CPPIB Canadian general partner Q2 2008 performance numbers

This post is the latest in the series covering the Canadian general partners that have been lucky enough to receive a limited partner commitment from the CPP Investment Board. For the sixth 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 twelve U.S. and international GPs during the first half of 2008 (ahead of the four per quarter pace of 2007). 27 of the last 28 GP commitments have been outside of Canada, despite the fact that the Canadian banking system and economy is one of the strongest in the world.

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 Q2, not CPPIB’s fiscal Q2).

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 March 31, 2008, subject to GAAP fair value accounting. MM means millions.

As we’ve done in the past, I’ve added our own Fund II returns (as at Q3/08) 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 $125.9MM Fund III that month (CPPIB doesn’t have $ in our Fund III via TD’s VC fund-of-fund program):

Canadian Venture Funds

Celtic House VP Fund II (2002 US$):
$13.5MM, $13.1MM (97%), $9.7MM, $20.5MM (+56.5%)

Celtic House VP Fund III (2005 US$):
$50MM, $21.6MM (43%), $16.5MM, $16.6MM (-23.1%)

Edgestone Venture Fund (2000):
$50MM, $44.7MM (89%), $10.3MM, $51.0MM (+14.1%)

Edgestone Venture Fund II (2004):
$50MM, $37.6MM (75%), $32MM, $32MM (-14.9%)

Lumira/MDS Life Sciences Technology Fund II (2002):
$200MM, $104.3MM (52%), $48.5MM, $103.5MM (-0.8%)

Skypoint Telecom Fund II (2001 US$):
$25MM, $21.8MM (87.2%), $10.5MM, $14.1MM (-35.3%)

TD Capital Legacy VC Fund (2002):
$82MM (originally $100MM), $58.5MM (71%), $37.6MM, $47MM (-19.7%)

Ventures West 8 (2003):
$50MM, $36.6MM (73%), $30.1MM, $31.7MM (-13.4%)

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, $69.8MM (+24%)

Canadian Buyout Funds

Birch Hill Equity Partners III (2005):
$85MM, $41.8MM (49%), $41.7MM, $44.8MM (+7.2%)

Edgestone Equity Fund II (2002):
$100MM, $78.5MM (78.5%), $54.1MM, $111.4MM (+41.9%)

Edgestone Equity Fund III (2006):
$100MM, $33.2MM (33.2%), $30.7MM, $44.7MM (+34.6%)

Kensington Co-investment Fund (2002):
$40MM, $42.3MM (105.8%), $26.4MM, $70.4MM (+66.4%)

Onex Partners (2003 US$):
$150MM, $139.2MM (93%), $142.3MM, $309.9MM (+119%)

TD / CPPIB CDN Private Equity Holdings I (2006):
$400MM, $107.2MM, (27%), $99MM, $105.7MM) (-1.4%)

TD Capital CFOF Legacy Buyout (2002):
$121MM, $104.7MM (87%), $89.5MM, $134.7MM (+28.7%)

Tricap Restructuring Fund (2001):
$150MM, $151.8MM (101%), $27MM, $250.5MM (+65%)

Tricap II (2006):
$300MM, $188.1MM (63%), $144.8MM, $223.1MM (+18.6%)

Based upon drawn capital, it must be safe to assume that the following funds will be in fundraising mode very soon, if they aren’t already: Edgestone Venture at 75%, Tricap at 63% and Ventures West at 73%.

I’ll tackle the non-Canadian GP results later.

MRM