Fund performance: Third Rock, Emergence, OrbiMed lead Calpers portfolio

Funds from Third Rock Ventures, Emergence Capital Partners and OrbiMed Advisors stand out in a California Public Employees’ Retirement System venture portfolio favoring small and mid-sized funds.

The Sacramento Private Equity Partners portfolio overall has solid performance with only two of the funds in the red and three out of four sporting IRRs above 10 percent.

However, funds from Third Rock, Emergence and OrbiMed boast IRRs above 45 percent, clearly upper-quartile performances for each, according to a recent Calpers portfolio report.

The portfolio is made up of 15 funds with late-decade vintages of 2007 to 2011 and frequently an early-stage focus. Only one of the funds has committed capital of more than $1 billion: New Enterprise Associates 13. Instead, the majority have capital under management in the $160 million to $750 million range.

Jasper Ridge Partners manages the portfolio for Calpers.

During the 12 months from June 2014 to June 2015, most of the funds saw a decline in performance. Emergence Capital Partners II, for instance, pulled back slightly but still held onto a 48 percent IRR as of June 2015, the report shows. By then, distributions from the 2007 fund were substantial.

OrbiMed Private Investments IV also had a strong performance with a 45.3 percent IRR as of June, according to the report.

The top performer was Third Rock Ventures II, which advanced to a 60.6 percent IRR from 15.8 percent one year earlier.

On the other end of the spectrum, the Tallwood III Annex fund continued to struggle.

Returns from the full list of 15 funds are available in the accompanying table.

Downloadable Data: Venture funds in CalPERS’ Sacramento Private Equity Partners portfolio

Photo of Calpers headquarters in Sacramento, California courtesy Reuters/Max Whittaker