The Public Employees’ Retirement System of Nevada has stepped up its venture capital investing over the past couple of years with commitments to Battery Ventures, Canaan Partners and Technology Crossover Ventures.
Returns on these latest investments are obviously too difficult to predict, but older funds from these firms and others, including New Enterprise Associates, have done quite well.
The money manager holds 34 funds with vintages of 2004 to 2014. Fourteen, or 41 percent, were added since 2012. In addition to commitments to funds managed by Battery, Canaan and TCV, agreements were reached with Mayfield Fund, Summit Partners and Institutional Venture Partners.
Nevada PERS favors large and medium sized funds. A total of 13 of its funds, or more than one-third of the overall portfolio, are $900 million or greater in size. Another 14 funds range from $300 million to $700 million.
The LP has been an inconsistent investor in venture capital over the past decade. Commitments appear to come in bunches. The vintage year 2006 saw six investments. Five were made in 2008. Many other years have seen only one or two.
The portfolio’s top performer is Battery Ventures IX with an IRR of 32.6 percent. Battery Ventures VIII Side Fund also has done well, as has Summit Partners Venture Capital Fund II.
The accompanying table lists all 34 funds with their called capital, distributions and IRRs.