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LP Scorecard: Vista, Warburg generated best cash-on-cash returns for New Jersey

Both the 2007-vintage Vista Equity Partners Fund III LP, earmarked for software deals, and the 2001-vintage Warburg Pincus Private Equity VIII LP, earmarked for both venture capital and buyout investments, generated a 1.9x multiple for the pension fund (see accompanying table). The pair narrowly edged out Onex Partners for third place. The Canadian buyout firm’s 2006-vintage, Onex Partners II LP, posted a cash-on-cash return multiple of 1.8x. GSO Capital Partners, the credit arm of The Blackstone Group, has the youngest fund in the top ten, placing fourth with its 2008-vintage fund.

There were two firms with a pair of funds situated in the top ten: Warburg Pincus with its eighth and ninth funds, and Avenue Capital Group with two special situations funds. Avenue Special Situations IV came in sixth place, yielding a 1.4x cash-on-cash multiple, while its successor, Avenue Special Situations V, rounded out the list by yielding a 1.3x multiple.

Among its 103 active funds, New Jersey’s private equity portfolio has about $12.4 billion in committed capital; of that, sponsors have drawn down $9.7 billion and returned $6.4 billion in distributions. The pension is responsible for nearly 770 thousand retirement plans for current and retired employees of New Jersey.