The Indiana Public Retirement System has seen a nice upswing in cash distributions from venture funds minted during the early years of the past decade. But many funds from these difficult years of venture’s recovery still struggle to return invested capital.
The observation comes from INPRS’ most recent portfolio report, which shows the money manager holds 19 funds with vintages of 2001 to 2006. The majority—16—boasts investment multiples above one, according to the report dated March 2013. A smaller number—7—project returning 1.5x contributed capital or better, certainly a minimum measure for proclaiming hands-down success.
What stands out is that all but two of the funds have generated new capital distributions during 2012 and the first quarter of 2013. Several have made significant strides. The remaining two funds have not thrown off additional cash.
Among the most significant cash generators are two Bay Partners funds: Bay Partners X from 2001 and Bay Partners XI from 2005. Bay Partners X saw its distributions jump to $4.7 million from $325,000 over the period and has a 1.64x multiple, not bad for a bubble era fund. Distributions exceed contributed capital.
Bay Partners XI saw distributions more than double, but do not quite yet exceed invested capital. The fund’s multiple is 1.3x.
Another big gainer is Trinity Ventures IX from 2006. The fund hasn’t yet topped invested capital, but distributions rose smartly and the fund’s multiple is 1.36x.
Insight Venture Partners V’s distributions also rose respectably and now best invested capital. The fund has the best investment multiple of the bunch at 2.07x.
The two funds that didn’t increase distributions were Pacven Walden Ventures VI and Rho Ventures V.
The accompanying table lists the 19 funds with their commitment levels, contributed capital, investment multiples and distributions from March 2013 and January 2012.