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: