A small portfolio of large-scale, mid-life venture funds is generating good results for New Mexico Public Employees Retirement Association.
Few LPs so deliberately favor large-sized funds. Four of the pension manager’s seven venture investments are with funds of $1 billion or greater, including two from New Enterprise Associates and one each from IVP and Technology Crossover Ventures. Two other funds from the portfolio attracted commitments of $600 million or more.
The results of the strategy speak for themselves. The portfolio’s vintages vary from 2007 to 2012, so gains remain on paper, but returns are solid from top to near bottom. IRRs range from above 50 percent to slightly more than 11 percent, according to a recent portfolio report.
Claiming the top spot in the portfolio is Institutional Venture Partners XIV, which posted an IRR of 50.43 percent as of September 2015, the report shows. The 2012 fund is well ahead of its nearest rival.
Still, Technology Crossover Ventures VII, in second place, boasted an IRR of 21.25 percent as of September and with substantial distributions.
New Enterprise Associates 14, also a 2012 fund, wasn’t far behind with an IRR of 18.4 percent, trailed only slightly by NEA’s previous fund.
The portfolio also includes a DFJ fund and a sub-$1 billion IVP fund.
The entire list of seven funds in available in the accompanying table with commitments, distributions and IRRs.