Last year was a good one for venture, but rarely does a venture capital portfolio improve as much as CalPERS’ Sacramento Private Equity Partners did.
All but two of the 15 venture funds in the portfolio advanced during the year ended in June, more than half by giant leaps, according to a recent California Public Employees’ Retirement System performance report. Few portfolios can boast a similar performance.
The Sacramento portfolio, managed by Oak Hill Investment Management, is made up of vintage 2007 to 2010 funds with an even distribution between early and late-stage strategies and a focus on mid-sized funds of $200 million to $750 million.
Several big name holdings have performed well: New Enterprise Associates 13 and Institutional Venture Partners XIII, for instance. But outstanding returns have come from Emergence Capital Partners II and OrbiMed Private Investments IV, both of which logged extraordinary gains through June 2014, the performance report shows.
Emergence Capital Partners II advanced to an IRR of 53.5 percent, from 36 percent a year earlier, and OrbiMed Private Investments IV jumped to an IRR of 52.9 percent from 18 percent.
Other funds logged astonishing performance gains of their own. Vintage 2007 Third Rock Ventures rose to an IRR of 25.1 percent as of June and vintage 2010 TauTona Partners climbed solidly out of the red to 13.8 percent. Third Rock Ventures II also had a nice gain.
At the bottom of the portfolio, Tallwood III Annex saw its performance sink.
All 15 funds are listed in the accompanying table with their commitments, distributions and IRRs.