It has been a good year for the relatively young private equity portfolio of the New Mexico Educational Retirement Board. Performance data released at its October meeting shows that it received almost a fifth of its total distributions to date in just the first six months of 2015. From the beginning of this year through the end of June, New Mexico ERB realized $152.3 million in gains.
DRI Capital played a prominent role in the pension fund’s success. DRI LSRC II, a royalties-based mezzanine fund, produced the highest distribution percentage (distributions as a percent of contributed capital) and second highest absolute distribution amount during those six months. The 2010-vintage had a distribution percentage of 61.9 percent and returned $21.7 million in that period.
Coming in second place by distribution percentage was New York-based Leeds Equity Partners with its Fund V. The 2007 buyout fund posted a 53.3 distribution percentage. Clayton, Dubilier & Rice’s eighth flagship fund took the bronze on both distribution lists, generating a 43 percent distribution percentage and $16.5 million in absolute distributions. CD&R also had the highest investment multiple listed here, sporting an impressive 2.1x.
A BlackRock-managed co-investment vehicle led the way in total distributions during the six months, producing $25.7 million. VSS Fund Management appeared on both top-five lists with its 2008-vintage VSS Structured Capital Partners II. It placed fifth with a 36 percent distribution percentage and fourth in absolute distributions with $13.1 million in returns. It also demonstrated the highest IRR of the two top five lists with an impressive 29.6 percent.
As of June 30, New Mexico ERB’s private equity portfolio had more than $2.1 billion in committed capital across 54 active funds. Those active investments have a combined $1.3 billion drawn down and have produced $832 million in returns.
Download Table: New Mexico ERB’s Top Funds