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
IRR: 14.8 percent
9. MatlinPatterson Global Opportunities Partners
IRR: 15.9 percent
8. TCW Special Credits Fund IV
IRR: 17.4 percent
7. OCM Opportunities Fund VIIb
IRR: 18 percent
6. GSO Capital Opportunities Fund I
IRR: 18.1 percent
5. OCM Principal Opportunities Fund II
IRR: 18.3 percent
4. TCW Special Credits Fund III
IRR: 21.7 percent
3. BDCM Opportunity Fund
IRR: 22.9 percent
2. TCW Crescent Mezzanine Partners III
IRR: 36.2 percent
1. OCM Opportunities Fund IVb
IRR: 46.5 percent