Slideshow: PERSI Commits to Five New Buyout Funds in Q3 2011

The Public Employee Retirement System of Idaho (PERSI) committed to five buyout new funds in Q3 2011, according to its alternative investment report. Net IRR of its whole private equity portfolio stood at 6.74% as of September 30 2011.

Total capital committed reached $1.95 billion. Of this, $1.54 billion has been drawn down and this has generated total distributions of $920 million. Total value of holdings as of 31 September 2011 stood at $957 million.

Of these total figures, $1.69 billion was committed from active funds; $204.5 million from the fund’s legacy portfolio and $62.8 million from its liquidated portfolio. Legacy partnerships include partnerships over 10 years old with less than $5 million in market value and which are close to liquidation. Liquidated Partnerships include FCI Enclosures Partners II, OCM/GFI Power Opportunities Fund, Saugatuck Capital Company III, and Thomas H. Lee Equity Fund IV.

The fund generated distributions of $574.8 million from its active portfolio; $277.6 million from its legacy portfolio and $67.5 million from its liquidated investments.

Prominent global private equity funds in the portfolio include offerings from Apollo, Blackstone, KKR and TPG. European funds include vehicles from Bridgepoint and CVC. And there are also a handful of venture funds such as EPIC Venture Fund IV, LLC, Frazier Technology Ventures II, L.P, Galen Partners III, IV and V, L.P and Zesiger Capital Group.

PERSI manages approximately $12.0 billion in assets, providing retirement and disability benefits to nearly 128,000 members and beneficiaries.

Scroll down to see who the newest beneficiaries (in ascending order) of Idaho funds are to date.


[slide title=”Endeavour Capital Fund VI, L.P.”]

Vintage: 2011

Strategy: Lower mid-market

Fund Size: $675 million

Predecessor: Endeavor Capital Fund V LP ($475 million)

Idaho Commitment: $25,000,000

Other Investors: J. Paul Getty Trust and Rasmuson Foundation, university endowments from MIT, University of Notre Dame, University of Washington and Whitman College. Other state funds include Oregon Public Employees’ Retirement Fund and Washington State Investment Board.

[slide title=”Kohlberg Investors VII LP”]

Vintage: 2012

Strategy: Mid-market buyouts with enterprise values between $100 million and $750 million, providing equity capital investments of $50 million to $200 million.

Fund target: $1.5 billion

Predecessor: Kohlberg Investors VI ($1.5 billion); net IRR of 16.65% according to PERSI.

Idaho Commitment: $40,000,000

Other Investors: The School Employees Retirement System of Ohio; The Teachers’ Retirement System of Louisiana.

[slide title=”TPG Growth II LP”]

Vintage: 2011

Strategy: Mid-market buyouts and growth equity investments

Fund target: $1.5 billion to $2 billion

Idaho Commitment: $30,000,000

Predecessor: TPG Star LP ($1.5 billion); Net IRR of 12.71% as of September 31 2011, according to PERSI.

Other Investors: The Washington State Investment Board

[slide title=”Providence Equity Partners VII LP”]

Vintage: 2012

Strategy: Large buyouts

Fund Target: $6 billion

Idaho Commitment: $40,000,000

Predecessor: Providence Equity Partners VI, L.P. ($12.1 billion); Net IRR of 4.44%, according to PERSI.

Other Investors: The State of Wisconsin Investment Board and the Massachusetts Pension Reserves Asset Management and the Washington State Investment Board committed up to $300 million to fund VII.

[slide title=”Blackstone Capital Partners VI, L.P.”]

Vintage: 2011

Strategy: Mega buyout fund

Fund Size: $16 billion

Predecessor: BCP V ($21.7 billion); net IRR of -1.5%, according to PERSI

Idaho Commitment: $40,000,000

Other Investors: California Public Employees’ Retirement System and Canada Pension Plan Investment Board

Deals So Far: BCP VI’s first acquisition deals include the $3 billion takeover of healthcare IT firm Emdeon and an investment of up to US$277 million in Exeter Finance, which provides financing to auto dealers.


Image credit: Idaho signpost courtesy of Shutterstock