LP Scorecard: Halifax Is Top Small Buyout Performer For LACERS

Hamilton Lane was hired in January 2005 to select new investments, monitor and provide advice for the $10.8 billion LACERS alternative portfolio. The firm manages a private equity portfolio of some 156 private equity partnerships and 84 managers ranging from 1995 to 2012 vintages. The private equity portfolio incorporates small, mid, large and mega-buyout funds, distressed debt, diversified funds of funds, growth equity, mezzanine, secondaries, special situations and venture capital funds. The state pension fund has a target private equity allocation of 12 percent and actual allocation of just under that as of June 30, 2012.

In the small buyout segment, LACERS is invested in 14 vehicles ranging from vintages 1996 to 2012. Top of this selection is the mid-market focused 2006 vintage Halifax Capital Partners II LP, which generated an IRR of 18.32 percent and multiple of 1.53x as of June 30, 2012. This was closely followed by ACON Investments’ Acon-Bastion Partners II LP 2006, which reached an IRR of 18.09 per cent and investment multiple of 1.74x. The top-quartile IRR and investment multiple for this portfolio of small buyout vehicles was 10.1 per cent and 1.6x; bottom- quartile was 7.1 percent and 1.1x and median performance was 8.3 percent and 1.3x.

Of the total Hamilton Lane-managed LACERS portfolio the top two performers for the period are both 1997 vintage venture funds: Menlo Ventures VII LP, which generated an IRR of 135.8 percent and investment multiple of 4.71x and InterWest Partners VI LP, which posted an IRR of 48.89 percent and investment multiple of 2.97x for the period. The 2001 vintage CVC European Equity Partners III LP is the top buyout performer for this portfolio, generating an IRR of 41.22 percent and an investment multiple of 2.85x. The top-quartile IRR and investment multiple for the entire portfolio for the period is 15.92 percent and 1.6x; bottom-quartile is 2.3 percent and 1.1x and median performance is 8.45 percent and 1.3x.

Scroll down to find out more about the top ten performers of the small buyout segment for LACERS.

10. Enhanced Equity Fund, L.P.

Vintage: 2006

Multiple: 1.2x

IRR: 4.78 percent

9. Alchemy Investment Plan (LACERS)

Vintage: 1999

Multiple: 1.31x

IRR: 7.13 percent

8. J.H. Whitney VI, L.P.

Vintage: 2005

Multiple: 1.32x

IRR: 7.71 percent

7. CGW Southeast Partners IV, L.P.

Vintage: 1999

Multiple: 1.57x

IRR: 8.45 percent

6. Olympus Growth Fund IV, L.P.

Vintage: 2003

Multiple: 1.45x

IRR: 8.56 percent

5. CGW Southeast Partners III, L.P.

Vintage: 1996

Multiple: 1.71x

IRR: 9.24 percent

4. Levine Leichtman Capital Partners III, L.P.

Vintage: 2003

Multiple: 1.37x

IRR: 10.45 percent

3. Pharos Capital Partners II-A, L.P.

Vintage: 2005

Multiple: 1.6x

IRR: 12.59 percent

2. Acon-Bastion Partners II, L.P. 2006

Vintage: 2006

Multiple: 1.74x

IRR: 18.09 percent

1. Halifax Capital Partners II, L.P.

Vintage: 2006

Multiple: 1.53x

IRR: 18.32 percent