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LP Scorecard: Oregon’s Top Ten Debt-Related Funds

This week, Buyouts takes a look at the top ten performing debt-related funds in its portfolio as of September 30, 2012.

The 2002 vintage distressed debt fund OCM Opportunities Fund IVb takes first place posting an IRR of 46.5 percent and 2.26x multiple. Half of the top ten were early 2000 vintage and the rest were early nineties (1991, 1993,1994) and a 2007 and 2008 vintage.

A 2001 vintage mezzanine fund, TCW Crescent Mezzanine Partners III, took second place with a 36.2 percent IRR and 2.76x multiple and another distressed debt vehicle Black Diamond Capital Management’s 2002 vintage BDCM Opportunity Fund came in third with a 22.9 percent IRR and 2.64x multiple.

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. 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 the 37 debt-related investment vehicles ranging from vintages 1991 to 2011 (IRRs for funds younger than 2010 were not disclosed) there was only one negative IRR at -2.5 percent in the whole selection—the 1994 vintage Pean Private Equity and Mezzanine Fund. The top quartile IRR and multiple for the selection was 17 percent and 1.6x; bottom quartile was 7.45 percent and 1.2x and median was 11.4 percent and 1.4x. This compares favorably to Oregon’s total private equity portfolio, which posted a top-quartile IRR and multiple of 17.9 percent and 1x respectively; bottom-quartile as 3.4 percent and 0.9x; and median as 9.6 percent and 1x for the period. Oregon’s top performer of its whole portfolio for the period was the 1996 vintage Providence Equity Partners, which posted an IRR of 78.5 percent and multiple of 3.3x.

Angela Sormani is a special correspondent for Buyouts in London.

 

10. TCW Special Credits Fund V – The Principal Fund

Vintage: 1994

Multiple: 1.74x

IRR: 14.8 percent

 

9. MatlinPatterson Global Opportunities Partners

Vintage: 2001

Multiple: 1.72x

IRR: 15.9 percent

 

8. TCW Special Credits Fund IV

Vintage: 1993

Multiple: 1.96x

IRR: 17.4 percent

 

7. OCM Opportunities Fund VIIb

Vintage: 2008

Multiple: 1.67x

IRR: 18 percent

 

6. GSO Capital Opportunities Fund I

Vintage: 2007

Multiple: 1.49x

IRR: 18.1 percent

 

5. OCM Principal Opportunities Fund II

Vintage: 2001

Multiple: 1.75x

IRR: 18.3 percent

 

4. TCW Special Credits Fund III

Vintage: 1991

Multiple: 2.07x

IRR: 21.7 percent

 

3. BDCM Opportunity Fund

Vintage: 2002

Multiple: 2.64x

IRR: 22.9 percent

 

2. TCW Crescent Mezzanine Partners III

Vintage: 2001

Multiple: 2.76x

IRR: 36.2 percent

 

1. OCM Opportunities Fund IVb

Vintage: 2002

Multiple: 2.26x

IRR: 46.5 percent