The Washington State Investment Board is weighing a recommendation to commit up to $400 million combined to two new funds from Menlo Ventures.
The board is set to vote on the recommendation at its September 18 meeting, according to an advisory memo published by WSIB. The recommendation was made by Albourne, which serves as an investment consultant to the board.
Albourne recommends an investment of up to $175 million in Menlo Ventures XVII, an early-stage fund targeting $700 million, and an investment of up to $225 million in Menlo Inflection IV, a late-stage vehicle targeting $800 million.
“Menlo Ventures is the WSIB’s longest-standing private equity relationship,” the advisory states. “Since 1981, the board has committed over $1.8 billion across 17 Menlo Ventures funds, including a $225 million commitment to Menlo Ventures XVI in 2023.
“The proposed investments are included in the board-approved 2025 private equity annual plan and are consistent with the model portfolio.”
Menlo Ventures XVII is expected to invest between $8 million and $15 million in 30-40 seed and early-stage companies. Menlo Inflection IV plans to “collaborate with early-stage Menlo Ventures funds to identify late-stage venture investment opportunities, including high-performing current portfolio companies and category leaders in focus areas that have lower risk profiles and a shorter investment horizon than early-stage venture capital investments,” the advisory states.
Menlo, based in Menlo Park, California, submitted filings to the Securities and Exchange Commission for Fund XVII and Inflection IV on August 28. The filings list Venky Ganesan, Shawn Carolan and Matthew Murphy as the managing members of the general partner for both funds.
WSIB, which manages about $180 billion on behalf of 17 Washington state retirement and public funds, currently has about 29 percent of its assets allocated to private equity, above its target of 25 percent, according to data from affiliate title Buyouts.
