Investor Performance

While the firm's venture capital and growth equity team favors re-ups with existing fund relationships, it spends a disproportionate amount of time with new managers to learn what's emerging in the market.

Following 2020’s record year, more and more capital is pouring into venture as 2021 is poised to set new records. But investments don’t seem to be performing as they once did.

The growth-equity and late-stage heavy portfolio of the $116bn LP cratered at the beginning of the pandemic, but it largely made up lost ground and then some by mid-year, with Sequoia Capital's recovery standing out.

Out of the dozens VC funds in California's LP portfolio, most advanced amid the pandemic and during the fiscal year ending June 30.

LPs’ fears of large markdowns in VC assets did not materialize. Valuations through Q2 are expected to either stay relatively flat or even increase, especially for late-stage focused managers.

The organization's venture portfolio is currently 23 percent of the overall private equity bucket, more than double its target of 10 percent.

A survey from NFX found that investors are worried about their portfolios and don't anticipate the economy bouncing back until at least April 2021.

NAVs of VC portfolios may come down by 20 to 30 percent, a public pension LP estimates.

LPs also discuss liquidity concerns and the denominator effect amid the pandemic and the economic slowdown.

CIO Jase Auby says Teacher Retirement System of Texas's private holdings are unlikely to decrease significantly once valuations catch up with the public markets.