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Illinois will invest $220 million in 15 to 20 of the state’s emerging tech companies over the next three years. State Treasurer Michael Frerichs said in late January that the Illinois Growth and Innovation Fund would focus on startups within the boundaries of the Prairie State. Frerichs, who most recently was State Senator for eight […]
HarbourVest buys emerging manager platform from BofA Will continue the platform’s long-time focus Six-person investment team joins HarbourVest Emerging managers have yet another name to consider when hitting the fundraising trail: HarbourVest Partners. HarbourVest just acquired BAML Capital Access Funds, a fund-of-funds platform that commits to managers of first, second or third funds; firms run by women and […]
Blackstone, KKR, Carlyle, Apollo eye dislocation in lending markets Energy companies with heavy leverage not faring well Firms hold ample dry powder Executives at the mightiest private equity firms admitted some flummox over choppy credit and energy markets of late, but Apollo Global Management, Blackstone Group, Carlyle Group and Kohlberg Kravis Roberts & Co emphasized they […]
The pre-vintage 2011 private equity portfolio of Connecticut Retirement Plans and Trust Funds, consisting of some 77 active funds, had generated a median IRR of 10.0 percent as of year-end. As shown in the accompanying table the top five by IRR are almost exclusively buyout funds, while the bottom five includes more of a mix of fund strategies, including both buyout and venture capital.
In the latest performance summary from the California Public Employees’ Retirement System, we get an inside look at the performance of its investment pools by strategy. The results show private equity with comparable returns to other asset classes in the near term, but superior returns starting in the 5-year window, 10-year and 20-year windows.
In the private equity investing world, the major measuring stick of success remains the IRR that a fund generates. Buyouts this year compiled performance data from over 30 limited partners and looked at the IRRs generated by members of the big-name fund families. While funds managed by Thomas H. Lee produced the highest top-quartile IRR of 37.1 percent, those managed by Hellman & Friedman displayed the strongest IRRs overall. Its bottom quartile IRR of 22.5 percent bested almost all the other fund families’ median IRRs.
U.S.-based buyout and mezzanine fundraising had another vigorous two weeks. Since Buyouts last went to press, the 2015 total grew by nearly $5 billion and the 2015 total is now over $154 billion, some $10 billion more than at this time in 2014.
Commonfund Capital, a manager of funds of funds on behalf of endowments, foundations and other big investors since 1988, has been an influential limited partner, with more than $14.6 billion in private capital under management. Buyouts for the first time has found a cache of performance data for the firm, and the early results on several of their vintage-2007 and younger funds are mixed.
U.S.-based buyout and mezzanine fundraising ramped back up since the last issue of Buyouts. The year-to-date total grew by about $6 billion since we last went to press, and it now stands at $149.3 billion. The yearly aggregate is a full $13 billion ahead of where it was at this time in 2014.
The New Mexico Educational Retirement Board led the way in median IRR in our latest analysis of the Buyouts returns database, including buyout, venture capital and related funds, with most returns current as of year-end 2014. New Mexico’s 15.29 percent median IRR is more than 3 percentage points above the next investor on this list, Indiana Public Retirement System. In third place, with an 11.86 percent median IRR, is Massachusetts Pension Reserves Investment Management. All told Buyouts keeps tabs on the performance of 35 limited partners.