Hot Venture Funds from CalPERS’ Grove Street Portfolio: Slideshow


Vintage 2007 is a standout year for venture funds in CalPERS’ Grove Street Advisors portfolio, according to a peHUB analysis of the California Public Employees’ Retirement System’s most recent fund performance report.

Eleven of these funds now midway through their expected life boast positive IRRs, and only three have negative ones. Cash distributions are limited, but portfolio values are high. And fund choices are anything but the standard fare.

The year is the strongest of the past decade for Grove Street money managers, the analysis found. Vintage 2008 also was good, but its median IRR trails the median for 2007. Vintage 2006 was poor.

In this week’s slideshow, we highlight the ten funds in the portfolio with the highest IRRs. We zeroed in on the vintage years 2006 through 2009.

As a point of background, CalPERS relies on several fund managers to help it keep tabs on its venture capital portfolio. Hamilton Lane is one. Oak Hill Investment Management is another. Centinela Capital Partners is a third.

The largest pot of funds is the responsibility of fund-of-funds outfit Grove Street, which began managing an investment initiative called California Emerging Ventures in 1998.

The effort now has commitments of more than $3.2 billion, contributed capital of more than $2.7 billion and distributions of nearly $2.2 billion. No new funds have been purchased since 2009, according to the CalPERS report updated to September 2011. In the past decade, 2006 and 2007 were especially active years, with 2005 also seeing a significant number of investment decisions. Purchases slowed in 2008 and 2009.

This Monday’s slideshow highlights IRRs, capital calls, distributions and other details. Next Monday we will look at the opposite end of the spectrum and post the 10 funds with the worst IRRs.

Photo courtesy of Shutterstock.

[slideshow]

[slide title=”No. 10: Battery Ventures VIII”]

Vintage: 2007

Commitment: $6 million

Cash In: $5.4 million

Cash Out: $232,000

Portfolio Value and Cash Out: $6.6 million

IRR: 8.9%

[slide title=”No. 9: OpenView Venture Partners”]

Vintage: 2007

Commitment: $10 million

Cash In: $8.7 million

Cash Out: 0

Portfolio Value and Cash Out: $11.6 million

IRR: 9.9%

[slide title=”No. 8: Technology Crossover Ventures VI”]

Vintage: 2006

Commitment: $20 million

Cash In: $19.3 million

Cash Out: $16.9 million

Portfolio Value and Cash Out: $25.9 million

IRR: 11.4%

[slide title=”No. 7: OrbiMed Private Investments III”]

Vintage: 2007

Commitment: $10 million

Cash In: $8.9 million

Cash Out: $2.2 million

Portfolio Value and Cash Out: $12.6 million

IRR: 13.1%

[slide title=”No. 6: GRP III”]

Vintage: 2009

Commitment: $5 million

Cash In: $2.7 million

Cash Out: 0

Portfolio Value and Cash Out: $3.2 million

IRR: 13.4%

[slide title=”No. 5: Carmel Ventures III”]

Vintage: 2008

Commitment: $5 million

Cash In: $2.3 million

Cash Out: 0

Portfolio Value and Cash Out: $3 million

IRR: 17.2%

[slide title=”No. 4: Battery Ventures VIII Side Fund”]

Vintage: 2008

Commitment: $3 million

Cash In: $2.1 million

Cash Out: 0

Portfolio Value and Cash Out: $3.1 million

IRR: 23.8%

[slide title=”No. 3: Flagship Ventures Fund 2007″]

Vintage: 2007

Commitment: $15 million

Cash In: $11 million

Cash Out: $1.7million

Portfolio Value and Cash Out: $23.3 million

IRR: 43.6%

[slide title=”No. 2: Foundry Venture Capital 2007″]

Vintage: 2007

Commitment: $10 million

Cash In: $8.4 million

Cash Out: $2.5 million

Portfolio Value and Cash Out: $29.4 million

IRR: 71.6%

[slide title=”No. 1: Avalon Ventures VIII”]

Vintage: 2007

Commitment: $15 million

Cash In: $10.7 million

Cash Out: $8.8 million

Portfolio Value and Cash Out: $55.5 million

IRR: 115.9%

[/slideshow]