Few portfolios better show the venture capital up-cycle than the one managed by the Texas County and District Retirement System.
Not only do all of the pension’s 16 funds with vintages of 2006 to 2011 have positive IRRs, but two-thirds have IRRs in the double digits, according to a recent portfolio report. A quarter has IRRs above 20 percent.
It is rare to see such consistent performance.
The portfolio favors large, brand-name funds. About half the funds are $900 million in size or larger, and another third are between $500 million and $750 million. GPs including OrbiMed Advisors, Technology Crossover Ventures, Khosla Ventures, New Enterprise Associates and Institutional Venture Partners.
The portfolio is led by OrbiMed Private Investments IV, a 2010 fund with an IRR of 47.13 percent, according to a report from the pension fund updating performance to September. Technology Crossover Ventures’ 2008 seventh fund is next in line with an IRR of 20.72 percent, as of September.
OrbiMed Private Investments III from 2007 follows close behind with an IRR of 20.59 percent, and Khosla Ventures IV from 2011 also is nipped at its heels with an IRR of 20.51 percent.
Strong results also come from NEA, IVP and Draper Fisher Jurvetson.
Legend Capital’s LC Fund V made an impressive gain in the first nine months of 2014, the report shows. However, Highland Capital Partners VIII from 2009 lost ground.
The 16 funds are listed in the accompanying table along with commitment levels, distributions and IRRs.