Fund Performance: Top Venture Funds See Performance Pull Back

Several top venture funds saw a pull back in performance during the most recent reporting period, according to a CalPERS report that otherwise found gains in the pension fund’s self-directed venture portfolio.

The funds include the relatively recent vintage 2009 Khosla Ventures III and Insight Venture Partners VI from 2007. Also retreating were Insight V, New Enterprise Associates 12, Granite Global Ventures III and VantagePoint CleanTech Partners, according to a portfolio report from the California Public Employees’ Retirement System, through September 2012.

The funds are all top performers in the portfolio with IRRs solidly in the black.

Many of the funds at the bottom of the portfolio notched gains in their IRRs over the same period.

CalPERS has 24 venture funds and funds of funds in its self-directed private equity portfolio, according to a VCJ analysis of the report. (The money manager has separate portfolios handled by outside managers, such as Grove Street Advisors.)

The funds are largely concentrated in the 2005 to 2008 vintages and included an equal number of small and larger investment pools. Fourteen have positive IRRs and 10 have negative ones, according to the portfolio report. Eleven saw their IRRs improve in the 12 months from September 2011 and nine did not. Four do not have year-ago comparisons.

Also of note is that several funds are no longer in the portfolio, including Rockport Capital Partners II, Trinity Ventures IX and DFJ Element Fund I. These funds were listed in the September 2011 report and are not including in the more recent report.

The top performing fund in the group is the AACP India Venture Investors C, with a 26.5% IRR, followed by Khosla Ventures III, with a 22.4% IRR. Insight Venture Partners VI has a 20.2% IRR.

At the bottom of the list is NGEN II, with an IRR of -36.5%, followed by Aisling Capital III, with a -10% IRR.

The funds are listed in the accompany chart with their commitments, cash distributions and IRRs from September 2012 and 2011.