Fund Performance: UTIMCO Takes Big Position in Cendana Capital

The University of Texas Investment Management Company pulled out its checkbook last summer, investing more than $560 million in new funds, including two venture capital funds.

The big winner in venture was Cendana Capital, which received a $60 million investment for its seed-focused Cendana Co-Investment Fund. The pension manager took 100% of the vehicle, according to UTIMCO’s most recent portfolio report dated August 2012.

UTIMCO also bought a stake in Roger Ehrenberg’s first fund, the $50 million 2010 vintage IA Ventures Strategies Fund I, during the three months from May, the date of its previous report, to August last year. It committed $4.5 million to the fund, according the August portfolio report.

Cendana Managing Partner Michael Kim declined to comment on UTIMCO’s investment. In the past, Kim has said he invests as a fund of funds in institutional seed funds. He operates two vehicles, the co-investment fund for UTIMCO and Cendana Capital for other LPs.

Cendana has so far committed capital to IA Ventures; Tim ConnorsPivotNorth Capital; Freestyle Capital, founded by Josh Felser and Dave Samuel; Manu Kumar’s K9 Ventures; Forerunner Ventures, founded by Kirsten Green; Jeff Clavier’s SoftTech VC; Founder Collective; and Lerer Ventures.

IA Ventures went on to raise a $105 million second fund last year, which also has UTIMCO as an investor.

The bad news for venture capitalists is that the rest of the money UTIMCO put to work last summer went outside of venture. The LP put $150 million in three buyout funds, including Cortec Group Fund V, $100 million in growth funds and $100 million in EnCap Investments’ new energy-focused EnCap Flatrock Midstream Fund II.

In the accompanying chart, we list the new UTIMCO investments along with commitment levels, their investment focus and UTIMCO’s ownership percentage.