CPPIB U.S.A. general partner Q4 2008 performance numbers

The excitement hasn’t ended for the U.S. and European general partners who ply their trade on behalf of the CPP Investment Board. This review covers the high profile U.S.-based GPs that count the CPPIB as a direct limited partner (as at December 2008).

Some of the more notable large moves between Q2 and Q4 are below (vintage year in brackets). That’s barely 6 months of time, but the moves are noteworthy:

• Apollo Inv. Fund V (2002) saw its return drop from 252% to 96%
• Apollo VI (2005), with 96% drawn, saw it’s 26.4% positive return turn into a negative 31%
• Blackstone IV (2002)’s return fell from 171.6% to 95%; 102% drawn
• Blackstone V (2005)’s return fell from 7.7% to a loss of 24%; 80% drawn
• First Reserve XII has already put out 29% of their 2008-vintage year fund
• KKR Millenium Fund (2002)’s return dropped from 63.3% to 15%
• KKR 2006 is 72% drawn, and a positive 5% return is now showing up as a negative 25%
• MidOcean Partners’s #II (2005) fund has still not closed a single deal since they raised their capital 3 years ago, and they’ve only drawn the smallest amount of mgmt. fees
• Providence’s VI (2006) fund is now 51% drawn, but went from being flat to down 22%
• TPG Partners IV (2003)’s return dropped from 80.8% to 22%; 105% drawn
• TPG Partners V (2006) remains drawn at 82% of CPPIB’s US$500 million, and they went from being down 5.6% to down 32%; this fund is the one with the bad investment experience in WaMu

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. 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, $217.3 (145%), $83MM, $426.4MM; +96%

Apollo VI (2005): $400MM, $383.8MM (96%), $206.9MM, $264.1MM; -31%

Apollo VII (2007): $600MM, $129.6MM (21.6%), $80.2MM, $80.2MM; -38.1%

Blackstone Capital Partners IV (2002): $185MM, $188.5MM (101.9%), $115.3MM, $367.2MM; +94.8%

Blackstone Capital Partners V (2005): $410MM, $327MM (79.8%), $222.2MM, $249.2MM; -23.8%

Blackstone Capital Partners VI (2008): $500MM, $0, $0, $0

Carlyle Venture Partners II (2002): $60MM, $69.2MM (115.3%), $37MM, $69.9MM; +1.0%

CCMP Capital Investors II (2006): $367.7MM, $100.6MM (27.4%), $72.9MM, $73.1MM (-27.3%)

CSFB Mid Market Opportunity Fund (2003): $140MM, $111.8MM (79.9%), $113.9MM, $139MM; +24.3%

CSFB Mid Market Opportunity Fund II (2005): $300MM, $123.9MM (41.3%), $115.8MM, $134.6MM; +8.6%

CSFB Mid Market Opportunity Fund III (2007): $400MM, $44.2MM (11.1%), $42.6MM, $42.6MM; -3.6%

First Reserve Fund XI (2006): $300MM, $225.2MM (75%), $177.6MM, $193.9MM; -13.9%

First Reserve Fund XII (2008): $500MM, $142.8MM (28.6%), $117.1MM, $117.1MM (-18.0%)

Goldman Sachs Vintage Fund IV (2006): $200MM, $132MM (66%), $114.3MM, $126.4MM; -4.2%

Goldman Sachs Vintage Fund V (2008): $300MM, $30M (10%), $30.3MM, $30.3MM; +1%

Heartland Industrial Partners (2001): $150MM, $140.4MM (94%), $26.4MM, $33.9MM; -75.9%

Hellman & Friedman Capital Partners V (2004): $75MM, $66.9MM (89%), $57.9MM, $118.1MM; +76.5%

Hellman & Friedman Capital Partners VI (2006): $400MM, $248MM (62%), $214.6MM, $220.8MM; -11%

JP Morgan Partners Global Investors (2001): $175MM, $166.9MM (95%), $83.1MM, $227.4MM; +36.2%

KKR Millenium Fund (2002): $282.5MM, $329.6MM (116.7%), $194.2MM, $378MM; +14.7%

KKR 2006 (2006): $475MM, $341.4MM (71.9%), $250.9MM, $254.9MM; -25.3%

Lightyear Fund II (2006): $100MM, $57.8MM (58%), $41.9MM, $43.1MM; -25.4%

MidOcean Partners (2003): $273.1MM, $258.5MM (94.7%), $43.7MM, $553.5MM; +114.1%

MidOcean Partners II (2005): $100MM, $0.8MM (1%), $0.2MM, $0.2MM; nmf%

New Mountain Partners III (2007): $200MM, $40.1MM (20.1%), $33.4MM, $36.1MM; -10.0%

Paul Capital Holdings II (2004): $120MM, $104.1MM (87%), $69.6MM, $220.3MM; +111.6%

Paul Capital Partners VII (2001): $90MM, $85.3MM (95%), $27.2MM, $135.3MM; +58.6%

Paul Capital Partners VIII (2004): $100MM, $85.1MM (94.8%), $70.8MM, $108.1MM; +58.6%

Paul Capital Partners IX (2007): $100MM, $28.3MM (28%), $25.8MM, $25.8MM; -8.8%

Paul Capital Top Tier II (2002): $96MM, $78.8MM (82.1%), $67.3MM, $82.9MM; +5.2%

Paul Capital Top Tier Investments III (2005): $160MM, $73.6MM (46%), $71.8MM, $77.1MM; +4.8%

Performance Venture Capital (2005): $185MM, $74.7MM (40%), $60.8MM, $70.1MM; -6.2%

Providence Equity Partners VI (2006): $400MM, $203.6 (50.9%), $157.9MM, $159.5MM; -21.7%

Resolute Fund II (2007): $200MM, $43.6MM (22%), $36.5MM, $36.6MM; -16.1%

Silver Lake Partners II (2004): $100MM, $92.8MM (93%), $59.1MM, $91.1MM; -1.8%

Silver Lake Partners III (2006): $500MM; $104.1MM (20.8%), $53.1MM, $53.1MM -49.0%

Thomas H. Lee Parallel Fund VI (2006): $250MM, $122.9MM (49%), $112.6MM, $113.1MM; -7.6%

Thomas Weisel Partners GGP II (2003): $50MM, $44.5MM (89%), $42MM, $59.7MM; +34.4%

TPG Partners IV (2003): $100MM, $105.3MM (105%), $96.1MM, $128.2MM; +21.7%

TPG Partners V (2006): $500MM, $409.8MM (82%), $269.4MM, $276.7MM; -32.5%

TPG VI (2008): $750MM, $38.1MM (5%), $8.4MM, $8.4MM; -78.0%

Welsh, Carson, Anderson & Stowe X (2005): $200MM, $164.0MM (82%), $147.6MM, $147.6MM; -10.0%

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

MRM