Research

LP Scorecard: Young vintages boost Washington’s IRRs

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Denham Commodity Partners leads gainers

Eight of ten funds have positive returns now

KSL Capital places two funds on gainers list

Energy and resources-focused global private equity firm Denham Capital Management closed its sixth fund in March 2012, raising some $3 billion. IRR figures for that vehicle were up 36.44 percentage points to -8.07 percent for the period ended Dec. 31, 2013, from -44.51 percent as of Dec. 31, 2012.

The 2011 vintage TPG Growth II comes in second place, steadily working its way out of negative IRR figures, up 28.45 percentage points to a -2.49 percent IRR in 2013 from -30.94 percent a year earlier.

In third place comes emerging markets investor Actis with another 2012 vintage. Actis Global 4 was up 26.58 percentage points to -31.91 percent in 2013 from -58.49 percent in 2012.

Another 2012 vintage to feature in this top ten comes in sixth place and is the first of Washington’s mid-market funds of that vintage year to step out of its negative IRR position. Roark Capital Partners III jumped 20.78 percentage points to an IRR of 8.92 percent in 2013 from -11.86 in 2012. That fund closed in October 2012 with $1.5 billion in commitments.

Travel and leisure specialist KSL Capital Partners features twice in this top ten with its 2011 vintage KSL Capital Partners III in seventh place and KSL Capital Partners Supplemental II TE in ninth place.

Washington is invested in some 57 mid-market funds ranging in vintage from 1994 to 2013. Washington’s total private equity portfolio includes some 282 buyout and venture capital related funds ranging in vintage from 1981 to 2014.

Looking at Washington’s mid-market funds in terms of increase in distributions, it is the older vintages that come out top. The European-based 2003 Nordic Capital V increased by some $59.2 million in distributions to $356.3 million in 2013 from $297.2 million a year earlier, and recorded an IRR of 20.89 percent for the period. That fund was followed by the 2006 vintage GTCR Fund IX, which gained some $51.1 million for the period up to a distribution figure of $129 million in 2013 from $77.9 million in 2012. And in third place comes the 2005 vintage Elevation Partners, co-founded by Bono, lead singer of Irish rock group U2. That fund made some $47 million during 2013, amassing distributions of $129.6 million in 2013, up from $82 million in 2012.

Angela Sormani is a special correspondent for Buyouts in London.