Indiana Pension Fund’s Post Dot-Com Fling With Venture Shows Encouraging Results: Slideshow

The Indiana Public Retirement System renewed its post dot-com era commitment to venture capital earlier than many public pension funds.

With the memory of the stock market bust just beginning to fade, the INPRS stepped up venture investing in 2005, matched the pace in 2006 and maintained a steady clip of fund sign-ups through 2009, according to a peHUB analysis of a recent private equity portfolio report.

The money manager invested in 33 funds from 2005 to 2010, the vast majority of which are seed and early stage, or which have a balanced or generalist’s approach, the analysis shows.

Results appear quite respectable. Twenty-six of the funds, including four investments made in 2004, have positive IRRs and 11 have negative ones. The system has a handful of funds of funds, which have been left out of the analysis.

The median IRR for the 16 balanced and generalist’s funds the INPRS joined from 2004 to 2010 is an impressive 8.83%, with 11 boasting positive IRRs and five negatives ones, according to the portfolio report updated to January 2012. The median for the 17 seed and early stage funds is -1.18, though 11 funds have IRRs in the positive column and six have ones in the negative, the peHUB analysis found.

Both the system’s two late stage funds have positive IRRs and both secondary funds do as well.

In this week’s slideshow, we look at the 14 investments from 2005 and 2006 that kicked off INPRS’s buying binge. They are listed by IRR, from worst to best, with accompanying commitment and cash levels. Next week, we will examine some of the more recent fund commitments and their performance. For our analysis, we relied on fund information from Thomson Reuters, publisher of this blog.

The Indiana Public Retirement System had $22.2 billion of assets under management at the end of fiscal 2010 and set a private equity allocation target of 10% in October 2011.

[slideshow]

[slide title="No. 1: CHP III"]

Vintage: 2006

Firm: Cardinal Partners

Commitment: $15 million

Cash In: $7.9 million

Cash Out: $33,348

Portfolio Value: $6.7 million

IRR: -8.95%

[slide title="No. 2: Aisling Capital II"]

Vintage: 2005

Firm: Aisling Capital

Commitment: $5 million

Cash In: $4.3 million

Cash Out: $655,774

Portfolio Value: $2.7 million

IRR: -6.86%

[slide title="No. 3: Pacven Walden Ventures VI"]

Vintage: 2006

Firm: Walden International

Commitment: $20 million

Cash In: $17.7 million

Cash Out: $2.6 million

Portfolio Value: $13.6 million

IRR: -4.02%

[slide title="No. 4: True Ventures 1"]

Vintage:  2006

Firm: True Ventures

Commitment: $5 million

Cash In: $4.2 million

Cash Out: $35,147

Portfolio Value:$3.8 million

IRR: -2.85%

[slide title="No. 5: Oak Investment Partners XII"]

Vintage: 2006

Firm: Oak Investment Partners

Commitment: $5 million

Cash In: $4.6 million

Cash Out: $681,102

Portfolio Value: $4.1 million

IRR: 1.72%

[slide title="No. 6: Globespan Capital Partners V"]

Vintage: 2006

Firm: Globespan Capital Partners

Commitment: $5 million

Cash In: $4 million

Cash Out: $875,636

Portfolio Value: $4.1 million

IRR: 3.48%

[slide title="No. 7: Landmark Equity Partners XIII"]

Vintage: 2005

Firm: Landmark Equity Partners

Commitment: $10 million

Cash In: $9.7 million

Cash Out: $7.3 million

Portfolio Value: $3.1 million

IRR: 4%

[slide title="No. 8: Indiana Investment Fund I"]

Vintage: 2006

Firm: Credit Suisse Private Equity

Commitment: $100 million

Cash In: $75.9 million

Cash Out: $21 million

Portfolio Value: $70.1 million

IRR: 4.1%

[slide title="No. 9: Trinity Ventures IX"]

Vintage: 2005

Firm: Trinity Ventures

Commitment: $5 million

Cash In: $4.2 million

Cash Out: $852,325

Portfolio Value: $3.9 million

IRR: 4.23%

[slide title="No. 10: Columbia Capital Equity Partners IV (QP)"]

Vintage: 2005

Firm: Columbia Capital

Commitment: $5 million

Cash In: $4.4 million

Cash Out: $975,080

Portfolio Value: $4.8 million

IRR: 7.32%

[slide title="No. 11: Bay Partners XI"]

Vintage: 2005

Firm: Bay Partners

Commitment: $5 million

Cash In: $3.8 million

Cash Out: $1.2 million

Portfolio Value: $3.6 million

IRR: 7.35%

[slide title="No. 12: DCM V"]

Vintage: 2006

Firm: DCM

Commitment: $5 million

Cash In: $4.8 million

Cash Out: NA

Portfolio Value: $6 million

IRR: 8.7%

[slide title="No. 13: Weston Presidio Capital V"]

Vintage: 2005

Firm: Weston Presidio

Commitment: $5 million

Cash In: $3.9 million

Cash Out: $2.1 million

Portfolio Value: $3.2 million

IRR: 8.76%

[slide title="No. 14: Insight Venture Partners V"]

Vintage: 2005

Firm: Insight Venture Partners

Commitment: $5 million

Cash In: $5 million

Cash Out: $5 million

Portfolio Value: $4.8 million

IRR: 21.79%

[/slideshow]

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