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LP Scorecard: Southern Cross climbs highest for Washington’s funds due back to market

The 2010 vintage Southern Cross Latin America Private Equity Fund IV leapt 12.76 percentage points, from a negative -11.96 for the period ending March 31 2013 to a positive IRR of 0.8 percent as of March 31 2014. That fund raised some $1.68 billion and was over 50 per cent drawn down according to figures from Washington as of March 31, 2014, suggesting a successor fund may well be in the pipeline.

Buyouts identified some 31 vehicles in Washington’s private equity fund portfolio from fund managers predicted to come back to market with a fund in 2015. Washington is invested in some 285 private equity and venture capital related funds.

In second place in this scorecard comes the 2012 vintage KKR North America Fund XI, which was up 10.05 percentage points to an IRR of 14.15 percent from 4.1 percent over the same period. KKR might well be back in the market next year with KKR Special Situations Fund II as the 2013 vintage KKR Special Situations Fund was already almost 80 per cent drawn down according to figures from Maine Public Employees Retirement System as of December 31, 2013. That fund raised $2 billion.

KSL Capital Partners takes third and fourth place with the 2009 vintage KSL Capital Partners Supplemental II TE and 2011 vintage KSL Capital Partners IV. Those funds’ IRRs were up 8.63 and 7.58 percentage points, respectively. KSL Capital Partners could be back in the market next year with KSL Capital Partners IV as KSL Capital Partners III was almost 50 per cent drawn down according to figures from CPP Investment Board as of December 31, 2013.

In fifth place comes the 2009 vintage Charterhouse Capital Partners IX, which was up 6.27 percentage points to an IRR of 14.89 percent from 8.62 percent. Investors are eagerly awaiting the launch of Charterhouse Capital Partners X, which could also be on the starting blocks next year as Charterhouse Capital Partners IX was over 60 percent drawn down according to Washington State Investment Board as of March 31. That fund raised some $5.3 billion.

Washington, which oversees roughly $104.1 billion of state retirement system assets, had a 22.3 percent allocation to private equity as of June 30, according to its website. The retirement system has a 23 percent target allocation to the asset class.

Washington committed some $736 million to private equity funds managed by Bridgepoint Capital, Advent International and Roark Capital Group at its Sept. 18 meeting, Buyouts reported recently.