The California Public Employees' Retirement System (CalPERS) financial report for the third quarter of 2009 shows that Israeli venture capital funds still have negative performance, even as funds raised in 1999-2000 are beginning to see returns on their investments.
CalPERS had $209 billion in assets under management at the end of September 2009, and is a major investor in Israeli venture capital funds, with investments in the past decade in Carmel Ventures, Gemini Israel Funds, Israel Seed Partners, Apax Partners Israel, Giza Venture Capital, and Pitango Venture Capital, as well as in private equity fund Markstone Capital Partners Group LLC. CalPERS' investments in these funds total $125 million.
The Carmel I Fund, raised in 2000, stands out with a positive multiple of 1.4 (on paper) on the money, giving an internal rate of return (IRR) of 8%.
On the other side of the equation, the Apax Israel II Fund, has a negative IRR of 30% (on paper), the Israel Seed IV Fund has a negative IRR of 50%, JVP has a negative IRR of 20%.
While the Pitango III Fund, raised in 2000, has a negative IRR of 50%, the Pitango IV Fund, raised in 2004, has a positive multiple of 1.1. The $50 million fund raised by Markstone in 2004, also has a positive multiple of 1.1.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010