My vote lately goes to Resilience Capital. Their Funds III and IV are a 0.6x TVPI with barely any capital returned. 10 companies and 8 of them are flat out zeros. Their hit rate is like an early stage VC fund.
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The one in Cleveland? That’s atrociously, embarrassingly bad. Do you have any more details you can share on here / in PMs?
https://www.sec.gov/litigation/admin/2017/ia-4721.pdf
What an insane way to burn your reputation. Relatively small amount of money too?!
How do clowns like this raise anything.
Sold them a business back in the day, that's sad to hear. Nice folks to deal with so at least they have that going for them.
First Reserve and Riverstone are neck and neck for most capital destroyed. I believe FR has an 8bn fund marked at close to an 0.5x. Both also managed to do GP stake sales, lining the pockets of the incompetent investors while fleecing LPs. Great job!
A lot of the O&G GP stakes deals (looking at you EnCap) perfectly timed the market. Great stuff
Any idea which are some of the better O&G funds based on performance? (relative to other O&G funds)
NGP, Quantum, Carnelian
how do these GP stake sales typically work? sell a portion of the GP Op Co and GP gets some money, LPs don't get anything back because returns on the fund suck yet GPs get some portion of the cash? But for the buyers purchasing these GP stake sales, wouldn't they value the stakes at a significant discount as well given the poor performance to their fund and pay just a little bit for the brand?
A lot of the GP stake sales happened at "peak O&G" before the 2015 price crash. You are right that they don't look great and the Dyals of the world are not super pleased. GPs got some cash out of the equity of the firm nothing to do with the actual invested funds though.
Here are a few big stinkers:
(1) Madison Dearborn V - $6.5bn fund size - 2006 vintage, 0.21x TVPI, 0.16x DPI
(2) Sofinnova Ventures VI - $252m fund size - 2003 vintage, 0.14x TVPI, fully realized at -20% IRR
(3) Candover 2008 - $3.85bn fund size - 2008 vintage, 0.20x TVPI, fully realized
Not sure where you're getting your MDP V info from, but MDP V is a 1.64x net TVPI
Thx. Was from pitchbook
Was going to say. MDP wouldn't be around if they had a .14x TVPI.
Yikes. Not too familiar with their history, but from vintage looks like they over-levered, GFC happened, and just had trouble getting out of those assets at a price they could stomach to their investors? How are their follow-on funds tracking?
Madison Dearborn completes eighth flagship fund at $5bn hard-cap | Buyouts (buyoutsinsider.com)
They seem to have done fine in terms of fundraising.
BC Partners
Thought their returns were fine, particularly after seeing this?
https://www.privateequityinternational.com/bc-partners-eyes-2023-return…
It looks like their MOIC is 2.9x, 1.7x, and 1.1x respectively; not the greatest for the last two funds, but not atrocious. Thoughts?
BC Partners, also quite dickheads
They're alright.
Where do you guys find these fund returns?
BBG has a number of them since public pensions typically have to publish their returns. Also pitchbook and other like-minded data sources. Easiest is to just take a look at CalPERS since they have so many funds: https://www.calpers.ca.gov/page/investments/about-investment-office/inv…
A bit of bias using CalPERS since their commitments are so big they'll often negotiate large fee breaks so returns could look a lot better for many GPs in their list.
Pitchbook
Preqin has a really good database, you gotta pay though. A lot of groups will actually put their returns on Preqin. Its where I got the MDP returns from above - listed source was "Madison Dearborn Partners"
Generally, pitchbook is a better source than preqin, apart from the mistake above. We have preqin and never use it cause managers just input their returns and they're often BS.
Bregal partners
Any details?
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