CPPIB U.S.A. general partner Q2 2008 performance numbers

A few days ago we published the Q2 results for the ever-diminishing number of Canadian GPs (“CPPIB Canadian general partner Q2 2008 performance numbers“, November 22-08) that can still count the CPP Investment Board as a direct limited partner. Here are the U.S. results, as of June 30, 2008.

As we have highlighted in previous U.S. return reports, the more recent the commitment, the worse the return figure is likely to be. Unfortunately, this coincides with the huge jump in CPPIB commitments to late decade funds, but these are early days still.

The one outlier is the new commitment to Chicago’s CIVC Partners. From the CPPIB website, the data tells us that CPPIB just commited $23.2MM to their new Fund IV. This is a follow-on to their 2002 Fund III commitment of $34.1MM. If the data is right, CIVC Partners only put 60% of the 2002 fund out the door during the past six years.

What’s odd about this is i) that there wasn’t enough deal flow to put out much more than half of CIVC Fund III over half a decade, ii) that CPPIB’s 2008 commitment is smaller than 2002 (when all of their other commitments are growing), and iii) that CPPIB would do a commitment that is so “small”, at US$23.2MM.

One of the complaints that Canadian GPs have is that when CPPIB turns them down, the excuse is that they “need” to be able to commit hundreds of millions of dollars to a fund “to move the needle”. As a result, the industry gets sent over to their domestic fund-of-fund manager (TD Capital Private Equity Partners), instead. TD PEP is run by John Greenwood and Stuart Waugh. More details can be found here.

If CPPIB is back in the business of US$23.2MM direct fund commitments, the entire Canadian venture capital community and entrepreneurial ecosystem will be doing backflips. The federal government will breathe a sigh of relief, as well (see prior post “CVCA injects some fresh ideas into the federal elecion campaign” October 6-08).

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 June 30, 2008, subject to GAAP fair value accounting. The year in the brackets reflects the year that the investment commitment was made by CPPIB. MM equals millions:

Apollo Investment Fund V (2002): $150MM, $130.8 (87%), $117.5MM, $460.9MM; +252.4%

Apollo VI (2005): $419.3MM, $303MM (72%), $328.7MM, $383MM; +26.4%

Apollo VII (2007): $600MM, $45.6MM (8%), $45.1MM, $45.1MM; -1.1%

Blackstone Capital Partners IV (2002): $200MM, $144.1MM (72%), $140.4MM, $391.4MM; +171.6%

Blackstone Capital Partners V (2005): $410.0MM, $278.1MM (68%), $272.4MM, $299.4MM; +7.7%

Carlyle Venture Partners II (2002): $60MM, $65MM (108%), $47.4MM, $72.1MM; +10.9%

CIVC Partners Fund III (2002): $34.1MM, $20.3MM (60%), $26.1MM, $26.1MM; +28.6%

CIVC Partners Fund IV (2008): $23.2MM, no commitments yet drawn

CSFB Mid Market Opportunity Fund (2003): $140MM, $98.7MM (71%), $105MM, $120.6MM; +22.2%

CSFB Mid Market Opportunity Fund II (2005): $300MM, $78.4MM (26%), $71.5MM, $79.1MM; +0.9%

CSFB Mid Market Opportunity Fund III (2007): $400MM, $14.2MM, $13.8MM, $13.8MM; -2.8%

First Reserve Fund XI (2006): $300MM, $189MM (63%), $209.1MM, 209.1MM; +10.6%

Goldman Sachs Vintage Fund IV (2006): $200MM, $74.6MM (37%), $79.4MM, $82.9MM; +11.1%

Heartland Industrial Partners (2001): $150MM, $140.4MM (94%), $31MM, $38.5MM; -72.6%

Hellman & Friedman Capital Partners V (2004): $75MM, $68.7MM (92%), $77.7MM, $136.1MM; +98.1%

Hellman & Friedman Capital Partners VI (2006): $400MM, $231.1MM (58%), $234.2MM, $239MM; +3.4%

JP Morgan Partners Global Investors (2001): $217.6MM, $196.8MM (90%), $143.9MM, $274.8MM; +39.6%

JP Morgan Partners Global Investors (Selldown) II (2006): $317.4MM, $294.7MM (93%), $22.1MM, $419.3MM; +42.3%

KKR Millenium Fund (2002): $300MM, $275.2MM (92%), $265.7MM, $449.5MM; +63.3%

KKR 2006 (2006): $475MM, $337.5MM (71%), $354MM, $354.4MM; +5%

Lehman Brothers Venture Partners 2003 (2003): $75MM, $66.7MM (89%), $65.1MM, $80MM; +19.9%

Lightyear Fund II (2006): $100MM, $47.5MM (48%), $38.7MM, $39.9MM; -16%

MidOcean Partners (2003): $273.1MM, $256.2MM (94%), $52.8MM, $561.1MM; +119%

MidOcean Partners (2005): $100MM, $0.8MM (1%), $0.2MM, $0.2MM; -75%

New Mountain Partners III (2007): $200MM, $26.6MM (13%), $23MM, $23MM; -13.5%

Paul Capital Holdings (2002): $81MM, $73.1MM (90%), $20.3MM, $157.7MM; +115.7%

Paul Capital Holdings II (2004): $120MM, $104.1MM (87%), $82MM, $228.1MM; +119.1%

Paul Capital Partners VII (2001): $90MM, $85.3MM (95%), $32MM, $138.2MM; +62%

Paul Capital Partners VIII (2004): $100MM, $77.8MM (78%), $73.2MM, $107.7MM; +38.4%

Paul Capital Partners IX (2007): $100MM, $9.8MM (10%), $9.1MM, $9.1MM; -7.1%

Paul Capital Top Tier II (2002): $96MM, $73MM (76%), $66.1MM, $79.8MM; +9.3%

Paul Capital Top Tier Investments III (2005): $160MM, $59.2MM (37%), $57.7MM, $61.1MM; +3.2%

Performance Venture Capital (2005): $185MM, $56.7MM (31%), $54.2MM, $62.6MM; +10.4%

Providence Equity Partners VI (2006): $400MM, $166.8 (42%), $167.7MM, $167.8MM; +0.6%

Resolute Fund II (2007): $200MM, $30MM (15%), $26.3MM, $26.4MM; -12%

Silver Lake Partners II (2004): $100MM, $86MM (86%), $92.7MM, $116.7MM; +35.7%

Silver Lake Partners III (2006): $500MM; $62.5MM (13%), $56.1MM, $56.1MM -10.2%

Thomas Weisel Partners GGP II (2003): $50MM, $44.5MM (89%), $42MM, $59.7MM; +34.2%

TPG Partners IV (2003): $100MM, $90.4MM (90%), $105MM, $163.4MM; +80.8%

TPG Partners V (2006): $500MM, $401.6MM (80%), $317.9MM, $379.1MM; -5.6%

TPG VI (2008): $750MM, $34MM (5%), $19.5MM, $19.5MM -42.6%

Welsh, Carson, Anderson & Stowe X (2005): $200MM, $146MM (73%), $164.7MM, $164.7MM; +12.8%

Welsh, Carson, Anderson & Stowe X (2008): $300MM, no funds drawn

MRM