LP Scorecard: Energy Gives Idaho a Boost

It’s direct energy investments that are boosting The Public Employee Retirement System of Idaho’s (PERSI) private equity portfolio, according to its Private Equity Performance Summary by Investment for the period 31 March, 2012.

The 1996 vintage IDA-West Energy Fund is Idaho Retirement System’s star performer to date, generating a 57 percent IRR. An affiliate of Idaho Power Company, the direct and co-investment fund operates and has ownership interests in qualifying facilities in Idaho and California.

Idaho Retirement System’s most recent performance summary to March 31, 2012 also highlights two new commitments from the pension fund this year to US-based buyout funds Kohlberg Investors VII LP and Providence Equity Partners VII LP. Each secured a $40 million allocation from the pension fund.

Idaho Retirement System manages approximately $12.2 billion in assets, with total capital committed to private equity reaching $1.99 billion for the period to March 31, 2012. Of this, $1.62 billion has been drawn down and this has generated total distributions of $972 million. The pension fund’s private equity allocation is currently 9 percent. It does not have a strategic target for private equity, which means the allocation can fluctuate depending on the performance of other equity interests.

As of March 31, the net IRR of Idaho Retirement System’s whole private equity portfolio stood at 7.62 percent, up from 7.08 percent as of year-end. Total value of the portfolio for the period stood at $1.08 billion. This was up from $1.01 billion in December. Idaho Retirement System’s active private equity portfolio comprises 56 funds ranging from vintage 1996 to vintage 2012, and includes buyout, co-investments, directs, distressed debt, growth equity, secondaries and venture capital funds.

Veteran global buyout fund managers in Idaho Retirement System’s portfolio include names such as Apollo Global Management, The Blackstone Group, Providence Equity Partners and TPG Capital. The pension fund also has a strong European exposure with allocations to European powerhouses Advent International, Bridgepoint and CVC. Select venture fund commitments include EPIC Venture Fund IV; Frazier Technology Ventures II; Galen Partners III, IV and V; and Highway 12 Venture Fund II.

In light of the pension fund’s stellar energy investment, this week’s scorecard highlights ten of the top-performing energy/power-focused funds by IRR in the Buyouts returns database.

If you’re currently looking to place your bets on the energy sector newcomer on the block Blue Water Energy, which opened its London-based global energy private equity business last year, is in the market with its maiden fund targeting $750 million. The firm was set up by Graeme Sword, a former partner and head of oil and gas investment at 3i Group, and co-founders Jerker Johansson, former chief executive of UBS Investment Bank and Thomas Sikorski, a former managing director at First Reserve Corp.

Scroll down to find out more about ten top performing energy-focused funds:

Photo of piggy bank energy concept courtesy of Shutterstock


[slide title=”10. SCF-IV, L.P.”]

IRR: 25.55% (as of 29/02/2012)

Multiple: 3.15x

Vintage: 1998

Investor: UTIMCO

[slide title=”9. EnCap Energy Capital Fund VI, L.P.”]

IRR: 26.03% (as of 30/09/2011

Multiple: n/k

Vintage: 2006

Investor: CALSTRS

[slide title=”8. United States Power Fund, L.P.”]

IRR: 27.30% (as of 31/12/2011)

Multiple: 1.90x

Vintage: 2003

Investor: California Emerging Ventures

[slide title=”7. SCF Partners, L.P.”]

IRR: 33.71% (as of 29/02/2012)

Multiple: 3.12x

Vintage: 1989

Investor: UTIMCO

[slide title=”6. SCF-V, L.P.”]

IRR: 35.16% (as of 29/02/2012)

Multiple: 2.51x

Vintage: 2003

Investor: UTIMCO

[slide title=”5. First Reserve Fund X”]

IRR: 37.20% (as of 31/03/2012)

Multiple: 1.86x

Vintage: 2004

Investors: CalPERS , CalSTRS, Oregon Public Employees Retirement Fund, Washington State

[slide title=”4. First Reserve Fund IX”]

IRR: 48.10% (as of 31/03/2012)

Multiple: 3x

Vintage: 2001

Investors: Oregon Public Employees Retirement Fund; Washington State

[slide title=”3. EnCap Energy Capital Fund IV-B, L.P.”]     

IRR: 50.51% (as of 29/02/2012)

Multiple: 1.71x

Vintage: 2002

Investor: UTIMCO  

[slide title=”2. Carlyle/Riverstone Global Energy & Power II”]

IRR: 54.50% (as of 31/12/2011)

Multiple: 2.60x

Vintage: 2003

Investor: CalPERS

[slide title=”1. IDA-West Energy Fund”]

IRR: 57.06% (as of 31/03/2012)

Multiple: 5.13x

Vintage: 1996

Investor: PERSI