CPPIB Canadian general partner Q3 2007 performance numbers

18 weeks have passed since the end of the third quarter of 2007, but the CPP Investment Board GP results for the September quarter are just now available.

This post covers the Canadian general partners that have been lucky enough to receive a limited partner commitment from the CPPIB. Sadly, Canada’s very own pension fund didn’t make a single new direct formal commitment to a Canadian general partner (Buyout, Venture or Mezannine) during the first nine months of 2007. The CPPIB team did commit, however, to ten U.S. and international GPs during that same time frame. This may, in part, explain why Canada is suffering from a venture capital crisis (see prior posts “Deloitte’s study on Canadian VC Crisis is well-timed“, December 6-07 and “Ontario politicians asked to address deteriorating VC climate part 2” October 26-07).

If you are a regular visitor to the site, you’ll know that we’ve previously pulled 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 Q3, not CPPIB’s fiscal Q3).

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 September 30, 2007, subject to GAAP fair value accounting. MM means millions.

In the interests of transparency, I’ve added our own Fund II returns (as at Q3/07) 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, $12.9MM (95.6%), $16MM, $22.9MM (+77.5%)

Celtic House VP Fund III (2005):
$50MM, $17MM (34%), $11.9MM, $12MM (-29.4%)

Edgestone Venture Fund (2000):
$50MM, $44.6MM (89.2%), $10.2MM, $50.1MM (+12.3%)

Edgestone Venture Fund II (2004):
$50MM, $32.1MM (64.2%), $27.7MM, $27.7MM (-13.7%)

MDS Life Sciences Technology Fund II (2002):
$200MM, $98.8MM (49.4%), $51.9MM, $93.9MM (-5.0%)

Skypoint Telecom Fund II (2001 US$):
$25MM, $20.4MM (81.6%), $10.1MM, $13.7MM (-32.8%)

TD Capital Legacy VC Fund (2002):
$82MM (originally $100MM), $52.3 (63.8%), $34.2MM, $41.2MM (-21.2%)

Ventures West 8 (2003):
$50MM, $30.3 (60.6%), $24.9MM, $25.2MM (-16.8%)

Wellington Financial Fund II (December 2004):
(CPPIB participated in our $83MM Fund II via a $10MM commitment by the Legacy VC Fund)
$83MM, $56.3MM (67.9%), $18.3MM, $69.6MM (+23.5%)

Canadian Buyout Funds

Birch Hill Equity Partners III (2005):
$85MM, $32.8MM (38.6%), $32.7MM, $35.8MM (+9.1%)

Edgestone Equity Fund II (2002):
$100MM, $77.8MM (77.8%), $64MM, $116.1MM (+49.2%)

Edgestone Equity Fund III (2006):
$100MM, $41.0MM (41.0%), $35.8MM, $38.2MM (-6.8%)

Kensington Co-investment Fund (2002):
$40MM, $39.9MM (99.8%), $55.4MM, $59.9MM (+50.1%)

Onex Partners (2003 US$):
$150MM, $127.3MM (84.9%), $182.1MM, $342.7MM (+169.2%)

Perseis Private Equity (2002):
$75MM, $56.2MM (74.9%), $37.7MM, $51.9MM (-7.7%)

TD Capital CFOF Legacy Buyout (2002):
$121MM, $90.4MM (74.7%), $84.2MM, $110.5MM (+22.2%)

Tricap Restructuring Fund (2001):
$150MM, $150.9MM (100.6%), $72.1MM, $213.1MM (+41.2%)

Tricap II (2006):
$300MM, $98.6MM (32.9%), $40.6MM, $86.2MM (-12.6%)

Tricap’s 2001 fund appears to have undergone a negative event between Q2 and Q3, with about $46 of value erased from the “reported value + distributions” column — dropping a 71% gain on the original investment as at June 30th to 41% (see post “CPPIB Canadian general partner Q2 2007 performance numbers” November 16-07). Perhaps the stock market meltdown hurt the value of a stake in a publicly-traded investment.

MRM