Delaware Public Employees commits $80m to two venture funds

Pension system re-ups with Flagship Pioneering and IDG China Venture Capital.

Agreement

Delaware Public Employees’ Retirement System (DPERS) committed $80 million to venture capital, re-uping with its two long-term partners, Flagship Pioneering and IDG Capital.

During its February board meeting, the Dover, Delaware pension system announced its $50 million commitment to Flagship Pioneering’s seventh $1.1 billion fund, according to Private Equity International, an affiliate publication of Venture Capital Journal.

DPERS has been backing the Cambridge, Massachusetts-based life sciences venture firm since its first fund, which closed in 2000, according to data compiled by PEI.

Flagship Pioneer’s most notable investment is Moderna Therapeutics, a drug discovery company, which went public in December 2018 with a valuation of $7.6 billion. The Boston company has recently made headlines for running the first human trial of a potential covid-19 vaccine. 

Delaware Public Employees also agreed to commit $30 million to IDG Capital China Venture Capital. Beijing, China fund is targeting $688 billion for its sixth venture fund, according to a regulatory filing. The firm launched its fundraising efforts after China’s coronavirus outbreak began to slow down. 

In addition to DPERS, LPs in IDG Capital’s $588 million previous venture vehicle were Texas County and District Retirement System Public Pension Fund, The Leona M. and Harry B. Helmsley Charitable Trust and the University of Michigan, according to PEI data.

The pension fund’s 2019 venture and growth equity investments include $35 million towards Drive Capital’s $300 million fund, an undisclosed amount to Accel’s $2.5 billion pool of capital raised in March of 2019, a pledge of $30 million to Summit Partner’s $4.9 billion tenth growth equity fund and $15 million investment in Peppertree Capital Management’s $986 million eighth fund. 

Delaware Public Employees manages $11 billion in assets and has a 13.4 percent allocation to private equity, according to the latest data available to PEI.