Analysis of SFERS Venture Portfolio Performance Amid Market Downturn

The San Francisco Employees’ Retirement System (SFERS) has recently released data on the performance of its venture capital portfolio, shedding light on the impact of the market downturn on VC fund performance. According to the data, SFERS’s venture portfolio recorded a -0.9% internal rate of return in 2023, a significant drop from the 48.8% IRR in 2021 and a -19.9% return in 2022.

While these numbers reflect the overall performance of the portfolio, including funds at different stages of their lifecycle, they indicate a downward trend in fund performance. Despite the challenges faced in recent years, SFERS remains optimistic about the future of venture capital, with signs pointing towards a potential recovery.

The data also highlights SFERS’s continued commitment to the asset class, with the pension fund making significant investments in top-tier venture capital firms. Despite the recent performance setbacks, SFERS has made new commitments to venture funds in 2023 and continues to see value in the long-term potential of the industry.

Overall, while the venture capital market may still be facing challenges, the data from SFERS suggests that the worst of the downturn’s effects may be behind us. With a diversified portfolio and a history of successful investments, SFERS remains confident in the resilience of the venture capital industry.