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University of Texas changes reporting of private equity performance data

The University of Texas’ investment arm has changed the way in which it reports overall performance data for its two private equity portfolios in order to reflect the long-term nature of the asset class.

‘Calculations of the portfolios’ annualised performances at one, three, five and ten-year intervals will no longer be done,’ Greg Lee, a spokesperson for the University of Texas Investment Management Company told Texas newspaper, the Star-Telegram.

Instead, only the internal rates of returns for the portfolios, dating to their inceptions in December 1982, will be calculated and released on a quarterly basis. The University of Texas has previously calculated and released both the time-based annualised returns and the total internal rates of return.

The University of Texas began releasing the private equity performance data last year in a controversial decision that was resisted by some private equity firms. But a court ruling has subsequently deemed the data to be public information.

The University of Texas has an estimated $1.2bn in private equity investments. Disclosed performance data for the third quarter of 2003 calculated the total internal rates of return for the two portfolios as 10.47 per cent and 8.55 per cent respectively.

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