Chicago-based GTCR’s 2001 GTCR Fund VII came out on top with an 83.01percent IRR and a multiple of 2.8x. GTCR has been investing in private equity since 1980 and has invested over $10 billion in more than 200 companies to date. GTCR declined to comment on any of the deals from GTCR Fund VII’s portfolio.
It is followed in second place by the more mature European 1996 vintage Doughty Hanson Fund II, which posted an IRR of 48.83 percent on a multiple of 2.1x, according to the report.
All 10 of the investments in that fund have been realised and the fund dissolved. Stephen Marquadt in investor relations at Doughty Hanson states that the fund actually performed better than the Washington numbers show, generating an 84 percent gross IRR and 55 percent net.
Investments in that fund included Tag Heuer (the Swiss sports watch brand), which returned 6.1x; Winkler & Dunnebier (a German manufacturer of paper envelope machinery), which returned 5.3x; Geberit (a Swiss sanitary and plumbing products company), which returned 4.2x; and Impress Metal Packaging (a non-beverage metal packaging company), which returned 2.5x. The investments were all made between December 1995 and January 1998. A total of 504.2 million euros ($651.5 billion) was invested and the fund returned 1.34 billion euros.
Code, Hennessy & Simmons, First Reserve, Fortress and Kohlberg Kravis Roberts & Co. (twice) also feature in the top ten. So do European firms Charterhouse Capital Partners, Apax Partners and Nordic Capital. Charterhouse Capital Partners VII 2002 vintage comes in second place among the European houses, with a 39.68 percent IRR and 2x multiple, closely followed by the 2001 vintage Apax Europe V with a 36.48 percent IRR and 2.1x multiple.
Of the fund’s overall top-ten performing funds just over half are venture capital funds, with the stellar 1997 vintage Menlo Ventures VII coming out top with a 135.58 percent IRR and 4.7x multiple as of March 31, 2012.
New commitments the pension fund has made this year include $255.7 million to the Cinven Fifth Fund; $300 million to Green Equity Investors VI; $295.6 million to Apax VIII; $500 million to KKR North America Fund I and $400 million to Oaktree Opportunities Fund I.Other recent commitments include a $400 million pledge to Silver Lake Partners IV and a $258 million commitment to Triton Fund IV, continuing the fund’s ongoing support of European buyout offerings
The total value of Washington’s private equity investments stood at $46.6 billion with an IRR of 13.7 percent and investment multiple of 1.5x as of March 31, 2012. Since its October 1981 inception to March 31, 2012, Washington’s private equity portfolio has generated $14.7 billion in profits.
The assets for the public retirement plans invested by Washington are pooled into a Commingled Trust Fund to help control risk and ensure stronger performance overall. As of 30 June, 2012, the $62 billion Comingled Trust Fund, had $16 billion, or 26 percent, of its assets invested in private equity holdings. That is above the fund’s 25 percent allocation target.
Scroll down our scorecard to find out which buyout funds come out on top for Washington.
10. Code, Hennessy & Simmons II, L.P.
Washington commitment: $123.3 million
Distributions: $430.7 million
IRR: 32.59 percent
9. Nordic Capital Fund IV, L.P.
Washington commitment: $76.2 million
Distributions: $205.7 million
IRR: 33.18 percent
8. Fortress Investment Fund II, LLC
Washington commitment: $100 million
Distributions: $314.8 million
IRR: 36.1 percent
7. Apax Europe V A, L.P
Washington commitment: $140.1 million
Distributions: $281.2 million
IRR: 36.48 percent
6. KKR 1982 Fund, L.P.
Washington commitment: $129.9 million
Distributions: $393.6 million
IRR: 36.55 percent
5.Charterhouse Capital Partners VII, L.P.
Washington commitment: $141 million
Distributions: $230.4 million
IRR: 39.68 percent
4. KKR Beatrice, L.P.
Washington commitment: $75 million
Distributions: $268.3 million
IRR: 43.17 percent
3.First Reserve Fund I, L.P.
Washington commitment: $100 million
Distributions: $308 million
IRR: 48.12 percent
2.Doughty Hanson Fund II, L.P.
Washington commitment: $16.5 million
Distributions: $36.3 million
IRR: 48.83 percent
1. GTCR Fund VIIA, L.P.
Washington commitment: $31.3 million
Distributions: $57.7 million
IRR: 83.01 percent