Ohio’s $150 million state-backed fund for venture-capital investments is showing stronger returns and has attracted more than $1 billion investment to the state, but still is performing below expectations.
The Ohio Capital Fund LLC has generated an 8.7 percent annualized return from 2006 through the end of last year, fund managers on Thursday told the Ohio Venture Capital Authority.
By comparison, the median return for venture capital funds over the period was 9.9 percent, with the top quartile generating a 16.9 percent return, according to data provided by Fort Washington Capital Partners Group, the Cincinnati firm that manages the state’s fund of funds.
“(Our return) is essentially in line with what you would expect at this point with a pretty geographically constrained fund,” Fort Washington’s Tarik Adam told the state agency.
The fund was formed in 2006 to promote investment in seed and early stage companies in Ohio. It has invested $150 million in 27 venture capital funds, which are required to make at least half of their investments in Ohio companies.
Four have been liquidated because portfolio companies were sold.
Six have yet to kick back any money.
“We still think there’s a good amount of value, but it’s something to keep an eye on,” Adam said of Chrysalis Ventures III, a Louisville, Kentucky-based fund that has an unrealized value of $9.6 million. “Overall, we’re very pleased with the portfolio.”
In a milestone noted by Fort Washington managers, the Ohio Capital Fund has helped attract more than $1 billion investment into 80 seed and early stage companies.