LP Scorecard: Minnesota generates $1.8 bln from PE

Minnesota Board of Investments realized over $1.8 billion in distributions from April 2016 through March 2017, with the wave led by funds from Varde Partners and Merit Energy Partners.

In terms of pure distributions, no fund returned more in this period than Varde Fund X. Its $84.7 million in distributions exceeded the next highest returning fund by more than $30 million. Since inception, Varde Fund X returned $162.5 million in distributions and garnered an investment multiple of 2.8x and an IRR of 12.02 percent.

Natural Gas Partners’ Natural Resources X fund brought in the second most in distributions, returning $53.2 million in this one-year period. Since inception, it brought in a total of $88.9 million in distributions with an investment multiple of 1.1x and an IRR of 4.97 percent.

Following closely behind, CarVal Investors’ Credit Value Fund A II rounded out the top three with $52.6 million in distributions. From the fund’s commencement, it returned $53.1 million in distributions with a multiple of 1.3x and an IRR of 8.21 percent.

In terms of IRR, Merit Energy Partners’ first fund generated the highest (38.27 percent) of any fund in Minnesota’s PE portfolio. This fund has a total value of $164.6 million and an investment multiple of 1.3x.

Blackstone Capital Partners fourth fund followed with an IRR of 37.07 percent. This fund has a total value of $199.1 million and an investment multiple of 2.8x. Coming in third was TCW/Crescent Mezzanine Partners’ third fund, which earned an IRR of 35.88 percent.

All told, in the year to March 31, 2017, Minnesota Board of Investments realized $1.8 billion in distributions off $15.1 billion (only $1.5 billion drawn down) into 196 funds.

In Buyouts’ calculations, all old funds from Minnesota’s March 2016 report that were sold and do not appear in the March 2017 report were omitted. All new funds that were added in the March 2017 report, but not in the March 2016 report, were omitted.