LP Scorecard: Washington State’s 2001 Vintage Beats 2007 So Far

Altogether the state pension fund has committed to 16 buyout-related funds of 2007 vintage and just four buyout-related vehicles of 2001 vintage. For 2007 vintages, the median multiple and IRR for the pension fund’s buyout vehicles are a rather tepid 1.3x and 8.1 percent as of Dec. 31. For the 2001 vintages, the median figures are a stellar 2.5x and 38.1 percent. Top-quartile figures for 2007 vintages are 1.4x and 14.1 percent; for 2001 they are a far higher 2.8x and 56.8 percent. Bottom quartile figures are 1.3x and 5.3 percent for 2007 funds; for 2001 funds they are 2.1x and 24.9 percent.

Top of the 2001-vintage performers for Washington is GTCR Fund VII-A LP, which recorded a multiple of 2.8x and IRR of 83.01 percent, while top of the 2007 vintages is Green Equity Investors V LP with a 1.4x multiple and 17.79 percent IRR.

Washington isn’t the only LP to see a big difference in performance between vintages 2007 and 2001.

According to research from alternative asset data provider Preqin, after six years 2001 vintage buyout funds had distributed 95 percent of paid-in capital to investors, compared to just 33 percent of paid-in capital after six years for vintage 2007 buyout funds. In a related data point Preqin finds the average holding period for private equity-backed portfolio companies sold in 2012 reached five years, up from just under four years in 2008.

All told Washington has committed to some 272 private equity funds, including buyouts, distressed debt, growth equity, mezzanine, special situations and venture capital. As of Dec. 31 the total value of Washington State’s private equity portfolio stood at $16.1 billion. Allocation to mezzanine was 0.1 percent; large/mega buyouts accounted for 56.3 percent; small/mid buyouts accounted for 16.5 percent; distressed debt for 6 percent; venture capital/growth equity for 6.9 percent; and special situations/multi strategy for 14.2 percent.

For the state board’s entire portfolio the median multiple is 1.3x and median IRR is 8.8 percent; top quartile is 1.7x and 15.4 percent; and bottom quartile is 1.1x and 2.41 percent.

For more information on Washington’s performance to December 31, 2012, click here.

Angela Sormani is a special correspondent for Buyouts in London.

Top Ten Buyout-Related Funds 2007 Vintage

10. MatlinPatterson Global Opp Partners III

Fund Type: Distressed Debt

Multiple: 1.2x

IRR: 7.72 percent

 

9. Cinven Fourth Fund

Fund Type: Corporate Finance/Buyout – Mega

Multiple: 1.3x

IRR: 8.05 percent

 

8. OCM Opportunities Fund VII LP

Fund Type: Distressed Debt

Multiple: 1.4x

IRR: 8.11 percent

 

7. Avenue Special Situations Fund V LP

Fund Type: Distressed Debt

Multiple: 1.3x

IRR: 11.29 percent

 

6. KKR Asian Fund LP

Fund Type: Corporate Finance/Buyout – Mega

Multiple: 1.4x

IRR: 13.46 percent

 

5. TPG STAR LP

Fund Type: Corporate Finance/Buyout – Mid

Multiple: 1.4x

IRR: 13.99 percent

 

4. Silver Lake Partners III LP

Fund Type: Corporate Finance/Buyout – Mega

Multiple: 1.3x

IRR: 15.63 percent

 

3. Affinity Asia Pacific Fund III LP

Fund Type: Corporate Finance/Buyout – Mid

Multiple: 1.5x

IRR: 16.54 percent

 

2. Advent Latin American Private Equity Fund IV LP

Fund Type: Corporate Finance/Buyout – Mid

Multiple: 0.16x

IRR: 17.09 percent

 

1. Green Equity Investors V LP

Fund Type: Corporate Finance Buyout – Large

Multiple: 1.4x

IRR: 17.79 percent

 

Top Four Buyout-Related Funds 2001 Vintage

 

4. Warburg Pincus Private Equity VIII LP

Fund Type: Special Situations

Multiple: 2.2x

IRR: 15.46 percent

 

3. OCM Opportunities Fund IV LP

Fund Type: Distressed Debt

Multiple: 1.6x

IRR: 28.02 percent

 

2. First Reserve Fund IX LP

Fund Type: Corporate Finance/Buyout – Mid

Multiple: 2.8x

IRR: 48.12 percent

 

1. GTCR Fund VII-A LP

Fund Type: Corporate Finance/Buyout – Mid

Multiple: 2.8x

IRR: 83.01 percent