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Yale Raises Its Private Equity Allocation, But Not By Choice
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 In reality, however, Swenson didn't have much of a choice. As of last June, Yale's actual exposure to private equity was at 24.3 percent. That's a major climb from 20.2% the prior year, and nearly 10 percentage points higher than Yale's private equity allocation just four years earlier. In other words, raising the target allocation was largely an effort to reflect reality. "But wait," says rhetorical reader. "Why is Swensen raising the target even above current exposures, other than because he really believes in the asset class?" Well, I'm glad you asked. Read more »
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Emerald Technology Ventures, a Zurich-based VC firm focused on cleantech investments, is nearing a first close on its third fund, according to Green Energy Reporter. The fund is being marketed with a €150 million target, after having raised €135 million for its second vehicle. www.emerald-ventures.com Read more »
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One Partner Down: The Future of FA Technology Ventures
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 Sekhar’s case hasn’t progressed much since then, with the only available paperwork being the original three-page indictment. A rep from the Albany County DA’s office would only say that the case is “ongoing,” while Sekhar didn’t reply to email requests for comment. But I was curious as to what all this scumdrudgery means for FA Technology Ventures, the firm at which Sekhar had been a partner (he officially left in late December, just as the fan began to stink). A firm spokesman declined to comment, so let’s move onto anonymous sourcing: Read more »
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LONDON(Reuters) - Fund firm PSource Capital plans to set up a fund investing in Chinese infrastructure and seeded with hundreds of millions of dollars from a Chinese investor as funds increasingly look East for new investment opportunities. PSource chief executive Soondra Appavoo told Reuters that the institutional investor, which he declined to name, was doing due diligence on PSource and that the fund could be launched within months. The fund would initially be just for the institution but could later be opened up to other investors. An increasing number of hedge funds and other investment firms are opening offices in Asia or launching new funds focused on the region on the back of a strong rebound from markets last year and what they view as attractive investment opport
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Easton Capital is raising a pair of new funds, according to VentureWire. One will be a traditional biotech VC fund with a target of between $100 million and $200 million. The other will be focused on biotech companies that can produce returns within three-to-five years, and comes with a $50 million to $75 million target. www.eastoncapital.com Read more »
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 Yale disclosed on Thursday that it had increased significantly its allocations to those sometimes risky and illiquid asset classes at the end of its last fiscal year in June, 2009. "If diversification fails to protect a portfolio in the face of a financial panic, why bother to diversify?," Swensen's investment group wrote in the university's annual endowment report released on Thursday. "The answer lies in the diversified portfolio's lower risks and higher returns." As a result, Yale's investment committee voted at the close of its fiscal year to increase its targeted allocation in private equity to 26 percent from 21 percent and in commodities and real estate to 37 percent from 29 percent, Yale disclosed in the report. Read more »
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Calpers Funds in Full Compliance
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 It's not clear where the mix-up occurred in every instance, but Calpers has announced that 100% of the firms are now in compliance and have submitted forms detailing their placement agent usage while securing commitments from the pension fund. So the following firms are officially vindicated: EnerTech Capital, Fenway Partners, GTCR, Information Technology Ventures, Markstone Capital, Pinnacle Ventures, Ripplewood and TSG Capital You can download their forms below. Read more »
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The Carlyle Group Goes Green
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 The mega-buyout firm, in partnership with the Environmental Defense Fund, will implement something called "Eco ValueScreen." It's a due diligence process that identifies places for improvement as well as that holy grail of "value creation" in acquisition targets, all with the purpose of reducing a company's environmental impact. The screen was developed by Carlyle and EDF alongside environmental consulting firm The Payne Firm. The firms haven't estimated any exact savings figure for Carlyle, but the idea is that the screen goes beyond basic risk mitigation in the diligence process Further, other buyout firms will be able to implement the screen for their own diligence processes. Read more »
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Expect KKR To Begin Next Fundraise in Q3
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I was off duty last week when KKR filed the S-1 for its un-IPO, and neglected to take an actual look until yesterday. Not too much new info, save for the following fund performance data (through 12/31/09) that I haven’t seen reported elsewhere:
* European Fund (1999): 100% called, 19.9% net IRR * Millennium Fund (2002): 100% called, 17.7% net IRR * European Fund II (2005): 100% called, -13.4% net IRR * 2006 Fund (2006): 74% called, -2.8% net IRR Since its founding, KKR funds have a 19.2% net IRR. My first thought upon seeing the numbers was that the 2006 Fund is beginning to look a bit light on dry powder, particularly given that mega-buyout funds from that vintage may need to hold a bit more reserve capital than usual (due to possible refinancings, etc.). Plus, KKR keeps being tied to possible multi-billion take-privates like Harley-Davidson. Read more »
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AOL Inc. has launched a venture capital fund focused on "hyper-local" Internet startups, as part of a larger strategic focus on expanding the company's local content. PaidContent reports that the fund size is $10 million. Read more »
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Lexington Partners Crosses $3 Billion Mark
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 As of last week, the firm had secured $2.378 billion in commitments from 91 US-based investors and $730.2 million in commitments from 48 overseas investors. Park Hill is serving as placement agent. Read more »
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Better Late Than Never: Avista Closes Second Fund
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 Following a first close on around $1 billion in August 2008, Avista basically sat on the sidelines while the financial world -- and PE fundraising environment -- collapsed around it. After gaining a fundraising extension in August 2009, the firm decided to tap the market again with a lowered target of around $2 billion (it had originally sought between $2.5 billion and $3 billion). Thompson Dean, Avista's co-CEO and co-managing partner, said the firm did not lower its target to merely appease LPs, but as a result of the dramatic changes in the market. “It was a reflection of reality,” he explained. Read more »
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