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LP Scorecard: Advent International produces highest cash-on-cash return for Canadian pension

Among firms that raise $10 billion-plus-sized funds, Advent International probably gets the least amount of press and attention. Yet it has one of the most consistently strong track records out there–a fact surely not lost on the $235 billion Canada Pension Plan Investment Board.

Out of 168 active funds backed by Canada’s largest pension, the 2001-vintage Advent International GPE Fund IV is the leader in cash-on-cash return multiple, producing a 2.8x multiple (see accompanying table). Advent International’s successor fund, Fund V, also appears on the list, having generated a 2.2x cash-on-cash return multiple. Notably, Advent International GPE Fund V, a 2005 vintage fund, is the youngest fund in the top ten. Coming in second place with a 2.5x cash-on-cash return multiple is Hellman & Friedman’s Hellman & Friedman Capital Partners V. Placing third is the 2003 maiden fund of Toronto-based Onex Partners, yielding a cash-on-cash return multiple of 2.4x.

CPP Investment Board – Paul Capital Holdings, a co-investment vehicle created for the pension in conjunction withPaul Capital, has a pair of secondary funds that appear in the top ten as well, generating cash-on-cash return multiples of 2.2x and 2.1x. Aside from Advent International, it is the only other pair from the same firm in the top ten.

CPPIB’s private equity program was launched in 2001 and ranks as one of the biggest in the world. Its PE portfolio has about $46 billion in committed capital; of that, sponsors have drawn down $31 billion and returned $19 billion in distributions.