Fund performance: CalSTRS revs up its venture portfolio

For partners interested in adding a new LP to the roster, pay attention to this: The California State Teachers’ Retirement System added six new venture funds to its portfolio during 2011 and 2012.

On the list are funds from Sofinnova Ventures, Craton Equity Partners, GGV Capital, Shasta Ventures and New Enterprise Associates.

Perhaps the expansion is no surprise. CalSTRS’ portfolio from the last decade is quite respectable, with a number of heavy hitters. A total of 19 of its 34 venture funds with vintages of 2004 to 2012 are in the black, according to a recent portfolio report updated to September. Of the 14 that are not, six are so new—vintage years 2010 to 2012—that their negative IRRs are essentially meaningless.

The portfolio has a string of strong performers, though a number saw their IRRs retreat over the year for the period ended in September. At the top of the list is the 2007 Giza Ventures Fund V with an IRR of 39.57% and a huge performance gain over the 12 months.

BlueRun Ventures IV from 2008 takes second place and Institutional Venture Partners XII comes in third with IRRs of 26.82% and 26.6%, respectively. Both saw IRR declines over the period.

Solid performances also come from Summit Partners Venture Capital II-A and Sofinnova Venture Partners VII. The two funds have IRRs of 19.82% and 18.71%, respectively.

Other funds experiencing IRR declines over the 12 months include 2006 New Enterprise Associates 12 and Technology Crossover Ventures VII from 2007. The TCV VII IRR is now 1.56%.

Near the bottom of the list are troubled funds from NGEN Partners and Syncom Venture Partners, as well as Giza Ventures Fund IV from 2005, which has a -10.82% IRR.

Please find the full fund list in the accompanying chart along with commitment levels, distributions and IRRs from September 2012 and 2011.