LP Scorecard: 1994 CHS Fund A Top Small Buyout Vehicle

Washington has committed to 19 vehicles that it categorizes as small buyout funds, with vintages ranging from 1984 to 2011. Top of the small buyouts performers for Washington is the 1994 vintage Code, Hennessy & Simmons II LP, which posts a 32.59 percent IRR and 3.5x multiple. This is followed by the younger 2008 Evergreen Pacific Partners II LP, posting a 32.53 percent IRR and 0.9x multiple. In third place is the 1998 Nordic Capital Fund III LP, posting a 31.3 percent IRR and 3.6x multiple.

The state pension fund’s bottom three performers according to its most recent performance data as of September 30, 2012, are the 1995 vintage TSG Capital Fund II LP in third place posting a -8.54 percent IRR and 0.7x multiple. The youthful 2011 vintage Endeavour Capital Fund VI LP comes in second place from the bottom with a – 11.26 percent IRR and 0.9x multiple and TSG Capital features again in last place with its 1998 vintage TSG Capital Fund III LP, posting a -13.52 percent IRR and 0.6x multiple.

Top quartile IRR and multiple for Washington’s small buyout category was 19.67 per cent and 2.3x for the period. Bottom quartile was 4.33 percent and 1.1x and median was 10.68 percent and 1.1x. This compared favorably with the entire portfolio’s top quartile IRR and multiple which was 15.57 percent and 1.7x for the period; bottom quartile IRR and multiple at 1.91 percent and 1.1x, and median at 7.72 percent and 1.3x.

Washington State is invested in some 270 private equity funds ranging from 1981 vintage to present year, including buyouts, distressed debt, growth equity, mezzanine, special situations and venture capital. Top performers by IRR for the entire portfolio for the period include the 1997 Menlo Ventures VII LP in the pole position, recording an IRR of 135.58 percent and multiple of 4.7x. This is followed by the lucrative GTCR Fund VIIA LP, which posted an IRR of 83.01 percent and multiple of 2.8x for the period.

As of December 31, 2012, the total value of Washington State’s private equity portfolio stood at $16.1 billion.

For more information on Washington’s performance to September 30, 2012, click here.

Angela Sormani is a special correspondent for Buyouts in London.

Top Five

5. Astorg II LP

Vintage: 1999

Multiple: 3.1x

IRR: 23.75 percent

4. Endeavour Capital Fund IV LP

Vintage: 2004

Multiple: 2.9x

IRR: 24.2 percent

3. Nordic Capital Fund III LP

Vintage: 1998

Multiple: 3.6x

IRR: 31.3 percent

2. Evergreen Pacific Partners II LP

Vintage: 2008

Multiple: 1.6x

IRR: 32.53 percent

1. Code, Hennessy & Simmons II LP

Vintage: 1994

Multiple: 3.5x

IRR: 32.59 percent


Bottom five

5. Endeavour Capital Fund V LP

Vintage: 2008

Multiple: 1.1x

IRR: 3.13 percent

4. Banc Fund VII LP

Vintage: 2005

Multiple: 0.7x

IRR: -7.45 percent

3. TSG Capital Fund II LP

Vintage: 1995

Multiple: 0.7x

IRR: -8.54 percent

2. Endeavour Capital Fund VI LP

Vintage: 2011

Multiple: 0.9x

IRR: -11.26 percent

1. TSG Capital Fund III LP

Vintage: 1998

Multiple: 0.6x

IRR: -13.52 percent