ENDEAVOUR CAPITAL PERFORMANCE LAGS PEERS

The report finds that Endeavour Capital's Funds V, VI, and VII have underperformed their peers in terms of quartile rankings and capital return rates as of early 2018. It highlights significant risks within its portfolio, including the impact of bail reform on Aladdin Bail Bonds, financial instability and regulatory issues at ZOOM+Care, and poor student outcomes and federal funding reliance at Southern Careers Institute.

• Endeavour Capital's most recent funds—Fund V (2008), Fund VI (2011), and Fund VII (2014)—all ranked in the 3rd or 4th quartiles relative to peers as of the end of the fourth quarter 2017.
• Endeavour Capital has been slower than its peers to return capital to investors. By Q1 2018, Fund V had returned only 57% of called capital compared to a median of 107% for 2008 vintage funds; Fund VI returned 33% versus a 53% median; and Fund VII returned less than 1% versus a 12% median.
• The value of Funds V, VI, and VII is heavily concentrated in current portfolio companies, making returns dependent on Endeavour's own valuations and its ability to exit these companies at or above those prices.
• Aladdin Bail Bonds and its insurer Seaview Insurance have seen a decline in premiums, particularly in California, due to sentencing and bail reform such as Proposition 47 and legislation banning for-profit bail in August 2018.
• ZOOM+Care experienced severe financial distress, with its health plan taken into receivership by Oregon regulators in April 2017. Internal communications and lawsuits indicated the company was on the "brink of insolvency" and unable to pay vendors.
• Southern Careers Institute (SCI) has relied heavily on federal Title IV revenue, which accounted for at least 87% of its revenue in most years since acquisition. In the academic year ended June 2015, it violated the US Department of Education’s 90/10 Rule by deriving more than 98% of its revenue from federal sources.

APA

Baker, J. (2018). ENDEAVOUR CAPITAL PERFORMANCE LAGS PEERS. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2018/09/Endeavour-Capital-Performance-Lags-Peers-PESP-090618.pdf

Chicago

Baker, Jim. ENDEAVOUR CAPITAL PERFORMANCE LAGS PEERS. Private Equity Stakeholder Project, 2018. https://pestakeholder.org/wp-content/uploads/2018/09/Endeavour-Capital-Performance-Lags-Peers-PESP-090618.pdf.

Wikipedia

{{cite report |last1=Baker |first1=Jim |title=ENDEAVOUR CAPITAL PERFORMANCE LAGS PEERS |publisher=Private Equity Stakeholder Project |date=September 2018 |url=https://pestakeholder.org/wp-content/uploads/2018/09/Endeavour-Capital-Performance-Lags-Peers-PESP-090618.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{baker2018endeavour, author = {Baker, Jim}, title = {{ENDEAVOUR CAPITAL PERFORMANCE LAGS PEERS}}, institution = {Private Equity Stakeholder Project}, year = {2018}, month = sep, url = {https://pestakeholder.org/wp-content/uploads/2018/09/Endeavour-Capital-Performance-Lags-Peers-PESP-090618.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }