The California Public Employees' Retirement System (CalPERS), considered the largest pension fund in the US with $190 billion of assets under management, has reported on the problematic performances of venture capital funds over the past decade. CalPERS is one of the biggest suppliers of financing of Israel's venture capital funds.
CalPERS has invested $125 million in a range of Israeli venture capital funds including Carmel Ventures, Gemini Israel Funds, Jerusalem Venture Partners, Apax Partners Israel, Giza Venture Capital, Pitango Venture Capital, Markstone Capital Group, and Israel Seed Partners.
According to CalPERS report of funds launched a decade ago, Carmel Ventures continues to have performed best since 2000 with returns of 9.1% on investment with the value of investments growing 40%. Another fund on the verge of being in the black is Gemini's III Fund, which is breaking even.
On the negative side, Apax II Fund from 1999 has negative returns of 10.3%, while the value of its investments is down 30%. The worst performance of all has been by Israel Seed Partners IV Fund which has negative returns of 15% and has lost 50% of the value of its investment.
Published by Globes [online], Israel business news - www.globes-online.com - on September 13, 2009
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