Fund performance: Menlo shows big gains in Washington State portfolio

A pair of funds from Menlo Ventures notched big performance gains in Washington State Investment Board’s venture portfolio, according to a recent fund performance report from the LP.

The two Menlo funds, along with funds from New Enterprise Associates and Austin Ventures, also generated substantial distributions during the 15 months ending in September of last year.

The funds are among 19 venture investments held in the portfolio with vintages of 2000 to 2014. The portfolio favors large pools of capital with about half raising more than $1 billion. (Not included in this story are funds in the WSIB’s Pathway and Invesco portfolios.)

Overall, the portfolio has mixed performance. About a third of the funds have negative IRRs, and another third are in the black, but with IRRs less than 6 percent.

The portfolio’s leader by far is Menlo Ventures XI, which as of September had an IRR of 81.6 percent, according to the report. That is up from -9.37 percent in June 2013. Over the period, the 2011 fund generated distributions of $19 million on invested capital of $70 million.

Menlo is an investor in Uber, but it is unclear which Menlo fund holds the investment.

Another Menlo fund gaining ground is Menlo Ventures X from 2006, which saw its IRR climb to 6.53 percent in September. That also was up from -2.17 percent in June 2013. The fund’s distributions leaped 57 percent over the period.

WSIB has earmarked $100 million for an investment in Menlo’s latest fund, Menlo Ventures XII, which the firm is raising.

Holding the number-two position in the portfolio is New Enterprise Associates 12, which had an IRR of 10.02 percent as of September. The 2006 fund’s distributions doubled over the period.

Austin Ventures VIII from 2001 also saw distributions jump.

The 19 funds are listed in the accompanying chart with commitments, distributions and IRRs.