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Fund performance: Difficult period for ROW growth funds

Growth funds serving emerging markets and parts of Europe went through a difficult period in the middle of last year, if the University of Texas Investment Management Company’s portfolio is an indication.

The majority of UTIMCO’s 12 European and ROW growth funds saw their performance slump from February to November 2014, according to a recent portfolio report. The portfolio includes several funds with a buyouts focus.

Performance overall in the portfolio is lackluster. Mid-life fund Actis Africa 3 led the portfolio with an IRR of 15.2 percent as of November. Warburg Pincus Private Equity IX from 2005 was second on the list with an IRR of 10.59 percent, followed by Gavea Investment Fund III.

No other fund had a positive double-digit IRR as of November.

One fund showing progress is Altra Private Equity Fund II from 2012, which saw its IRR rise to 5.48 percent in November from -28.72 percent in February.

Other funds saw returns retreat, including Turkish Private Equity Fund III from 2011 and Russia Partners III from 2007.

The portfolio favors larger funds, with half having attracted commitments of $900 million or more.

The accompanying table lists the 12 funds with their commitments, distributions and IRRs.