The $53.5bn pension would like to find a way to better measure the full workforces of potential investment managers, among other concerns.
Since launching its formal LP effort in 2016, Boulder, Colorado-based Foundry Group firm has backed dozens of emerging managers. These relationships have also helped the firm zero in on direct investments.
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.
LPs also discuss liquidity concerns and the denominator effect amid the pandemic and the economic slowdown.
A recession fueled by an ongoing pandemic has universities facing critical budget woes. With endowments feeling the heat, VCs are on course to see a very different fundraising environment later this year or in 2021.
The initiative has 46 founding signatories, including venture firms .406 Ventures, ForgePoint Capital and Insight Partners as well as LPs, such as Teacher Retirement System of Texas and CPP Investments.
Recent commitments include Los Angeles Fire and Police Pensions, IFC and Sun Hung Kai in Korea, among others.
Harvard Management Company has a $18bn allocation to private equity – including venture capital – and has brought ESG into its recently redrawn risk tolerance levels in recent years.
NAVs of VC portfolios may come down by 20 to 30 percent, a public pension LP estimates.
Emerging managers are where the organization hopes to see the most widespread adoption. Sister title Private Funds CFO spoke with some of the people who developed it as they hoped to spark debate.