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LP Scorecard: GTCR grabs No. 2 spot for Massachusetts PRIM

Domestic buyout funds with vintages ranging from 1984 to 2005 account for four of the top performers in the private equity portfolio of the $49.2 billion Massachusetts Pension Reserves Investment Management Board (PRIM), according to its most recent IRR report as of December 31. The top ten also features three more buyouts funds focused on global, European and energy-related deals.

Prominent names in the portfolio featured in this top ten include GTCR, DLJ Merchant Banking Partners, Clayton, Dubilier & Rice, Thomas H. Lee Partners and Blackstone. GTCR Fund VII-A takes second place in this top ten. The 2000 vintage $2 billion domestic buyout fund posted an IRR of 82.69 percent.

European buyout-related funds feature twice in the top ten with Permira Europe 1, a 0.9 million euro ($1.2 million) 1997 vintage fund recording a 73.54 percent IRR for the period. The more recent 2005 vintage Advent International GPE V, which raised 2.5 billion euros ($3.3 billion) and encompasses both US and European buyouts comes in seventh place posting a 57.74 percent IRR.

US venture funds take two of the top three spots, with the $250 million Menlo Ventures VII 1997 fund in the top spot with a 136.03 percent IRR. Union Square Ventures’s maiden fund, which raised $125 million in 2004, takes third place posting a 77.41 percent IRR.

As of 31 July, 2012, The Massachusetts Pension Reserves Investment Management Board had $49.2 billion in assets. The fund’s private equity portfolio currently stands above its 10 percent target allocation with a 12 percent exposure. The $5.8 billion private equity portfolio comprises some 235 global limited partnerships encompassing venture capital, leveraged buyout and distressed debt. As of 31 December, 2011 the total private equity portfolio had an IRR of 13.12 percent.

Buyouts’ Greg Roth reported on Wednesday that the pension fund – at its Investment Committee Meeting on Tuesday – voted to recommend Michael Trotsky, the pension’s executive director, formally take on the additional role of chief investment officer. The committee’s recommendation is set for a final board vote on October, 2. Key positions advertised on the pension fund’s website for senior investment officers for private equity and hedge funds remain open.

To find out more about Massachusetts Pension Reserves Investment Management Board’s top ten performers (in descending order) scroll down this week’s scorecard below.

10. Commonwealth BioVentures II, L.P.
Fund Type: Venture – Domestic
Vintage: 1992
IRR: 43.37 percent
Select Investors: Massachusetts PRIM

9. First Reserve Fund IX, L.P.
Fund Type: Buyout – Energy
Vintage: 2001
IRR: 48.23 percent
Select Investors: Massachusetts PRIM, Oregon Public Employees Retirement Fund, Washington State

8. Thomas H. Lee Equity Fund, L.P.
Fund Type: Buyout – Domestic
Vintage: 1984
IRR: 54.58 percent
Select Investors: Massachusetts PRIM

7. Advent International GPE V L.P.
Fund Type:Buyout – Global
Vintage: 2005
IRR: 57.74 percent
Select Investors: CalPERS, Massachusetts PRIM

6. Clayton, Dubilier Associates II, L.P.
Fund Type: Buyout – Domestic
Vintage: 1986
IRR: 64.31 percent
Select Investors:Massachusetts PRIM

5. Permira Europe 1
Fund Type: Buyout – European
IRR: 73.54 percent
Select Investors:Massachusetts PRIM

4. DLJ Merchant Banking Partners, L.P.
Fund Type: Buyout – Domestic
IRR: 77.13 percent
Select Investors:Massachusetts PRIM

3. Union Square Ventures 2004
Fund Type:Venture – Domestic
IRR: 77.41 percent
Select Investors:Massachusetts PRIM; Oregon Public Employees Retirement Fund; UTIMCO (Active)

2. GTCR Fund VII-A, L.P.
Fund Type: Buyout – Domestic
IRR: 82.69 percent
Select Investors:Massachusetts PRIM; Kansas Public Employees Retirement System; Washington State

1. Menlo Ventures VII, L.P.
Fund Type: Venture – Domestic
IRR: 136.03 percent
Select Investors:Massachusetts PRIM; Washington State

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