LP Scorecard: Energy Gives Idaho PERS A Boost

The 1996 vintage IDA-West Energy Fund is Idaho Retirement System’s star performer to date, generating a 57 percent IRR. An affiliate of Idaho Power Company, the direct and co-investment fund operates and has ownership interests in qualifying facilities in Idaho and California.

Idaho Retirement System’s most recent performance summary to March 31, 2012 also highlights two new commitments from the pension fund this year to US-based buyout funds Kohlberg Investors VII LP and Providence Equity Partners VII LP. Each secured a $40 million allocation from the pension fund.

Idaho Retirement System manages approximately $12.2 billion in assets, with total capital committed to private equity reaching $1.99 billion for the period to March 31, 2012. Of this, $1.62 billion has been drawn down and this has generated total distributions of $972 million. The pension fund’s private equity allocation is currently 9 percent. It does not have a strategic target for private equity, which means the allocation can fluctuate depending on the performance of other equity interests.

As of March 31, the net IRR of Idaho Retirement System’s whole private equity portfolio stood at 7.62 percent, up from 7.08 percent as of year-end. Total value of the portfolio for the period stood at $1.08 billion. This was up from $1.01 billion in December. Idaho Retirement System’s active private equity portfolio comprises 56 funds ranging from vintage 1996 to vintage 2012, and includes buyout, co-investments, directs, distressed debt, growth equity, secondaries and venture capital funds.

Veteran global buyout fund managers in Idaho Retirement System’s portfolio include names such as Apollo Global Management, The Blackstone Group, Providence Equity Partners and TPG Capital. The pension fund also has a strong European exposure with allocations to European powerhouses Advent International, Bridgepoint and CVC. Select venture fund commitments include EPIC Venture Fund IV; Frazier Technology Ventures II, L.P; Galen Partners III, IV and V; and Highway 12 Venture Fund II.

In light of the pension fund’s stellar energy investment, this week’s scorecard highlights ten of the top-performing energy/power-focused funds by IRR in the Buyouts returns database.

If you’re currently looking to place your bets on the energy sector newcomer on the block Blue Water Energy, which opened its London-based global energy private equity business last year, is in the market with its maiden fund targeting $750 million. The firm was set up by Graeme Sword, a former partner and head of oil and gas investment at 3i Group, and co-founders Jerker Johansson, former chief executive of UBS Investment Bank and Thomas Sikorski, a former managing director at First Reserve Corp.

Scroll down to find out more about ten top performing energy-focused funds:

10. SCF-IV, L.P.

IRR: 25.55% (as of 29/02/2012)

Multiple: 3.15x

Vintage: 1998

Investor: UTIMCO


9. EnCap Energy Capital Fund VI, L.P.

IRR: 26.03% (as of 30/09/2011

Multiple: n/k

Vintage: 2006

Investor: CalSTRS


8. United States Power Fund, L.P.

IRR: 27.30% (as of 31/12/2011)

Multiple: 1.90x

Vintage: 2003

Investor: CalPERS


7. SCF Partners, L.P.

IRR: 33.71% (as of 29/02/2012)

Multiple: 3.12x

Vintage: 1989

Investor: UTIMCO


6. SCF-V, L.P.

IRR: 35.16% (as of 29/02/2012)

Multiple: 2.51x

Vintage: 2003

Investor: UTIMCO


5. First Reserve Fund X

IRR: 37.20% (as of 31/03/2012)

Multiple: 1.86x

Vintage: 2004

Investor: Oregon Public Employees Retirement Fund


4. First Reserve Fund IX 

IRR: 48.10% (as of 31/03/2012)

Multiple: 3x

Vintage: 2001

Investor: Washington State


3. EnCap Energy Capital Fund IV-B, L.P.

IRR: 50.51% (as of 29/02/2012)

Multiple: 1.71x

Vintage: 2002

Investor: UTIMCO


2. Carlyle/Riverstone Global Energy & Power II

IRR: 54.50% (as of 31/12/2011)

Multiple: 2.60x

Vintage: 2003

Investor: CalPERS


1. IDA-West Energy Fund

IRR: 57.06% (as of 31/03/2012)

Multiple: 5.13x

Vintage: 1996

Investor: The Public Employee Retirement System of Idaho