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Small- and mid-cap funds have been alpha generators for the pension system's PE portfolio, according to chief investment officer Farouki Majeed.
'Parts of the legacy portfolio do not have a prospect of generating a return commensurate with the risk and the illiquidity entailed, and may not provide a return at all,' CIO Narv Narvekar wrote.
Its first fund, a 2008-vintage, still has four remaining assets and is operating at 0.8x gross total value, according to a source with knowledge of the matter.
On the Q3 earnings call, the co-founder highlighted portfolio company hiring and investment returns at the firm, whose assets under management have hit a record $554bn.
The average total-value-to-paid-in multiple of active LBO funds hit 1.43x in the second quarter of this year – the lowest point in three years, according to eFront.
Funds I and II generated huge loss ratios but changed strategy Fund III onwards brought the ratio to zero.
The pension system has reviewed opportunities from more than 20 GPs and made more than 54 private equity co-investments.
Benelux, Nordic and UK funds were the highest performers in Europe as of end-2018, generating at least 16% IRR each.
Commitments to fewer managers and sale of non-core managers on the secondaries market led to mega and large buyout funds exposure dropping by 29.5% from December 2009 to Q1 2019.
Private equity buy-and-builds are on the rise, driven in part by rising multiples and increasing dry powder, but how are today’s add-ons different from before? PwC’s Friederich von Hurter and Filip Debevc discuss how firms can create maximum value from their acquisitions