With the Pittsburgh Penguins two games away from winning their second straight Stanley Cup, owner Ron Burkle must feel he is on top of the world.
Investors in Burkle’s Yucaipa Cos. funds are likely not feeling the joy.
While Burkle has seen his personal 25 percent stake — a $20 million investment in the team in 1999 — grow into $120 million, a 13 percent annual return, Yucaipa investors aren’t doing as well, sources said Wednesday.
For example, the California Public Employees’ Retirement System, or CalPERS, invested $1.34 billion in the five funds Yucaipa Cos. raised from 2001 to 2008.
As of September 30, 2016, after factoring in returns over the years, the value of that investment is $1.5 billion. That amounts to a total return of about 11 percent — over more than a decade, according to CalPERS. During that span, Yucaipa made money investing in Whole Foods and other entities, while it lost on now-bankrupt A&P.
CalPERS declined to comment.
The Penguins, which break even during the regular season, earn roughly $750,000 per home playoff game. During the last two seasons, they have made roughly $10 million a year thanks to their deep playoff runs, sources said.
Burkle and co-investors bought the team for $107 million in 1999, and a new investor bought a small stake this year, valuing the Penguins at more than $600 million, sources said.
A Yucaipa spokesman declined to comment.