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LP Scorecard: Turnarounds Connecticut’s Best Bet

In second place with an IRR of almost half that of KPS II at 31.9 percent and an investment multiple of 2.4x comes the 2007 vintage buyout fund Vista Equity III. Vista no doubt capitalised on the success of its third fund last year closing its largest fund to date Vista Equity Partners IV on $3.5 billion.

Third place in this scorecard goes to another 2002 vintage vehicle, Wellspring III, which posted an IRR of 27.4 percent and multiple of 2.2x.

The top ten also includes a 2008 vintage mezzanine fund in fifth place. Levine Leichtman IV posted an IRR of 26.1 percent and multiple of 1.5x.

Connecticut State Employees Retirement System has committed some $7 billion to 86 private equity funds including buyout, distressed debt, growth equity, mezzanine, multi-strategy, turnaround and venture capital. The IRR of the total portfolio for the period reached  8.5 percent and multiple reached 1.4x. Median IRR and multiple for the entire portfolio was 7.2 percent and 1.2x; top quartile was 13.0 percent and 1.5x, while bottom quartile was -1.3 percent and 0.9x. 

Prominent buyout fund managers within the portfolio include The Blackstone Group; The Carlyle Group, Charterhouse, Kolhberg Kravis Roberts & Co, Lexington Partners and Thomas H. Lee Partners.

For the pension fund’s top ten performers see below.

Angela Sormani is a special correspondent for Buyouts in London.

10. Carlyle Asia I

Fund Type: Buyout

Vintage: 1998

Multiple: 2.1x

IRR 17.1 percent

 

9. Yucaipa II

Fund Type: Buyout

Vintage: 2008

Multiple: 1.5x

IRR: 19.9 percent

 

9. Wellspring II

Fund Type: Buyout

Vintage: 1998

Multiple: 1.5x

IRR: 19.9 percent

 

8. Landmark IV

Fund Type: Multi-strategy

Vintage: 2008

Multiple: 1.2x

IRR: 21 percent

 

7. Altaris II

Fund Type: Buyout

Vintage: 2008

Multiple: 1.3x

IRR: 21.2 percent

 

6. Green III

Fund Type: Buyout

Vintage: 1998

Multiple: 2.3x

IRR: 21.5 percent

 

5. Levine Leichtman IV

Fund Type: Mezzanine

Vintage: 2008

Multiple: 1.5x

IRR: 26.1 percent

 

4. Veritas I

Fund Type: Buyout

Vintage: 1997

Multiple: 2.6x

IRR: 26.9 percent

 

3. Wellspring III

Fund Type: Buyout

Vintage: 2002

Multiple: 2.2x

IRR: 27.4 percent

 

2. Vista Equity III

Fund Type: Buyout

Vintage: 2007

Multiple: 2.4x

IRR: 31.9 percent

 

1. KPS II

Fund Type: Turnaround

Vintage: 2002

Multiple: 3.5x

IRR: 63.6 percent