The Invisible Investors that Drive Venture Capital

ACV. Based in Prequin report The Venture Capital Top 100.
  • Public pension funds (27%)
    These are workers’ pension funds regulated by the government whose objective is to capture money from workers so that they can accumulate a patrimony that will allow them to subsist during their retirement. These funds have an investment policy and have a diversified portfolio in different asset classes, one of them being Venture Capital. The main pension funds in the world are: CALPERS with USD$311.5bn of assets under management and 75 investments in Venture Capital funds, California State Teachers Retirement System with USD$192.2bn and 30 funds, New York State Common Retirement Fund with USD$178.6bn and 21 funds, New York State Teachers Retirement System with USD$109.5bn and 15 funds and Regents of the University of California USD$97.5bn in 30 funds. Pension funds in Mexico manage USD$236bn and the main ones are: XXI Banorte (USD$50.89bn), Citibanamex (USD$40bn), Profuturo (USD$37bn).
  • Private Equity Funds of Funds (19%)
    There are also private equity funds whose investment thesis is to invest in other fund managers. Thus they take exposure to different geographies and different types of assets. Among them Venture Capital. Some examples are: Partners Group with USD$57bn and 20 investments in VC funds, GCM with USD$45bn and 18, HarborVest Partners with USD$40bn and 45 investments. The Fund of Funds carried out such work in Mexico.
  • Private pension funds (15%)
    Most companies, especially large companies, have private pension funds for the benefit of their workers. Some examples are: Boeing Company Pension Fund with USD$56.3bn and 30 investments in Venture Capital funds, AT&T with USD$42.2 and 25, Lockheed Martin with USD$33.9 and 16.
  • Foundations (13%)
    Foundations are typically private entities whose objective is to promote development in a certain geography or sector. Some examples are: J.Paul Getty Trust with USD$6.7bn and 22 investments, MacArthur with USD$6bn and 34 investments, Rockefeller with USD$4.2bn and 31.
  • Government agencies (9%)
    Multilateral or government agencies also have a stake in the development within the VC ecosystem. Some of them are: International Finance Corporation (IFC) with USD$88.3bn and 44 funds, Netherlands Development Finance Company (FMO) with USD$9.6bn and 22, and Proparco with USD$5.4bn and 15 investments.
  • Endowment plan (5%)
    Endowments are funds donated to universities in order to support scholarships, professors’ salaries, etc. They make VC investments such as the University of Texas USD$39.4bn and 55 investments, the University of Michigan with USD$9.7bn and 78, and the University of Pennsylvania with USD$3.6bn and 20.
  • Insurance companies (4%)
    Insurance companies also diversify their capital by investing in VC funds. Such is the case of MetLife with USD$543bn and 40 investments in VC funds, LibertyMutual with USD$128bn and 31, and Minnesota Life with USD$37.2bn and 16.
  • Sovereign wealth funds (2%)
    Sovereign wealth funds or Sovereign Wealth Funds in English are state investment funds that manage the wealth of a government. They include: Alaska Permament Fund Corporation with USD$53.3bn and 37 investments, BPI France with USD$49.7 and 16 investments. In Mexico there is the Mexican oil fund for stabilization and development, which has USD$1bn.
  • Others (6%)
    Sometimes other types of investors such as successful entrepreneurs or businessmen, high net worth individuals (HNWI) and corporations often invest in VC fund managers. Their objective is to have exposure to Venture capital seeking attractive financial returns through innovation and technological disruption.

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ACV

ACV

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ACV is an international Corporate Venture Capital (CVC) fund investing globally in Startups & VC funds.