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LP Scorecard: Oregon’s Top Five and Bottom Five KKR Bets

Altogether, Oregon has committed to some 265 global and country-focused private equity funds ranging in vintage from 1981 to 2012 and including buyout, funds of funds, secondaries, special situations and venture capital offerings. Prominent names on the buyout side include Advent International, Apax Partners, Apollo, Blackstone, Cinven, CVC Capital Partners, Doughty Hanson, Hicks, Muse, Tate & Furst, Providence Equity Partners and TPG, among others. The state pension’s total commitments to private equity reached $31.1 billion as of September 30. Total value of private equity assets reached $14.9 billion for the period, with a total IRR of 15.8 percent and multiple of 1.53x.

Of Oregon’s 18 investments in KKR vehicles only one has a negative IRR, at -2.3 percent, representing a 0.96x multiple. This comes from its third and youngest European vehicle, the 2008 vintage KKR European Fund III, and so there is time for a recovery yet. KKR’s second European offering, KKR European Fund II, takes second place in the bottom-five-performing KKR funds, posting an IRR of 2.2 percent and multiple of 1.12x. KKR’s first European offering, with a 1999 vintage, KKR European Fund, takes eighth place of all Oregon’s commitments to KKR, with a 19.8 percent IRR and 2.06x multiple.

The top-quartile IRR and multiple for Oregon’s KKR commitments is 21.8 percent and 3.3x, respectively; bottom quartile is 13.2 percent and 1.5x; median is 16.6 percent and 1.8x.

Of Oregon’s total private equity portfolio the top-quartile IRR and multiple is 17.9 percent and 1x respectively; bottom-quartile is 3.4 percent and 0.9x; and median is 9.6 percent and 1x.

KKR 1982 Fund comes in ninth place in Oregon’s overall private equity rankings for the period.

Angela Sormani is a special correspondent for Buyouts in London.

Top five KKR funds

5. KKR European Fund

Vintage: 1999

Multiple: 2.29x

IRR: 19.8 percent

 

4. KKR 1980 Related Fund

Vintage: 1980

Multiple: 3.44x

IRR: 22.5 percent

 

3. KKR 1986 Fund

Vintage: 1986

Multiple: 4.55x

IRR: 26.3 percent

 

2. KKR 1984 Fund

Vintage: 1984

Multiple: 4.31x

IRR: 28.6 percent

 

1. KKR 1982 Fund

Vintage: 1982

Multiple: 3.3x

IRR: 39.7 percent

 

Bottom five KKR funds

5. KKR Asian Fund

Vintage: 2007

Multiple: 1.42x

IRR: 13.2 percent

 

4. KKR 1987 Fund

Vintage: 1987

Multiple: 2.07x

IRR: 8.8 percent

 

3. KKR 2006 Fund

Vintage: 2006

Multiple: 1.32x

IRR: 7 percent

 

2. KKR European Fund II

Vintage: 2005

Multiple: 1.12x

IRR: 2.2 percent

 

1. KKR European Fund III

Vintage: 2008

Multiple: 0.96x

IRR: -2.3 percent