Wednesday, February 4, 2009

U of Texas Investment Mangement Co (UTIMCO) reports on the value of their PE investments

Is a large investor in the Private Equity asset category. The folk at PEHub recently published UTIMCO's PE performance data here. In general, UTIMCO has posted reasonable numbers, certainly compared with the S&P index. One has to caveat these numbers as the returns embed a sizable number of investments that are not yet realized, and are subject to market vagaries.

You will see the data for such notable venture firms as Atlas Ventures (which missed its fund raising target), Austin Ventures, Spark (too early to opine), and Union Square (last fund seems to be a solid performer; latest is too new to comment on). I would expect that, in the near term, GP assessment of current value will trend down as the comparables have tanked. It is still too early for many of the funds recently raised to opine on the cash-on-cash or IRR numbers.

Incidentally, the publication of these numbers is precisely why many funds shy away from taking investments from public entities that have an obligation to report on the status of their PE investments. Certainly, in the venture capital business, one large 'win' can overnight change the outlook for an entire fund.

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