LP Scorecard: A Look At How Mega-Funds Perform For CalSTRS

This week Buyouts takes a look at the top-performing U.S. and European mega-buyout funds within the CalSTRS private equity portfolio,according to figures from Thomson Reuters, publisher of Buyouts. Altogether we looked at 27 U.S. mega-funds (defined as managed by firms with more than $15 billion under management) to which CalSTRS committed over $10 billion from 1993 to 2011 and 20 European mega-funds to which CalSTRS committed more than $6.6 billion from 1996 to 2011. The data is current through September 30.

CVC European Equity Partners III LP, which raised almost $4 billion in 2001, takes the top spot with a 40.9 per cent IRR. These performance figures should stand the firm in good stead as it is rumored to be on the fundraising trail for its sixth fund by the end of this year. The firm closed its fifth fund, CVC European Equity Partners V LP, in 2009 on around €10.8 billion ($13.8 billion). That fund was 68.34 per cent drawn down, according to CPP Investment Board, as of March 31, 2012.

Blackstone Capital Partners IV LP, a 2001 vintage, takes second place with a 37.79 percent IRR, and the 1993 vintage Blackstone Capital Partners II LP sits in fourth place with a 33.89 percent IRR.

Fund managers in the analysis included names such as Apax Partners, Apollo Global Management; Bain Capital, BC Partners, The Carlyle Group, Hellman & Friedman, Permira, Providence Equity Partners and TPG.

First Reserve Corporation, Hellman & Friedman, and TPG are the other U.S. buyout firms to feature in this top-10 list, taking fifth, sixth and eighth place respectively. Other European firms featured are Apax Partners in third place, Permira featuring twice in seventh and tenth place and BC Partners coveting the ninth spot.

CalSTRS is the second largest pension fund in the United States with around $145 billion in assets under management. The market value of its private equity portfolio for the period ended September 30 reached $21.9 billion. Its actual allocation to private equity stood at 14.1 percent, above the pension fund’s target allocation of 12 percent. Altogether CalSTRS has backed some 261 funds spanning vintages 1989 to 2012, producing a diversified portfolio of global private equity funds including buyout funds, venture funds, energy funds, mezzanine funds, credit-related funds and opportunistic investments.

For more on CalSTRS most recent private equity performance click here and to find out more about which U.S. and European buyout powerhouses are producing generous returns for CalSTRS scroll down the top ten below.

10. Permira Europe II

Vintage: 2000

CalSTRS Commitment: $310.2 million

Distributions: $572.7 million

IRR: 23.4 percent

 

9. BC Partners VII, LP

Vintage: 2000

CalSTRS Commitment: $323.2 million

Distributions: $803.5 million

IRR: 23.98 percent

 

8. TPG Partners III, LP

Vintage: 2000

CalSTRS Commitment: $300 million

Distributions: $602.4 million

IRR: 24.47 percent

 

7. Permira Europe III

Vintage: 2003

CalSTRS Commitment: $392.1 million

Distributions: $503.7 million

IRR: 27.47 percent

 

6. Hellman & Friedman Capital Partners V LP

Vintage: 2004

CalSTRS Commitment: $100 million

Distributions: $137.5 million

IRR: 28.19 percent

 

5. First Reserve Fund X, LP

Vintage: 2003

CalSTRS Commitment: $200 million

Distributions: $271.1 million

IRR: 31.57 percent

 

4. Blackstone Capital Partners II LP

Vintage: 1993

CalSTRS Commitment: $81.8 million

Distributions: $170.6 million

IRR: 33.89 percent

 

3. Apax Europe V

Vintage: 2001

CalSTRS Commitment: $115.6 million

Distributions: $230.4 million

IRR: 36.34 percent

 

2. Blackstone Capital Partners IV LP

Vintage: 2001

CalSTRS Commitment: $215 million

Distributions: $319.3 million

IRR: 37.79 percent

 

1. CVC European Equity Partners III LP

Vintage: 2001

CalSTRS Commitment: $200 million

Distributions: $482.7 million

IRR: 40.9 percent