Clearstone Venture Partners’ Clearstone Venture Partners I-B was the top performer in the California Public Employees’ Retirement System’s funds-of-funds California Emerging Ventures portfolio, posting an IRR of 154.7% and a multiple of 2.8x, according to the state pension fund’s most recent report, as of March 31, 2012. The Clearstone fund raised $105 million in total commitments in 1999.
In second place comes the 2007 vintage Avalon Ventures VIII, also backed by the above funds-of-funds and which posted an IRR of 89.4% and investment multiple of 4.3x. Avalon Ventures’ eighth fund focuses on early-stage companies in biotechnology, wireless communications and Web media applications. It raised $150 million in 2008.
Drilling down into CalPERS’ most recent PE Program Fund Performance Review, as of March 31, 2012, VCJ took a look at the top five investments by IRR through the state pension fund’s funds-of-funds vehicles, which span vintages from 1991 to 2012. The five top performing venture funds within this portfolio span vintages 1999 through 2008.
CalPERS’ family of funds-of-funds focus on venture capital as well as buyout, emerging markets, cleantech, energy and special situations funds. The California Emerging Ventures program was created in 1998 when CalPERS conducted a search for an advisor to manage a program to expand its access to venture. Grove Street Advisors manages the program.
5. Flagship Ventures Fund 2007
Vintage: 2007
IRR: 36.7
Multiple: 2.1x
CalPERS’ Fund-of-funds invested: California Emerging Ventures I, II, III and IV
Vintages: 1999, 2000, 2001 and 2006
Funds-of-funds IRRs: 4%; 3.8%; 6.9% and 12.6%
Funds-of-funds Multiples: 1.2x; 1.2x; 1,3x and 1.3x
4. GSR Ventures III
Vintage: 2008
IRR: 46%
Multiple: 1.8x
CalPERS’ Fund-of-funds invested: 57 Stars Global Opportunities Fund, LLC; 57 Stars Global
Opportunities Fund 2 LLC
Vintages: 2007, 2009
Funds-of-funds IRRs: 8.7 per cent, 5%
Funds-of-funds Multiples: 1.2x, 1x
3. Foundry Venture Capital 2007, L.P.
Vintage: 2007
IRR: 57.6%
Multiple: 3.2x
CalPERS’ Fund-of-funds invested: California Emerging Ventures I, II, III and IV
Vintages: 1999, 2000, 2001 and 2006
Funds-of-funds IRRs: 4%; 3.8%; 6.9% and 12.6%
Funds-of-funds Multiples: 1.2x; 1.2x; 1,3x and 1.3x
2. Avalon Ventures VIII, L.P.
Vintage: 2007
IRR: 89.4%
Multiple: 4.3x
CalPERS’ Funds-of-funds invested: California Emerging Ventures I, II, III and IV
Vintages: 1999, 2000, 2001 and 2006
Funds-of-funds IRRs: 4%; 3.8%; 6.9% and 12.6%
Funds-of-funds Multiples: 1.2x; 1.2x; 1,3x and 1.3x
1. Clearstone Venture Partners I-B, L.P.
Vintage: 1999
IRR: 154.7%
Multiple: 2.8x
CalPERS’ Funds-of-funds invested: California Emerging Ventures I, II, III and IV
Vintages: 1999, 2000, 2001 and 2006
Funds-of-funds IRRs: 4%; 3.8%; 6.9% and 12.6%
Funds-of-funds Multiples: 1.2x; 1.2x; 1,3x and 1.3x