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LP Scorecard: Francisco Partners stands out among CalSTRS managers expected back to market

Francsico Partners, The Gores Group, Thoma Bravo and Hellman & Friedman are young vintages of fund managers predicted back to market whose IRRs showed the biggest leap for the California State Teachers’ Retirement System for the year to Sept. 30, 2013.

The highest IRR climber of the selection was the 2010 vintage Francisco Partners III LP, which leapt 19.09 percentage points out of negative territory to an IRR of 7.98 percent for the period from an IRR of -11.11 in 2012. Francisco Partners III was around 50 percent drawn, according to figures from Colorado Public Employees’ Retirement Association, as of Dec. 31, 2012, which suggests the firm should be in the market with Francisco Partners IV soon.

In second place is 2012 Gores Small Capitalization Partners LP, which progressed some 15.62 percentage points to -12.16 percent from -27.78 percent. Gores Capital Partners III was over 50 percent drawn, according to figures from Oregon Public Employees Retirement Fund, as of Dec. 31, 2012, suggesting the fund manager is also on track for its next fundraising.

In third place came the 2009 Yucaipa Corporate Initiatives Fund II LP, which jumped 15.33 percentage points to -10.17 percent from -25.5 percent.

Gaining ground in seventh place is the 2009 vintage TA XI LP, up 7.49 percentage points to 14.65 percent from 7.16 percent.

In tenth place is the 2006 vintage TPG Partners V LP, which was up 4.51 percentage points into positive territory to a 1.17 percent IRR from -3.34 percent in 2012. TPG’s next fund on the cards is TPG Partners VII, which had delayed fundraising following the raising of the TPG Strategic Partnership Interim Fund, which Reuters reported would be rolled into TPG Partners VII.

In terms of highest IRR for the period, the 2002 vintage OCM Opportunities Fund IVb LP was the top performing vehicle from a fund manager coming to market this year, with an IRR of 43.92 percent to Sept. 30, 2013. This was followed by the 2005 vintage JMI Equity Fund V LP, with an IRR of 38.28 percent, and the 2001 vintage Blackstone Capital Partners IV LP in third place, with an IRR of 36.88 percent.

CalSTRS is invested in some 275 private equity and venture capital funds and allocated around $950 million into private equity investments in the fourth quarter of last year, with the $250 million pledge to The Carlyle Group’s flagship Carlyle Partners VI LP marking the largest single commitment, Buyouts reported at the end of February.