remarks reinforce a consistent theme: Carlyle sees the secondaries market entering a period of sustained structural growth.
A new AlpInvest fundraising cycle appears to be approaching. Software valuation pressures continue to generate liquidity needs across private equity portfolios. Major institutional investors remain engaged despite geopolitical uncertainty. And Carlyle shows no signs of retreating from industry debates surrounding GP-led transactions and valuation practices.
Three weeks after emphasizing AlpInvest’s strategic importance during earnings season, Schwartz has become even more explicit about the opportunity ahead.
For one of the industry’s largest secondaries platforms, the outlook remains decidedly bullish—and Carlyle appears intent on expanding its role at the center of that growth.
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