Oregon Insurance

Doug Breckel’s phone does not ring as before.

While the Internet boom of the late 1990, Breckel - Private Equity manages investments at the University of Washington - has received hundreds of calls from Venture Capital companies looking for him to invest some valuable UW - equipment.

Breckel Given the inclusion of $ 125 million in high-profile companies such as Battery Ventures, NEA, Oak Investment Partners and Sevin Rosen Funds, between 1998 and 2000.

But this year, Breckel, “said Art - their private equity holdings by about 15 percent of the capital of the foundation - investing less than $ 20 million venture capital fund. Accordingly, telephone calls from venture-capitalists - many of which burrowed in the trenches to try to revitalize their portfolio companies - were killed.

The University of Washington is like a large proportion of facilities across the country, limiting investments in private equity, amid uncertain economic times. The obligations of Venture-Capital Fund has decreased by 33 per cent in the fourth quarter of 2000, according to Venture Economics and the National Venture Capital Association.

And they should continue to fall this year, industry observers say.

The pension funds, insurance companies and foundations, the panel of the main strings for Venture Capital Funds are a success, like all others, too. And therefore, large financial institutions are limiting their exposure vis-à-vis Private Equity, with lots of cash collateral solely for venture capitalists, verwitterten economic slowdown in the past or the parties in their sixth or seventh Fund.

Some institutions are also preparing negative returns, something that was almost unknown two or three years.

While the UW’s Private equity participation is not yet in the red, Breckel recognizes that times are not as well as 18 months.

“Are we concerned? Clair,” said Breckel, he succeeded, UW-Private Equity Portfolio for the past seven years. “We do not want to lose more money than everyone else.”

The portfolio UW’s Drop recovery could be even more over the next three to four years as a funder of venture capital continues to write the value of their investment in the dot is not CMO and telecommunications companies.

“We have not really changed our point of view, that venture (capital) is a place, but we want long-term,” he added. “Venture Capital is very attractive, if you are working with top quartile of funds.

That thought was also money from other managers.

Bart Shirley, co-manages the private equity portfolio for a National Insurance, in Columbus, Ohio, said it still plans to invest $ 150 million this year in venture capital funds.

The insurance giant that has made its Private Equity Group in 1997 and is an investor in Kirkland-based OVP Venture Partners, has only 1 percent of the approximately $ 50 billion pledged in the field of venture capital portfolio Fund . Although Shirley said: “Our portfolio is down, and something,” it is not far to launch more investment.

“Technology and VCs almost hand in hand,” said Shirley. “So if you are stubborn on technology for the long term, a class that you have to play in”

Like the Art’s Breckel, Shirley has been a decrease in the number of Venture Capital Fund-tent money this year - before any partnerships for the first time in ETA. It expects that it be provided over 200 Venture Capital-places this year, against more than 300 in 2000.

“The environment of funds is certainly more difficult from a general partner” perspective, “he said.” Some ways to lower quality than we saw (last year) have certainly gone away. ”

Oregon State Treasurer Randall Edwards, manages $ 38 billion pension fund of State, has also seen a decline in fund-raising venture capital in activity this year.

But what is OK with Edwards, said the pension fund of the allocation of risk capital and private equity participations increased by 13 percent in recent quarters. Ideally, this number should be close to 10 percent, he said.

This does not mean that the State of Oregon, financial return, in addition to requests to save some $ 38 billion in total for the employment pension funds in venture capital.

“Our doors are open. We say no, no, “said Edwards.” We can only a little more slowly, because we are the border.

Anyway, that the pace is slower, the effects on-Venture Fund. Robert Nelsen, Managing Director at Arch Venture Partners, saw first-hand that if the increase in the funds of the company in the last five months.

Although 15 years of closure, $ 380 million financing this week, Arch encounter some roadblocks along the way. Many companies investors, he said, no more investments in venture capital funds, because they expect that the definition of the cycle to an end. Other institutions are simply afraid.

“Some partners were burned limited, and they are worried about what happened in the past two years,” said Nelsen. “They say, is now time for additional d ‘.