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LP Scorecard: CalPERS’s Winners And Losers Of 2012

Technology-related buyouts, distressed deals and European buyouts are bringing in the top dollars for the $255 billion California Public Employees’ Retirement System as of Dec. 31, 2012.

The 2001 vintage T3 Partners II comes in pole position in this rundown of CalPERS’s top and bottom buyout-related vehicles, posting an IRR of 95.1 percent and multiple of 3.2x for the period. The 2002 vintage distressed fund WLR Recovery Fund II came in second place posting a 78.8 percent IRR and 2.3x multiple and the 1997 vintage European buyout fund Permira Europe I came in third place with a 74.5 percent IRR and 2.6x multiple.

Bringing up the rear in this fund selection is the 1998 vintage Argentinian-based buyout fund Exxel Capital Partners V, which posted an IRR of -35.4 percent and multiple of 0.1x. This was followed by the 2006 vintage Carlyle/Riverstone Renewable Energy Infrastructure Fund, which posted a -25.1 percent IRR and 0.1x multiple. It’s not all bad for the Carlyle/Riverstone vehicles — the 2003 vintage Carlyle/Riverstone Global Energy & Power II is the fourth top performer in this selection posting a 54.1 percent IRR and 2.7x multiple. The bottom five of this selection also includes a European mezzanine and debt fund, the 2007 vintage AP Investment Europe Ltd 1.

CalPERS is invested in some 238 buyout-related funds (not including CalPERS fund-of-funds) out of a total portfolio of 289 private equity vehicles. For a fair analysis of the top and bottom performing funds, Buyouts considered only those buyout-related funds of 2010 vintage and older for this selection.

Of the buyout-related fund selection, median IRR and multiple was 9.8 percent and 1.4x for the period, top quartile was 16.8 per cent and 1.7x and bottom quartile was 3.9 percent and 1.1x. These IRR figures are marginally higher than the median, top and bottom quartile IRRs of CalPERS’s overall private equity portfolio for the period, which were 8.8 percent and 1.3x; 16.2 percent and 1.6x, and 2.8 percent and 1.1x, respectively.

The previous quarter to Sept. 30, 2012, the median, top and bottom quartile IRRs and multiples of CalPERS’s entire private equity portfolio were slightly higher in terms of IRRs and static in terms of multiple at 9.1 percent and 1.3x; 16.7 percent and 1.6x, and 3.4 percent and 1.1x, respectively.

Since inception in 1990 to December 31, 2012, CalPERS private equity program has generated $23.1 billion in returns for CalPERS.

Angela Sormani is a special correspondent for Buyouts in London.

Top Five

5. Advent Global Private Equity IV-A

Vintage: 2002

Multiple: 3.3x

IRR: 52.1 percent

4. Carlyle/Riverstone Global Energy & Power II

Vintage: 2003

Multiple: 2.7x

IRR: 54.1 percent

3. Permira Europe I

Vintage: 1997

Multiple: 2.6x

IRR: 74.5 percent

2. WLR Recovery Fund II

Vintage: 2002

Multiple: 2.3x

IRR: 78.8 percent

1. T3 Partners II

Vintage: 2001

Multiple: 3.2x

IRR: 95.1 percent

Technology focused deals alongside the firm’s main buyout funds

Bottom Five

5. Aisling Capital III LP

Vintage: 2008

Multiple: 0.9x

IRR: -12.3 percent

4. Yucaipa Corporate Initiatives Fund II LP

Vintage: 2008

Multiple: 0.7x

IRR: -18.9 percent

3. AP Investment Europe Ltd 1

Vintage: 2007

Multiple: 0.5x

IRR: -21 percent

2. Carlyle/Riverstone Renewable Energy Infrastructure Fund

Vintage: 2006

Multiple: 0.1x

IRR: -25.1 percent

1. Exxel Capital Partners V LP 1

Vintage: 1998

Multiple: 0.1x

IRR: -35.4 percent