Woof! Woof! The 10 Biggest Dogs in UTIMCO’s Portfolio (slideshow)

After bringing you two slideshows that focused on the best-performing funds backed by the University of Texas Management Co., it’s time to “keep it real” by sharing the biggest losers.

(PeHUB subscribers can see our two previous slideshows here: UTIMCO in 17 Active Funds with IRRs > 25%Union Square … Other Early Stage Tech VCs Kick Ass for UTIMCO.)

We took a look at returns for all of UTIMCO’s active funds and found 10 that were at least a decade old and had negative internal rates of return as of May 31. The university pension fund invested a total of $176.2 million in those vehicles. In return, UTIMCO has received cash distributions of just $55.7 million (or less than one-third of what it put in). And it has no hope of breaking even on those bets — since the remaining funds are currently valued at a combined $39.7 million.

When looking at the 10 funds as a group, a few patterns emerge:

  • Eight of the 10 are venture funds.
  • Two firms had the ignominious distinction of having two funds on the list: Austin Ventures and Crescendo Ventures.
  • The oldest fund on the list is a 1996-vintage fund focused on small buyouts: Beacon Focus Value Investors.
  • And only one fund hasn’t returned a dime of capital to UTIMCO: Band of Angels.

Here, then, are the biggest dogs in UTIMCO’s kennel:

(Photo of basset hound by caimacanul/Shutterstock.)

[slideshow]

[slide title="No. 10: Baker Communications Fund II (QP), LP"]
BAKER CAPITAL
Partnership Name: Baker Communications Fund II (QP), LP
Capital Invested: $30,929,197.33
Capital Returned to UTIMCO: $9,998,916.73
Current Value: $13,979,116.76
Cash-on-Cash Return: 0.32
IRR: -4.06%
Fund Year: 2000
Fund Focus: U.S. mid-market buyout

[slide title="No. 9: Austin Ventures VII, LP"]
AUSTIN VENTURES
Partnership Name: Austin Ventures VII, LP
Capital Invested: $20,000,000.00
Capital Returned to UTIMCO: $8,382,757.03
Current Value: $6,486,461.07
Cash-on-Cash Return: 0.42
IRR: -4.75%
Fund Year: 1999
Fund Focus: U.S. growth (VC)

[slide title="No. 8: Austin Ventures VI, LP"]
AUSTIN VENTURES
Partnership Name: Austin Ventures VI, LP
Capital Invested: $21,001,952.63
Capital Returned to UTIMCO: $10,185,526.80
Current Value: $4,157,082.99
Cash-on-Cash Return: 0.48
IRR: -6.94%
Fund Year: 1998
Fund Focus: U.S. growth (VC)

[slide title="No. 7: Atlas Venture Fund VI, LP"]
ATLAS VENTURE
Partnership Name: Atlas Venture Fund VI, LP
Capital Invested: $15,506,452.07
Capital Returned to UTIMCO: $3,482,480.81
Current Value: $6,778,498.66
Cash-on-Cash Return: 0.22
IRR: -7.81%
Fund Year: 2001
Fund Focus: U.S. diversified VC

[slide title="No. 6: Crescendo IV, LP"]
CRESCENDO VENTURES
Partnership Name: Crescendo IV, LP
Capital Invested: $10,001,413.75
Capital Returned to UTIMCO: $1,976,674.23
Current Value: $2,435,951.57
Cash-on-Cash Return: 0.2
IRR: -9.28%
Fund Year: 2000
Fund Focus: U.S. technology VC early

[slide title="No. 5: Band of Angels Fund, LP"]
BAND OF ANGELS
Partnership Name: Band of Angels Fund, LP
Capital Invested: $10,121,549.63
Capital Returned to UTIMCO: $0.00
Current Value: $2,636,136.73
Cash-on-Cash Return: 0
IRR: -14.22%
Fund Year: 1999
Fund Focus: U.S. diversified VC early

[slide title="No. 4: Morgenthaler Partners VI, LP"]
MORGENTHALER MANAGEMENT PARTNERS
Partnership Name: Morgenthaler Partners VI, LP
Capital Invested: $10,007,031.25
Capital Returned to UTIMCO: $4,714,557.28
Current Value: $762,418.87
Cash-on-Cash Return: 0.47
IRR: -14.76%
Fund Year: 1999
Fund Focus: U.S. diversified VC

[slide title="No. 3: Beacon Group III - Focus Value Fund, LP"]
BEACON FOCUS VALUE INVESTORS
Partnership Name: Beacon Group III – Focus Value Fund, LP
Capital Invested: $23,996,991.25
Capital Returned to UTIMCO: $6,801,304.88
Current Value: $688,643.48
Cash-on-Cash Return: 0.28
IRR: -15.59%
Fund Year: 1996
Fund Focus: U.S. small buyouts

[slide title="No. 2: Crescendo III, LP"]
CRESCENDO VENTURES
Partnership Name: Crescendo III, LP
Capital Invested: $25,005,950.00
Capital Returned to UTIMCO: $9,321,857.65
Current Value: $1,375,028.10
Cash-on-Cash Return: 0.37
IRR: -16.58%
Fund Year: 1998
Fund Focus: U.S. technology VC early

[slide title="No. 1: JatoTech Ventures, LP"]
JATOTECH VENTURES
Partnership Name: JatoTech Ventures, LP
Capital Invested: $9,639,607.44
Capital Returned to UTIMCO: $840,116.46
Current Value: $416,002.55
Cash-on-Cash Return: 0.09
IRR: -37.50%
Fund Year: 1999
Fund Focus: U.S. technology VC early

[/slideshow]

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1 Comment

  • May I make a suggestion regarding article tagging at PEHub?

    For those of us going through the archive of articles, it would be useful (meaning more page views for PEHub) if the tags were more “conceptually” based.

    In this instance, a tag called “bad investments” or “investments gone bad” would be useful.

    Too many article tags are company or fund specific – which likely limits general *reader* interest.

    Most readers are going to be more interested in broad concepts than specific companies. Yet PEHub’s tagging efforts seem to run the other way…

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