The University of California has been a steady buyer of venture funds since the dot-com implosion at the end of the last century.
Investments dipped at the start of the last decade. But enthusiasm rose starting in 2004 and has continued.
Even during the difficult year of 2008, the regents of the Golden State committed $167 million to venture funds, followed by another $102 million during equally unsettled 2009.
In 2004, allocations increased to $213.4 million, and from 2004 to 2007 averaged $235 million annually. During this binge, the giant LP bought into funds from Polaris Venture Partners, GGV Capital, Canaan Partners, DCM, ARCH Venture Partners and other firms.
Overall returns from these years have been mixed. This could change substantially since many of the funds are in mid-life.
Which fund is No. 1, with an IRR of 26.2 percent? Watch our slideshow to find out.
(Note: The following slideshow shows the top 2004-2006 funds from the University of California’s venture portfolio based on IRR data updated through December, listed from worst to best. The regents doesn’t release IRR calculations for more recent funds. Some data in the slideshow come from Thomson Reuters, publisher of this blog.)
[slideshow]
[slide title=”No. 9 (tied): Polaris Venture Partners V”]
Vintage: 2005
Firm: Polaris Venture Partners
Stage: Early
Commitment: $38 million
Cap In: $26.2 million
Cap Out: $2.1 million
Portfolio NAV: $27.2 million
IRR: 5%
[slide title=”No. 9 (tied): Trinity Venture IX”]
Vintage: 2005
Firm: Trinity Ventures
Stage: Early
Commitment: $20 million
Cap In: $16.1 million
Cap Out: $3.4 million
Portfolio NAV: $14.8 million
IRR: 5%
[slide title=”No. 8: Caduceus Private Investments III”]
Vintage: 2006
Firm: OrbiMed Advisors
Stage: Later
Commitment: $20 million
Cap In: $16.9 million
Cap Out: $2.2 million
Portfolio NAV: $18.3 million
IRR: 8.9%
[slide title=”No. 7: DCM Fund IV”]
Vintage: 2004
Firm: DCM
Stage: Early
Commitment: $10 million
Cap In: $9.5 million
Cap Out: $2.3 million
Portfolio NAV: $11.8 million
IRR: 9.8%
[slide title=”No. 6: Granite Global Ventures III”]
Vintage: 2006
Firm: GGV Capital
Stage: Later
Commitment: $37.5 million
Cap In: $30 million
Cap Out: $4 million
Portfolio NAV: $32.7 million
IRR: 11%
[slide title=”No. 5: Canaan Equity Partners VII”]
Vintage: 2005
Firm: Canaan Partners
Stage: Early
Commitment: $35 million
Cap In: $28.7 million
Cap Out: $1.6 million
Portfolio NAV: $38.5 million
IRR: 11.7%
[slide title=”No. 4: Granite Global Ventures II”]
Vintage: 2004
Firm: GGV Capital
Stage: Later
Commitment: $25 million
Cap In: $23.9 million
Cap Out: $10.7 million
Portfolio NAV: $28.4 million
IRR: 12.5%
[slide title=”No. 3: ARCH Venture Fund VI “]
Vintage: 2004
Firm: ARCH Venture Partners
Stage: Seed
Commitment: $25 million
Cap In: $22.1 million
Cap Out: $883,000
Portfolio NAV: $33.5 million
IRR: 13.3%
[slide title=”No. 2: Insight Venture Partners V”]
Vintage: 2005
Firm: Insight Venture Partners
Stage: Generalist
Commitment: $27 million
Cap In: $25.9 million
Cap Out: $25.2 million
Portfolio NAV: $21.7 million
IRR: 21.2%
[slide title=”No. 1: Insight Venture Partners V Coinvestment”]
Vintage: 2005
Firm: Insight Venture Partners
Stage: Generalist
Commitment: $8.4 million
Cap In: $8.4 million
Cap Out: $10.2 million
Portfolio NAV: $7.8 million
IRR: 26.2%
[/slideshow]
