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Fund Performance: JMI Equity Tops Hawaii ERS Scorecard

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Growth equity investor JMI Equity tops the $11.3 billion State of Hawaii Employees’ Retirement System, as of June 30, 2012.

The 2005 vintage JMI Equity Fund V posted a 3.52x multiple for the period, according to an anlysis of the Hawaii ERS report.

In looking at the top 10 venture capital growth equity firms for the state pension fund, the second-best investment multiple belongs to TA Associates, another growth-capital focused fund, and its 2000 vintage TA IX, which posted a multiple of 2.37x for the period.

Vintages in the state pension fund’s top 10 range from two 1998 funds—Oak Investment Partners VIII and New Enterprise Associates VIII—as well as a more recent Battery Ventures VIII Side Fund from 2008.

Hawaii’s state pension fund is committed to some 141 venture capital, growth equity, buyout and special situations funds with vintages ranging between 1997 and 2012. It is also committed to 16 secondary fund purchases. In October, the pension fund announced it would increase its target allocation to private equity from 6% to 7% in 2013.

Hawaii ERS has committed $1.1 billion to private equity funds generating an IRR of 7.55% for its entire portfolio. By category, buyouts and special situations took $710 million of total commitments, generating an overall IRR of 9.45%; venture capital and growth equity took $357.1 million commitments generating an IRR of 3.32%; and secondary purchases accounted for $38.8 million commitments, boosting the IRR figures to 16.05 percent.

Other venture and growth equity funds that Hawaii ERS has backed include ABS Capital Partners, Atlas Venture, Canaan Partners and Summit Partners.

Below is a top 10 ranking of the venture and growth fund managers, including commitments to and distributions from each fund to date.

10. Weston Presidio V

Vintage: 2005

Commitment: $2 million

Distributions: $844,074

Multiple: 1.49

9. Battery Ventures VIII

Vintage: 2007

Commitment: $1.4 million

Distributions: $353,824

Multiple: 1.51

8. M/C Venture Partners V

Vintage: 2000

Commitment: $6 million

Distributions: $8.5 million

Multiple: 1.6

7. New Enterprise Associates VIII

Vintage: 1998

Commitment: $7 million

Distributions: $10.6 million

Multiple: 1.65

6. Summit Ventures VI-B

Vintage: 2000

Commitment: $5 million

Distributions: $6.1 million

Multiple: 1.76

5. Canaan VII

Vintage: 2005

Commitment: $3.5 million

Distributions: $1.56 million

Multiple: 1.77

4. Oak Investment Partners VIII

Vintage: 1998

Commitment: $5 million

Distributions: $8.9 million

Multiple: 1.81

3. Battery Ventures VIII Side Fund

Vintage: 2008

Commitment: $630,000

Distributions: $318,079

Multiple: 1.83

2. TA IX

Vintage: 2000

Commitment: $8 million

Distributions: $17.5 million

Multiple: 2.37x

1. JMI Equity Fund V

Vintage: 2005

Commitment: $1.3 million

Distributions: $1.8 million

Multiple: 3.52x