Obama’s SBA Pick Helped Run Private Equity Fund With Some Less-Than-Stellar Results

Pro Publica reports:

When President-elect Barack Obama tapped Maine businesswoman Karen Gordon Mills to lead the Small Business Administration, he said she would give America's small businesses "a partner in Washington."

But the performance of Solera Capital, a private-equity firm where Mills, 55, was managing director from 2000 to 2007, might make some wonder if she's the partner they need.

Founded in 1999, Solera has raised about $250 million for its sole fund, much of it from public pensions, but has made meager payouts to investors thus far.

The giant California pension fund CalPERS has put more than $72 million into Solera. As of June 30, it had received just $102,345 in distributions. The Oregon Public Employees Retirement System (OPERS) has invested about $51 million and has gotten back less than $2 million.

Few other 2000 vintage funds held by CalPERS or OPERS have delivered so little bang for the buck, records show.

Imagine that.