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LP Scorecard: Mid-1990s vintage funds lead way for CalSTRS portfolio

Summit Partners, the Boston-based growth equity shop, has produced the top-performing fund, measured by IRR, for backer California State Teachers’ Retirement System—quite an accomplishment consider the pension fund has backed nearly 300 funds since the late 1980s.

The 1995-vintage Summit Ventures IV LP is ahead of the pack by a considerable amount, having produced a 103.77 percent IRR; CalSTRS has gotten out $220.2 million on $29.1 million drawn down by the fund into investments.In this issue’s scorecard, we take a look at the CalSTRS private equity portfolio and rank funds by IRR as of March 31. The top ten results are presented in the accompanying table.

Including Summit Ventures IV LP, four of the top ten funds date from the mid-1990’s. The vintage-1993 venture fund New Enterprise Associates VI LP ranks second, at a 65.5 percent IRR; the vintage-1996 New Enterprise VII LP ranks fourth, at a 63.7 percent IRR; and the 1997 Summit Subordinated Debt Fund II LP ranks fifth at a 55.85 IRR. Of the top 10, New Enterprise Associates VI LP has the highest cash-on-cash return, 8x, or 701.4 percent.

Overall, the CalSTERS private equity portfolio consists of $40.6 billion in committed money to over 278 active funds as of March 31. Of that committed total, sponsors have drawn down $32.4 billion and returned $27.7 billion. Since its inception in 1988, the CalSTRS private equity portfolio has posted an IRR of 11.54 percent.