The latest exits of Israeli start-ups are not yet reflected in the returns of Israeli venture capital funds. This month's sales of Dune Networks Ltd. to Broadcom Corp. (Nasdaq: BRCM) and Optonol Ltd. to Alcon Inc. (NYSE: ACL), which ought to improve the returns of Pitango Venture Capital and Jerusalem Venture Partners (JVP), respectively, are not yet reflected in the California Public Employees' Retirement System (CalPERS) financial report for the second financial quarter of 2010, which ends in December 2009.
CalPERS' financial report for the second fiscal quarter shows almost no change in its investments in Israeli venture capital funds, compared with the preceding quarter. Over the past decade, CalPERS has invested $125 million in seven Israeli funds - Carmel Ventures, Apax Partners Israel, Giza Venture Capital, Gemini Israel Funds, Israel Seed Partners, Pitango, and JVP - as well as in Markstone Capital Partners Group LLC.
According to CalPERS, the Carmel fund raised in 2000 has a positive return on investment of 9%, with a potential multiple of 40%. The Gemini III Fund, raised in 2000, has reached break-even. The Pitango IV Fund, raised in 2004, has a return of 5%
However, the Apax Israel fund raised in 1999 has a negative return of 10.3%, and a paper write-off of 30%. The Pitango III Fund has a negative return of 11%, and a paper write-off of 50%, and the JVP IV Fund has a negative return of 4%, and a paper write-off of 20%.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2009
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