Firms & Funds

Fund performance: Gains continue in CalPERS’ venture portfolio

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calpers
Calpers headquarters is seen in Sacramento, California, October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker (UNITED STATES) - RTXPWO1

The California Public Employees’ Retirement System’s self-directed venture portfolio continues to show improvements in performance with funds from Asia Alternatives Management, Clarus Ventures and GGV Capital gaining ground.

Aisling Capital III also advanced smartly during a recent reporting period.

CalPERS has complained in recent years about venture performance and vowed to largely duck out of the asset class. But the funds in its main self-directed portfolio have performed reasonably well since then.

In a recent report updating the portfolio to March 2014, returns from 16 of 23 venture funds advanced and six declined. Overall, 19 of the funds have positive IRRs and four don’t.

Gains were particularly strong at several Asia Alternatives Management funds, including the 2009 vintage AACP India Venture Investors C, where the March IRR jumped to 33.5 percent from 19 percent in June 2013. The IRR at AACP India Venture Investors A rose to 8.3 percent from -1.4 percent.

Clarus Lifesciences II, a 2008 vintage fund, posted an IRR of 19.8 percent in March, up from 6.5 percent in June. And Granite Global Ventures III from GGV posted an IRR of 19.5 percent compared with 12.1 percent in June.

Khosla Ventures III from 2009 held its ground with an IRR unchanged at 17.5 percent and Essex Woodlands Health Ventures VIII saw its performance advance.

The accompanying table lists the 23 funds with their commitment levels, distributions and IRRs from March 2014 and June 2013.