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LP Scorecard: Top 2008 vintage funds for Indiana

At the beginning of the month Buyouts took a look at 2008 vintages in its return database, and found that measured by IRR, the performance of those domestic buyout and turnaround funds marked a boost for the industry following three successive weak vintages.

The $25 billion Indiana Public Retirement System has a 10 percent allocation to private equity and is committed to some 230 venture capital and buyout-related funds spanning vintages from 1999 to 2013. The state pension fund is committed to 38 2008 vintage funds. Compared to other vintages within its portfolio, this was the second-highest number of funds within any one vintage for its entire private equity portfolio following the 46 fund commitments in 2007.

The bottom-quartile, median and top-quartile IRRs for Indiana’s 2008 vintage funds came in at 6.3 percent, 11.0 percent and 17.6 percent. By comparison, the bottom-quartile, median and top-quartile IRRs for vintage 2008 funds in the Buyouts performance database weighed in at 6.8 percent, 10.6 percent and a slightly higher top-quartile of 19.0 percent. And the entire sample of domestic buyout and turnaround funds within the database, spanning vintage years 1981 to 2008, generated a bottom-quartile IRR of 4.6 percent, a median of 10.6 percent and a top-quartile of 18.4 percent.

Reaching the top quartile for 2008 vintage domestic buyout, turnaround and growth equity funds in the database required an IRR of 18.7 percent, Buyouts reported earlier this month. Indiana 2008 top-quartile vintages fell slightly short of this at 17.6 percent.

The star-performing vintage of Indiana’s portfolio, however, is the 2002 vintage which posted bottom-quartile, median and top-quartile IRRs of 14.7 percent, 17.5 percent and 37.2 percent. The top performer of that vintage year was OCM Opportunities Fund IVb which generated an IRR of 44.5 percent for the period.

The top performer for the pension fund overall was the 2004 vintage EnCap Energy Capital Fund V which reached an IRR of 74.98 percent for the period. The 2004 vintage year for Indiana posted bottom-quartile, median and top-quartile IRRs of 6.94 percent; 9.92 percent and 14.13 percent.

(See attached table for the top ten buyout performers by IRR from Indiana’s 2008 vintage)