CPPIB Canadian general partner Q4 2008 performance numbers

The fourth quarter wasn’t stellar for Canadian GPs; neither was it all that bad, either.

This post is the latest in the ongoing series covering the Canadian general partners that have been lucky enough to receive a limited partner commitment from the CPP Investment Board (see prior post “CPPIB Canadian general partner Q3 2008 performance numbers” February 16-09). For the eighth consecutive quarter, Canada’s very own national pension fund didn’t make a single new direct formal commitment to a Canadian general partner other than Onex Corp.

The CPPIB team did commit, however, to 18 U.S. and international GPs during 2008. In total, 40 of the last 41 direct GP commitments have been outside of Canada, despite the fact that the Canadian banking system and economy are ranked #1 in the world as financial safe havens; although the US currency reigns supreme in that category.

If you are a regular visitor to the site, you’ll know that we pull the figures showing the performance results that the Canada Pension Plan Investment Board is receiving from its GP relationships (they’ll want me to remind you that’s calendar Q4, not CPPIB’s fiscal Q4).

The figures that follow cover four categories: CPPIB’s commitment, paid-in-capital (which tells you how much of the fund is invested in deals and/or drawn to pay management fees) reported value, and reported value + distributions (which tells you what the notional simple return of the fund is against the paid-in-capital figure). That figure is based in large part on what the manager believes the portfolio is worth as at December 31, 2008, subject to GAAP fair value accounting. MM means millions.

As we’ve As we’ve done in the past, I’ve added our own Fund II returns (as at Q4/08) as they get muddled when included as part of the CPPIB Legacy fund of fund program that committed $10 million in December 2004 (back when Edgestone ran the program for CPPIB) to our $83MM Wellington Financial Fund II. Fund II ceased pursuing new transactions in August 2006 with the first closing of our $150MM Fund III that month (CPPIB doesn’t have $ in our Fund III via TD’s VC fund-of-fund program):

Canadian Venture and Life Science Funds

Celtic House VP Fund II (2002 US$):
$13.5MM, $15MM (111%), $9.8MM, $20.9MM (+39%)

Celtic House VP Fund III (2005 US$):
$50MM, $27.4MM (55), $16.5MM, $16.7MM (-39%)

Edgestone Venture Fund (2000):
$50MM, $44.7MM (89.4%), $12.1MM, $58.9MM (+32%)

Edgestone Venture Fund II (2004):
$50MM, $42.1MM (84%), $33.9MM, $33.9MM (-19%)

Lumira/MDS Life Sciences Technology Fund II (2002):
$200MM, $110.1MM (55%), $53.9MM, $109MM (-1%)

Skypoint Telecom Fund II (2001 US$):
$25MM, $23.1MM (92%), $9.0MM, $12.6MM (-45%)

TD Capital Legacy VC Fund (2002):
$82MM (originally $100MM), $62.1MM (75.7%), $34.5MM, $44.2MM (-29%)

Ventures West 8 (2003):
$50MM, $39.5MM (79%), $29.7MM, $31.8MM (-19%)

Wellington Financial Fund II (12/2004):
(CPPIB participated in our $83MM Fund II via a $10MM commitment by the Legacy VC Fund)
$83MM fund size, $56.3MM (67.9%), $7.5MM, $69.6MM (+24%)

Canadian Buyout & Debt Funds

Birch Hill Equity Partners III (2005):
$85MM, $70MM (83%), $66.5MM, $70MM (+0%)

Clairvest Equity Partners I (2001):
$50MM, $46.4MM (93%), $32MM, $80.8MM (74%)

Clairvest Equity Partners III (2006):
$40MM, $17MM (42.5%), $13.9MM, $13.9MM (-18%)

Edgestone Equity Fund II (2002):
$100MM, $85.4MM (85%), $62MM, $120.4MM (+41%)

Edgestone Equity Fund III (2006):
$100MM, $59.8MM (59.8%), $35.5MM, $49.7MM (-17%)

Edgestone Mezzanine Fund II (2000):
$30MM, $29.2MM (97%), $2.4MM, $28MM (-4%)

Kensington Co-investment Fund (2002):
$40MM, $42MM (106%), $14.3MM, $58.2MM (+37%)

Onex Partners (2003 US$):
$150MM, $139.6MM (93%), $145.6MM, $310.0MM (+122%)

Onex Partners III (2008 US$):
$400MM, $3.5MM (1%), $2.5MM, $2.5MM (nmf%)

TD / CPPIB CDN Private Equity Holdings I (2006):
$400MM, $141.9MM, (35.5%), $105.8MM, $113.1MM (-20%)

TD Capital CFOF Legacy Buyout (2002):
$121MM, $108.1MM (89%), $71.6MM, $121.5MM (+12%)

Tricap Restructuring Fund (2001):
$150MM, $187MM (124.7%), $24.7MM, $248MM (+33%)

Tricap II (2006):
$300MM, $299.9MM (100%), $196.3MM, $285.2MM (-5%)

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I’ll try to tackle the non-Canadian GPs tomorrow.

MRM