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LP Scorecard: Union Square, Varde, Wingate, return boatloads of capital to UTIMCO

  • Union Square, Varde, Wingate return capital to UTIMCO
  • In 9 months through February, pension received $208.9 mln
  • Wingate distribution helped by Dunn Paper deal

During a recent nine-month period, funds managed by Union Square Ventures, Varde Partners and Wingate Partners returned substantial sums to backer University of Texas Investment Management Co.

Since inception, UTIMCO contributed a total of $371.9 million to these funds and received a combined $208.9 million in distributions from May 2016 to February 2017.

Union Square Ventures, which specializes in early-stage tech-sector investments, was one of the biggest distributors of capital, with its 2008 vintage fund. The fund returned $37.8 million to UTIMCO over the period. UTIMCO has invested $23.8 million in the fund to date.

All told, since inception, the fund has returned $38.7 million for an investment multiple of 3.7x (including unrealized holdings) and a net IRR of 24.25 percent.

Also returning ample money during the period were funds managed by Varde Partners. The firm’s 10th fund brought in the second most in distributions ($55.9 million) from the UTIMCO portfolio, while its ninth fund returned the third most ($55 million).

Since inception, these funds have brought in a combined $503.6 million in distributions. Varde Fund X has generated an investment multiple of 1.8x and a net IRR of 12.06 percent, while Varde Fund IX has generated 2.1x multiple and 14.89 percent net IRR.

The fourth fund of Wingate Partners, a firm investing in middle-market companies in the industrial and distribution sectors, returned the most in distributions of any fund in UTIMCO’s portfolio. This fund returned $60.2 million to UTIMCO since May 2016 off of $48.2 million in contributions since inception. This influx in distributions stems partly from the Sept. 1 sale of Dunn Paper to fellow buyout shop Arbor Investments.

Since inception the fund has returned $89.9 million in distributions for an investment multiple of 2.5x and a net IRR of 15.2 percent.

All told, in the nine months leading through Feb. 28, UTIMCO realized $997.9 million in distributions on an initial investment of $3.1 billion in 399 funds. In the period the university committed to 20 new funds.

FinalTableUTIMCO

Action Item: Contact UTIMCO in Austin: www.utimco.org/scripts/internet/contact.asp

Dustin Johnson of the U.S. receives the Walter Hagen Trophy from Michael Dell, CEO and founder of Dell Technologies, after beating Jon Rahm of Spain in the final round of the World Golf Classic – Dell Match Play golf tournament  at Austin Country Club. Photo courtesy Erich Schlegel-USA Today Sports