Slideshow: Spin-off Leads the Way in Lat Am Performance

The 2007 vintage DLJ South American Partners is the top performer in this week’s LP Scorecard, which takes a look at the top-ten performing Latin American private equity vehicles in Thomson Reuters Buyouts fund returns database.

For this slideshow, peHUB takes a look at the 16 Latin America-focused private equity funds within the Buyouts return database with vintages ranging from 1996 to 2011. Altogether the return database includes over 1,500 2007 vintage and older funds from US public pension fund data, including over 500 domestic buyout funds and over 400 domestic venture capital funds. Most of the data is current as of year-end 2011.

The sixteen Latin American-focused buyout funds within the database posted a top-quartile IRR of 15.5 percent, a median IRR of 4.1 percent and bottom-quartile IRR of close to negative 17 percent.

The number one performer in the ranking, DLJ South American Partners, was an affiliate of Credit Suisse Group that has since spun out from the firm and is now known as Victoria Capital Partners. DLJ South American Partners raised $300 million in 2008 and delivered a 39.6 percent IRR and 2.4x investment multiple. Victoria Capital Partners closed its second fund Victoria South American Partners II in March, acccording to Preqin.

CalPERS is an active investor in Latin America both directly and through its captive funds-of-funds 57 Stars Emerging Markets Fund Investments and EM Alternatives. Colorado Public Employees’ Retirement Association, University of California and UTIMCO have also all committed to Latin American-focused private equity vehicles that feature in this top ten.

In second place in the slideshow is the 2003 vintage ZN Mexico II, LP which recorded an IRR of 26.9 percent and investment multiple of 3.03x.

Advent International came in third place, posting a 16 percent IRR and 1.5x investment multiple for its 2007 vintage Advent Latin America Private Equity IV-D. The global buyout firm also features in seventh place in this top ten with the 2006 vintage Advent Latin America Private Equity III, which posted a 13.7 percent IRR and 1.6x multiple.

Brazil and Mexico-focused funds take fourth and fifth place with the 2008 vintage Patria Brazilian Private Equity Fund 3 recording a 15.9 percent IRR and 11.2x multiple, and the 2005 vintage Carlyle Mexico Partners recording a 15.4 percent IRR and 1.4x multiple.

According to figures from Thomson Reuters Venture Equity Latin America 2011 Year-end Report, private equity and venture capital investment levels in Latin America in 2011 waned but fundraising and exits remained stronger than ever. Private equity and venture capital investments declined 68 percent, or by $11.7 billion in 2011. Fundraising for the region came to $13 billion last year, a 67 percent growth increase over the prior year. And exit disbursements totalled $8.3 billion, a 5 percent growth increase year-over-year.

To find out more about those delivering the top performing exits see the accompanying ranking.

Image courtesy of Shutterstock

[slideshow]

[slide title=”10. HTMF Latin America”]

Vintage: 1998

Investor: Colorado Public Employees’ Retirement Association

IRR: -7.32 (as of March 31 2011)

[slide title=”9. Westsphere South America PE Growth Fund”]

Vintage: 1996

Investor: Colorado Public Employees’ Retirement Association

IRR: -6.86 (as of Dec. 31 2011)

[slide title=”8. Latin America Capital Partners II”]

Vintage: 1996

Investor: University of California

Investment Multiple: 0.76x (as of Sept. 30 2011)

IRR: -3.7

[slide title=”7. Advent Latin America Private Equity III”]

Vintage: 2006

Investor: CalPERS

Investment Multiple: 1.6x(as of March 31 /2012)

IRR: 13.7 percent

[slide title=”6. Southern Cross Latin America PE Fund III”]

Vintage: 2007

Investor: 57 Stars EMFI

Investment Multiple: 1.4x (as of March 31 2012)

IRR: 14.1 percent

[slide title=”5. Carlyle Mexico Partners”]

Vintage: 2005

Investor: CalPERS

Investment Multiple: 1.4x (as of March 31 2012)

IRR: 15.4 percent

[slide title=”4. Patria Brazilian Private Equity Fund 3″]

Vintage: 2008

Investor: EM Alternatives

Investment Multiple: 1.2x (as of March 31 2012)

IRR: 15.9 percent

[slide title=”3. Advent Latin America Private Equity IV-D”]

Vintage: 2007

Investor: CalPERS

Investment Multiple: 1.5x (as of March 31 2012)

IRR: 16 percent

[slide title=”2. ZN Mexico II, LP”]

Vintage: 2003

Investor: UTIMCO

Investment Multiple: 3.03x (as of Feb. 29 2012)

IRR: 26.9 percent

[slide title=”1. DLJ South American Partners”]

Vintage: 2007

Investor: 57 Stars Emerging Markets Fund Investments

Investment Multiple: 2.4x (as of March 31 2012)

IRR: 39.6 percent

[/slideshow]