Fund Performance: University of California’s Most Improved Venture Funds

Investors at the University of California may be resting a bit easier these days. The performance of the UC venture portfolio has been improving—at least the performance of those mid-decade funds now in the key years of investment harvesting.

The university’s Regents holds 27 venture capital funds with vintages of 2004 to 2006. A total of 62% of the funds saw their IRRs rise in the school’s most recent portfolio report; 35% did not.

Not a bad record considering that all the funds lived through the financial turmoil of the past five years.

Some of the gains have been remarkable. The IRR of Novak Biddle Venture Partners V is up 1,325% from June 2011 to June 2012, the cut-off date for the most recent portfolio report. Granite Ventures II is up 130% and now boasts an IRR in the black instead of the red.

Other funds have been less successful. The IRR of BlueRun Ventures has dropped 59.5% while DCM’s fifth fund is off 46.5%, although they both funds still sport a positive overall IRR.

Overall, the performance of the 3-year-old portfolio is solid, if not spectacular. Nineteen of the funds had positive IRRs, as of June 2012, compared to 15 that were in the black in June 2011. Insight Venture Partners V Coinvestment Fund leads the pack with a 23.6% IRR. In second place is Insight Venture Partners V followed by Caduceus Private Investments III.

Listed in the accompanying chart are the 27 funds from the vintage years with their commitment levels, net asset values and IRRs from June 2012 and June 2011.

Also included is their performance change listed as a percentage.