Research

LP Scorecard: CalPERS cashes out $14.4 bln in 2015

-
calpers
Calpers headquarters is seen in Sacramento, California, October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker (UNITED STATES BUSINESS) - RTXPWQ0

California Public Employees’ Retirement System’s private equity portfolio realized $14.4 billion in 2015, an analysis of return data shows.

That total was supercharged by Apollo Global Management, Carlyle Group and TPG Capital. The top five funds by total distributions last year came from those three buyout shops.

Apollo Investment Fund VII led by absolute distribution. The 2008-vintage fund brought in $534.7 million and an impressive 23.9 percent IRR. Its predecessor, 2006-vintage Fund VI, came in fourth by cashing out $335.2 million.

Coming in second was Carlyle Partners V, raking in $490.6 million. TPG Partners VI came in third by producing $390.3 million, while TPG V fund realized $331.6 million to round out the top five.

Distribution-percentage leaders

The leading fund by distribution percentage (cash out divided by cash in) was KPS Special Situations Fund III LP. KPS Capital Partners’ third turnaround vehicle generated an 81.2 distribution percentage in the 12-month span.

Next up was Birch Hill Equity Partners’ third flagship. The 2005 vintage had a distribution percentage of 69.4. Third was Apollo’s European Principal Finance Fund, producing a 69 percent distribution percentage.

Both top five lists were composed of 2005-2008 vintages.

All told, CalPERS’s PE portfolio has about $55.8 billion committed across 261 active funds. Those active funds combined have drawn down more than $55.3 billion and returned almost $54.3 billion in cash out as of December 31, 2015.

Action Item: Download LP Scorecard table as a spreadsheet: http://bit.ly/2bb83ZC