Fittingly, the majority of University of Texas Investment Management Company‘s best-performing funds are managed by firms based in Texas.
The top four performing funds by cash-on-cash return multiple (distributions divided by contributed capital) are all based in the Lone Star State. Dallas-based Wingate Partners‘ maiden and third funds led the way. The 1987-vintage Wingate Partners LP generated a cash-on-cash return multiple of 6.1x as of August 31, while Wingate Partners’s Fund III produced a 3.3x multiple.
Those were followed by two of Houston-based SCF Partners‘ funds. SCF IV produced a 3.2x multiple, while the firm’s inaugural fund produced a 3.1x multiple.
Ranked by IRRs, which takes into account both realized and unrealized deals, the top five funds exhibit more geographic diversification. The Cortec Group‘s vintage-2012 Parallel Fund V came in first place, generating a 97.4 percent IRR. In second place was Singapore-based Everstone Capital Partners and its co-investment fund’s 72.7 percent IRR.
Los Angeles’s Oaktree Capital Management took the bronze with its OCM/GFI Power Opportunities Fund II, which generated a 58.3 percent IRR. A resident Texan firm did make an appearance on this list. EnCap Investments‘s 2008-vintage Energy Capital Fund IV-B produced an IRR percentage of 50.5 percent.
UTIMCO has 341 active funds in its private equity portfolio. According to its latest data released on August 31, 2015, UTIMCO’s active investments combine for $11.8 billion in capital drawn down and about $9.3 billion in distributions.
See the accompanying table for both top-five lists.
Download table: UTIMCO’s Top Performing Funds