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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