Altogether, Oregon has committed to some 265 global and country-focused private equity funds ranging in vintage from 1981 to 2012 and including buyout, funds of funds, secondaries, special situations and venture capital offerings. Prominent names on the buyout side include Advent International, Apax Partners, Apollo, Blackstone, Cinven, CVC Capital Partners, Doughty Hanson, Hicks, Muse, Tate & Furst, Providence Equity Partners and TPG, among others. The state pension’s total commitments to private equity reached $31.1 billion as of September 30. Total value of private equity assets reached $14.9 billion for the period, with a total IRR of 15.8 percent and multiple of 1.53x.
Of Oregon’s 18 investments in KKR vehicles only one has a negative IRR, at -2.3 percent, representing a 0.96x multiple. This comes from its third and youngest European vehicle, the 2008 vintage KKR European Fund III, and so there is time for a recovery yet. KKR’s second European offering, KKR European Fund II, takes second place in the bottom-five-performing KKR funds, posting an IRR of 2.2 percent and multiple of 1.12x. KKR’s first European offering, with a 1999 vintage, KKR European Fund, takes eighth place of all Oregon’s commitments to KKR, with a 19.8 percent IRR and 2.06x multiple.
The top-quartile IRR and multiple for Oregon’s KKR commitments is 21.8 percent and 3.3x, respectively; bottom quartile is 13.2 percent and 1.5x; median is 16.6 percent and 1.8x.
Of Oregon’s total private equity portfolio the top-quartile IRR and multiple is 17.9 percent and 1x respectively; bottom-quartile is 3.4 percent and 0.9x; and median is 9.6 percent and 1x.
KKR 1982 Fund comes in ninth place in Oregon’s overall private equity rankings for the period.
Angela Sormani is a special correspondent for Buyouts in London.
Top five KKR funds
5. KKR European Fund
Vintage: 1999
Multiple: 2.29x
IRR: 19.8 percent
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4. KKR 1980 Related Fund
Vintage: 1980
Multiple: 3.44x
IRR: 22.5 percent
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3. KKR 1986 Fund
Vintage: 1986
Multiple: 4.55x
IRR: 26.3 percent
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2. KKR 1984 Fund
Vintage: 1984
Multiple: 4.31x
IRR: 28.6 percent
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1. KKR 1982 Fund
Vintage: 1982
Multiple: 3.3x
IRR: 39.7 percent
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Bottom five KKR funds
5. KKR Asian Fund
Vintage: 2007
Multiple: 1.42x
IRR: 13.2 percent
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4. KKR 1987 Fund
Vintage: 1987
Multiple: 2.07x
IRR: 8.8 percent
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3. KKR 2006 Fund
Vintage: 2006
Multiple: 1.32x
IRR: 7 percent
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2. KKR European Fund II
Vintage: 2005
Multiple: 1.12x
IRR: 2.2 percent
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1. KKR European Fund III
Vintage: 2008
Multiple: 0.96x
IRR: -2.3 percent