DPL to Sell Private Equity Investments to Joint Venture

February 14, 2005 (PLANSPONSOR.com) - A joint venture - which includes a firm that is funded by a large number of public and corporate pension plans, endowment and foundations - has agreed to purchase most of the investment portfolio of DPL Inc.

DPL is selling $850 million worth of its portfolio – everything except public securities and cash – to joint venture AlpInvest/Lexington 2005. The portfolio being sold holds investments in 46 private equity funds worth $754 million, according to the Dayton Business Journal.

Lexington Partners, which has offices in New York Boston, Menlo Park, and London, is funded by over 100 public and corporate pension plans, financial institutions, endowments, foundations corporations and family groups,    and is one part of the joint venture. AlpInvest, which has offices in New York, Amsterdam, Antwerp and Frankfurt, is one of the largest private equity investors in the world and constitutes the other part of the venture, according to the Journal.

The portfolio being sold has a troubled past, according to the newspaper. It, and the losses from it, was the impetus for a $145.5 million lawsuit from shareholders in 2003, which was settled for $70 million.

The sale is subject to approval from the individual fund’s general partners and will be closed on a rolling basis as such approvals are attained, according to the newspaper. Proceeds will be used to repay debts and reinvest in DPLs core business, according to the company. Dayton-based DPL is a provider of electricity services in Ohio and sells electricity wholesale in the eastern US.