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LP Scorecard: Gains in European buyouts boost MassPRIM IRRs

  • Exponent, PAI funds top the pension’s leader board
  • MassPRIM is invested in some 40 mega buyout funds
  • Private equity allocation of 11 percent is above target

The 2008 vintage European buyout vehicle Exponent Private Equity Partners II LP made the biggest leap out of MassPRIM’s buyout portfolio, up 12.48 percentage points to an IRR of 13.01 percent in 2013 from 0.53 percent in 2012. The fund is managed by European buyout firm Exponent Private Equity which was set up by former 3i Group executives in early 2000.

In second place is another European buyout shop delivering the goods for MassPRIM. The 2008 vintage PAI Europe V was up 6.25 percentage points to an IRR of 7.81 percent in 2013 from 1.56 percent in 2012.

Kelso Investment Associates VIII LP, also a 2008 vintage, comes in third place, up 5.73 percentage points to an IRR of 6.32 percent in 2013 from 0.59 percent in 2012.

The 2006 vintage Permira Europe IV LP is another European vehicle to feature in this top ten, coming in seventh place with an IRR up 3.15 percentage points to 8.67 percent in 2013 from 5.52 percent in 2012.

Other prominent names to feature in this scorecard were TPG Capital with a vehicle in fourth place, Blackstone Group in fifth place, Hellman & Friedman Capital Partners coming in sixth, Summit Partners in eighth place, Vestar Capital Partners in ninth and Thomas H. Lee Partners in tenth position.

In total, MassPRIM is invested in some 40 mega buyout funds and has been investing in private equity since 1978.

The state pension fund recently committed $150 million to Thoma Bravo Fund XI.

MassPRIM’s private equity portfolio gained 21.1 percent in 2013, up on the two previous years’ returns of 15.8 percent in 2012 and 16.8 percent in 2011.

The public retirement system ended the year with $6.5 billion invested in the asset class. The fund’s private equity allocation totaled about 11 percent, 1 percent above its long-term target, as of Nov. 30, according to the pension system.