AGENDA BOARD OF FIRE AND POLICE PENSION COMMISSIONERS. August 3, :30 a.m.

Transcription

1 AGENDA BOARD OF FIRE AND POLICE PENSION COMMISSIONERS August 3, :30 a.m. Sam Diannitto Boardroom Los Angeles Fire and Police Pensions Building 701 East 3rd Street, Suite 400 Los Angeles, CA Commissioner Diannitto will participate telephonically from 4612 El Reposo Drive, Los Angeles, CA An opportunity for the public to address the Board or Committee about any item on today s agenda for which there has been no previous opportunity for public comment will be provided before or during consideration of the item. Members of the public who wish to speak on any item on today s agenda are requested to complete a speaker card for each item they wish to address, and present the completed card(s) to the commission executive assistant. Speaker cards are available at the commission executive assistant s desk. In compliance with Government Code Section , non-exempt writings that are distributed to a majority or all of the Board or applicable Committee of the Board in advance of their meetings may be viewed at the office of the Los Angeles Fire and Police Pension System (LAFPP), located at 701 East 3 rd Street, 2 nd Floor, Los Angeles, California 90013, or by clicking on LAFPP s website at or at the scheduled meeting. Non-exempt writings that are distributed to the Board or Committee at a scheduled meeting may be viewed at that meeting. In addition, if you would like a copy of any record related to an item on the agenda, please contact the commission executive assistant, at (213) or by at rhonda.ketay@lafpp.com. Sign language interpreters, communication access real-time transcription, assistive listening devices, or other auxiliary aids and/or services may be provided upon request. To ensure availability, you are advised to make your request at least 72 hours prior to the meeting you wish to attend. Due to difficulties in securing sign language interpreters, five or more business days notice is strongly recommended. For additional information, please contact the Department of Fire and Police Pensions, (213) voice or (213) TDD. A. ITEMS FOR BOARD ACTION 1. APPROVAL TO ISSUE A REQUEST FOR PROPOSAL FOR INDEPENDENT MEDICAL EXAM SERVICES AND RECORD REVIEWS AND POSSIBLE BOARD ACTION 2. HEADQUARTER FACILITY PROJECT CLOSE OUT REPORT AND POSSIBLE BOARD ACTION B. REPORTS TO THE BOARD 1. PRESENTATION BY ACTIVE COMMODITY GLOBAL EQUITY MANAGER MELLON CAPITAL MANAGEMENT CORPORATION

2 2. PRESENTATION BY ACTIVE COMMODITY GLOBAL EQUITY MANAGER KBI GLOBAL INVESTORS LIMITED 3. SEMI-ANNUAL REVIEW OF CORE AND SPECIALIZED MANAGER PRIVATE EQUITY PROGRAMS AND THE COMMODITIES ALLOCATION TO PRIVATE EQUITY BY PORTFOLIO ADVISORS 4. FAIRVIEW CAPITAL PORTFOLIO UPDATE ANNUAL MEMBER SURVEY SUMMARY OF FINDINGS 6. Has any Board Member made any expenditure to influence State legislative or administrative action? 7 Miscellaneous correspondence from money managers, consultants, etc. Received and Filed. 8. General Manager s Report a. Benefits Actions approved by General Manager on July 20, 2017 b. Other business relating to Department operations C. CONSENT ITEMS 1. Findings of Fact Luke J. Butnick Tier 5 D. CONSIDERATION OF FUTURE AGENDA ITEMS E. GENERAL PUBLIC COMMENT ON MATTERS WITHIN THE BOARD S JURISDICTION F. DISABILITY CASES Alternative 1 Retired Police Officer II Marc M. Tessier. Mr. Tessier will represent himself. Alternative 2 Retired Police Officer II Tracy L. Andres. Ms. Andres will be represented by Thomas J. Wicke, Esq. of Lewis, Marenstein, Wicke, Sherwin and Lee. G. CLOSED SESSION 1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION TO CONSIDER THE PURCHASE OF TWO (2) PARTICULAR, SPECIFIC INVESTMENTS AND POSSIBLE BOARD ACTION August 3,

3 2. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION TO CONSIDER THE PURCHASE OF ONE (1) PARTICULAR, SPECIFIC INVESTMENT AND POSSIBLE BOARD ACTION August 3,

4 DEPARTMENT OF FIRE AND POLICE PENSIONS 701 E. 3rd Street, Suite 200 Los Angeles, CA (213) REPORT TO THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS DATE: AUGUST 3, 2017 ITEM: A.1 FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: APPROVAL TO ISSUE A REQUEST FOR PROPOSAL FOR INDEPENDENT MEDICAL EXAM SERVICES AND RECORD REVIEWS AND POSSIBLE BOARD ACTION RECOMMENDATION That the Board authorize the General Manager to issue a Request for Proposal (RFP) for independent medical exam services and record reviews. BACKGROUND Pursuant to City Charter and Administrative Code requirements, LAFPP members who file for a disability pension must be examined by and a written report thereon rendered by a minimum of three (3) licensed and practicing physicians (other than the member s treating physician or Worker s Compensation doctor). The physicians also review the member s prior medical records in preparing their report. Additionally, except in those instances in which the Board has determined that, due to the nature of the disability, no purpose would be served in having periodic medical examinations to determine whether a retired member is still disabled, a retired member may be required to undergo periodic medical examinations. In regard to survivor benefit applications when LAFPP members die while still active, a doctor s report is required before a Board hearing can be conducted to determine whether the deceased member s death was service-connected. Per Board Operating Policies and Procedures Section 3.7.B., the deceased member s medical records must be reviewed by a minimum of one (1) qualified physician to establish an informed/objective/evidence-based medical opinion. DISCUSSION Staff currently utilizes Havura Enterprises LLC (Havura) and contracts with local panel physicians on an as-needed basis to perform exams, review medical records, and write reports in accordance with LAFPP guidelines and standards. Staff uses these doctors reports as the basis to prepare recommendations to the Board. Operating out of Arizona, Havura has maintained a panel of physicians who provide disability medical evaluation services (exams, record reviews, report writing) to LAFPP since These services have historically been provided on a non-contractual basis, which has provided staff with a degree of

5 flexibility. However, in the past three years Havura has reduced their staff and is currently only providing services to LAFPP. Over time the available panel of doctors has diminished thus limiting the available appointments and increasing the distance that members must travel to see a doctor. Contracting directly with local panel physicians is also problematic. Staff must conduct research to locate qualified physicians that are willing to adhere to City contracting requirements. Staff believes there is value to identifying one or more companies to provide a larger pool of physicians within a range of specialties. By contracting with one or more companies, doctors could be closer to member residences, costs can potentially be reduced through negotiation and new member services could be utilized. On March 22, 2017, staff released a Request for Information (RFI) to: 1) explore the range of services that are currently provided by industry firms that specialize in performing independent medical examinations and record reviews; 2) learn about the latest industry best practices; and 3) consider optional resources to improve member services and reduce claims processing time. As a result of the RFI, a total of seven (7) respondents, both local and out-of-state, submitted information in April From the information gathered, Staff will be able to develop a comprehensive RFP to identify firms that offer: (1) access to a broader panel of physicians in a variety of specialties, i.e., orthopedics, neurology, internal medicine, cardiology, psychiatry, etc.; (2) appointment scheduling services; (3) offer transcription services and report preparation using LAFPPdefined medical evaluation criteria; and (4) offer patient transportation services, if needed. Upon approval by the Board, the RFP will be published on our website and the City s website (Business Assistance Virtual Network - BAVN). Staff will also notify the seven (7) firms who responded to the RFI and mail notices to firms in similar industries. Staff anticipates the evaluation of responses, cost information and a recommendation for contract award to be presented to the Board no later than November BUDGET The budget includes a total of $330,000 for disability medical exam services and record reviews. POLICY No policy changes are recommended. This report was prepared by: Kyle Susswain, Manager Disability Pensions Section RPC:JS:GM:KS:LT Board Report Page 2 August 3, 2017

6 DEPARTMENT OF FIRE AND POLICE PENSIONS 701 E 3rd Street, Suite 200 Los Angeles, CA (213) REPORT TO THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS DATE: AUGUST 3, 2017 ITEM: A.2 FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: HEADQUARTER FACILITY PROJECT CLOSE-OUT REPORT AND POSSIBLE BOARD ACTION RECOMMENDATION That the Board receive and file the Close-Out Report on the Headquarters Building. DISCUSSION In December 2012, the Board authorized Sentinel Real Estate Corporation, one of the Board s separate account real estate managers, to enter into a contract to purchase The Neptune Building. Subsequently in April 2013, the Board approved the purchase of the building for $12.8 million. The escrow closed on July 24, 2013 at a final purchase price of $12,730,000 plus closing costs. This purchase completed the search for a headquarters building that spanned several years. The Neptune Building is a 54,000 square foot four-story office building that was constructed in It is located at 701 E. 3 rd Street on the Northeast corner of E. 3 rd Street and Alameda Street. Staff currently occupies floors 2 4 and will continue leasing the 1 st floor suites to generate revenue. The initial building purchase included a non-adjacent parking lot with twenty spaces that is located on E. 3 rd Street, approximately sixty feet east of the building. The parking lot adjacent to the Neptune Building was purchased in January 2015 which doubled the available parking spaces and allows staff, commissioners, and members to park directly adjacent to the building. BUDGET The approved project budget totaled $22,936,718 and included the purchase of the building, new furniture, building security, technology upgrades and construction related costs. The construction related costs included project management fees, demolition costs, Leadership in Energy and Environmental Design (LEED) related costs, first floor lobby and store front enhancements, and roof deck. Since the purchase was completed, the Board has considered four reports that provided the status of the project and authorized additional funding as follows: 1) July 17, 2014 The Board authorized a total project budget of $19,179,086 and an additional $352,000 for Technology Upgrades that had been planned, but were deferred by management to coincide with the relocation to the Neptune Building. 2) July 16, 2015 The Board authorized an additional $2,300,815 for Capital Building Expenditures and Tenant Improvements. At that time, staff expected the construction to be

7 completed in mid-december, and relocation was expected to be completed in late December 2015 or early January The General Manager updated the Board on various delays during Board Meetings as part of the General Manager s Report. 3) December 17, 2015 The Board authorized an additional $1,004,817 for relocation costs, removal of old cubicle furniture, new appliances, and a move consultant to help manage the relocation. The scope of the project also increased with the addition of exterior lighting to enhance security and reconfiguration of the 1 st floor lobby to accommodate a security guard. This additional amount was partly offset with $780,000 in projected savings within the department s administrative budget. 4) July 21, 2016 The Board approved a one-year extension until December 2017 for the existing contract with Haworth, Inc. under the U.S. Communities Government Purchasing Alliance Contract and authorized an additional $100,000 for any furniture needs that may arise. The approved project budget by Major Project Cost Category is reflected in the table below. Please note, this budget excluded additional parking needs. Major Project Cost Category Approved 7/17/2014 Approved 7/16/2015 Approved 12/17/2015 Approved 7/21/2016 TOTAL Building Purchase $ 12,800,000 $ - $ - $ - $ 12,800,000 Base Building Capital Requirements $ 1,500,000 $ 587,327 $ 591,367 $ - $ 2,678,694 Tenant Improvements (Floors 2-4) $ 4,879,086 $ 1,713,488 $ 413,450 $ 100,000 $ 7,106,024 TOTAL APPROVED BY BOARD $ 19,179,086 $ 2,300,815 $ 1,004,817 $ 100,000 $ 22,584,718 Technology Upgrades $ 352,000 $ - $ - $ - $ 22,936,718 The actual costs of the project which also includes the project management fees, demolition costs, and purchase of the parking lot totaled $25,990, and are reflected in the table below: ITEMS TOTAL COSTS Building Purchase $12,730, Project Management Fees $161, Building Improvements $7,069, Testing and Inspection $63, Roof Deck $947, Moving Costs $43, New Furniture (Haworth and Office Depot) $1,093, Salvage Services $58, Mural Painting Services $11, TOTALS $22,179, Parking Lot Purchase $3,811, GRAND TOTAL $25,990, Board Report Page 2 August 3, 2017

8 As a real estate investment, the acquisition and subsequent capital and tenant improvements have added value to the real estate portfolio. As of October 2016, CBRE, Inc. appraised the market value of the property at $33.3 million, which is approximately 28.1 percent more than the amount invested into the building to date. Additionally, this purchase is expected to reduce LAFPP administrative expenses over the long term as the department is no longer paying to lease office space. LEED GOLD CERTIFICATION In October 2016, the Neptune Building was awarded the U.S. Green Building Council s LEED Gold Certification for Design and Construction. To achieve LEED Gold, the building is evaluated in the five green design categories: sustainable sites, water efficiency, energy and atmosphere, materials and resources, and indoor environmental quality and the construction project gains points according to its green compliance. This is a significant accomplishment as fewer than twenty percent of projects receive this designation. It also aligns with Mayor Garcetti s Sustainable City plan since it will help reduce operating costs in the future and benefit the environment. SCHEDULE Construction and tenant improvements for the Neptune Building began in June 2015 and were completed in March The staff relocation took place immediately after the completion of tenant improvements, and the first day of operations was March 21, The roof deck construction was initially postponed because heavy rains were expected during construction, and because we did not want the roof deck construction to further delay the completion of the tenant improvements. The roof deck construction also began later than anticipated due to revisions in the plan submittals and issues finalizing the permit process. The weather then periodically delayed the construction progress. The roof deck was completed in early July MURAL In addition, a new mural was commissioned as part of the Neptune Building renovation. While the mural that was originally on the building was significant, it had been in place for several years and many felt its imagery was not appropriate for our staff or members. To commission the artwork, Staff issued a Request for Proposal to various mural artists for an aesthetic that aligned closer with LAFPP and for designs that had a potential to obtain sponsors to offset the costs. The selected mural artist, Hueman, had the best concept and design, and was among the least expensive bidders. Her mural titled Bloom was completed in May 2017 and is a tribute to Joel Bloom who was a strong advocate for the Arts District community, and was known as the Unofficial Mayor for the Arts District. The mural depicts a bouquet of flowers blooming and breathing with movement, creating a living wall symbolizing the vibrant arts community that continues to grow. BUDGET No impact at this time. The building and parking lot acquisitions and construction costs are reflected as capital assets in the audited Financial Statements and are being depreciated pursuant to the applicable Internal Revenue Service depreciation schedule. Board Report Page 3 August 3, 2017

9 POLICY As recommended, there are no policy changes and it is consistent with the existing Governance policies of the department. This report was prepared by: Jennifer Shimatsu, Management Assistant Administrative Operations Division RPC:WSR:JMS Board Report Page 4 August 3, 2017

10 Los Angeles August 2017 Semi-Annual Review of Core & Specialized Manager Private Equity Programs & the Commodities Allocation to Private Equity

11 Los Angeles Agenda Advisory Mandate Private Equity Portfolio Performance Review (as of December 31, 2016) Core & Specialized Manager Programs Commodities Allocation to Private Equity Performance Review (as of December 31, 2016) Strategic Plan Update (as of June 30, 2017) Discussion on Investment Process Disclosure Statement Page 2

12 Los Angeles Advisory Mandate Page 3

13 Los Angeles Advisory Mandate Portfolio Advisors ( PA ) serves as a separate account, non-discretionary advisor overseeing two private equity programs for LAFPP, the Core & Specialized Manager Programs, and a Commodities Allocation to Private Equity LAFPP s Private Equity Portfolio is comprised of the Core and Specialized Manager Programs PA is committing a combined total of approximately $425 to $475 million per annum for these two programs LAFPP s Commodities Allocation to Private Equity is separate from its Private Equity Portfolio PA has been targeting commitments of $50 million per annum for this allocation Responsibilities include: Page 4 Working closely with Staff on all matters relating to LAFPP s Private Equity Portfolio and Commodities Allocation to PE Preparing Strategic and Tactical Plans Performing commitment pacing studies Maintaining broad market presence to source new investments Conducting thorough due diligence on primary fund investments Meeting 10 to 12 times a year with LAFPP s Board Topics include investment recommendations and educational sessions Negotiating terms and conditions of agreements Reviewing documentation for fund closing Managing portfolio investments Private Equity Portfolio currently has 341 funds (as of June 30, 2017) & Commodities Allocation to PE has 10 funds (as of June 30, 2017) Providing ongoing advice with respect to the management of the investments (e.g., key-man events, amendment reviews, extensions, etc.) Attending annual meetings and designated advisory committee meetings of partnerships Loading and maintaining daily cash flow and quarterly investment data on the entire portfolio of investments Providing quarterly reports on the portfolio Providing Staff training and on-line access to PRIVILEGe

14 Los Angeles LA Fire & Police Annual Commitment Summary ($ s in millions) ,2 Total Private Equity Exposure Target - Core & Specialized Manager Programs 9% 9% 9% 9%/10% 10% 10% 10%/12% Target Commitment Pace $275-$325 $275-$325 $275-$325 $275-$350 $300-$350 $300-$350 $ Approved/Closed Commitments $265 $262 $246 $280 $360 $338 $436 $2,187 Approved/Closed Commitments - # Sector Weightings - % of Approved Commitments Buyout 47% 50% 32% 68% 46% 37% 56% 48% Special Situations 23% 31% 39% 18% 24% 27% 22% 26% Venture Capital & Growth Equity 30% 19% 28% 14% 31% 36% 22% 26% 100% 100% 100% 100% 100% 100% 100% 100% Specialized Managers - # MBE, WBE, LGBT & Disabled Veteran Specialized Managers - # Commodities Allocation to Private Equity - Target Commitment Pace $50 $50 $50 $50 $50 Approved/Closed Commitments $44 $25 $50 $55 $45 5 $219 Approved/Closed Commitments - # (1) 2016 Statistics reflect approved commitments through 12/31/2016 (2) LAFPP s Board approved a change in the Plan s PE exposure target to 12% effective 6/16/2016 (3) Committed an additional $15 million to Palladium IV. Original Commitment made in 2012 (4) Committed an additional $15 million to Gridiron III. Original Commitment made in 2015 (5) Subsequent to year end, LAFPP closed on a tenth commitment to Resource Capital Fund VII for $20 million that was approved by the Board in October 2016 Page 5

15 Page 6 Los Angeles Absolute & Relative Performance PA Fund Recommendations Since April 2010, PA has recommended 125 funds to LAFPP that have generated a Return Multiple and Net IRR of 1.34x and 14.2%, respectively $'s in millions Vintage Year # of Funds 1 Commitments 2 Contributions Distributions ARV 3 Total Return Value 4 Multiple 5 Net IRR $102.5 $86.8 $48.3 $91.7 $ x 15.4% $329.4 $286.1 $116.7 $301.1 $ x 12.7% $329.0 $267.6 $92.4 $314.9 $ x 20.1% $202.0 $134.9 $7.6 $158.8 $ x 12.3% $335.0 $198.2 $7.0 $222.4 $ x 10.4% $354.3 $138.4 $1.1 $142.1 $ % $505.5 $46.6 $0.1 $43.2 $43.3 NA NA Total 122 $2,157.8 $1,158.7 $273.2 $1,274.1 $1, x 14.2% Relative LAFPP Manager Performance at the time of commitment ~58% were 1 st Quartile ~88% were 1 st or 2 nd Quartile (top half) 88% 12% Performance of Historical Funds Sponsored by Portfolio Fund Managers 7 Quartiles % # of Funds 1st 57.9% 183 2nd 30.1% 95 3rd 8.9% 28 4th 3.1% 10 Total 100.0% 316 (1) Number of funds listed in the 1 st table above is based on the vintage year assigned to each fund by the GP or PA, whereas the number of funds on page 5 is based on approved/closed funds (2) Table reflects closed commitments through 12/31/2016 (3) ARV - Adjusted Reported Value. Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity (4) Total Value: Cumulative Distributions + ARV 3 (5) Return Multiple: (Cumulative Distributions + ARV 3 ) / Cumulative Contributions (including fees outside of commitment) (6) Net IRR Since Inception as of 12/31/2016 (7) These identified fund managers had previously sponsored 316 funds that could be benchmarked against Thomson One

16 Los Angeles Private Equity Portfolio Performance Review Core and Specialized Manager Programs (as of December 31, 2016) Page 7

17 Highlights Portfolio Los Angeles Aggregate Portfolio is comprised of $4,045.1 million of commitments to 324 (as of December 31, 2016) partnerships managed by 154 different sponsors since inception Core Portfolio is comprised of $3,646.3 million of commitments to 277 partnerships managed by 127 different sponsors Specialized Manager Portfolio is comprised of $399.0 million of commitments to 47 partnerships managed by 39 sponsors During 2016, $436.3 million of commitments to 23 new partnerships were approved for the Aggregate Portfolio. This compares to: $337.5 million of commitments to 21 new partnerships in 2015 $360 million of commitments to 18 new partnerships in 2014 Increase in 2016 commitment pace reflects the Board approved increase in the Private Equity Exposure Target to 12% from 10% on June 16, 2016 Performance Aggregate Portfolio was generating a net IRR since inception of 10.9% and a 1.50x total return multiple on invested capital Core Portfolio was generating a net IRR since inception of 10.9% (first cash flow 9/1996) and a 1.52x total return multiple on invested capital Specialized Manager Portfolio was generating a net IRR since inception of 10.9% (first cash flow 12/2007) and a 1.39x total return multiple on invested capital From a one-, three-, and five-year perspective, LAFPP s Aggregate Portfolio lagged the cash flow weighted S&P 500 Index bps benchmark as a result of strong stock market performance over the last few years. Additionally, LAFPP s 10 year and ITD performance, which are the more relevant measures of performance, were slightly below the benchmark for each time period by 130 and 60 bps, respectively Diversification Aggregate Portfolio is well diversified across geographies, sectors and vintage years and has exposure to multiple industries and over 3,000 companies Cash Flows Similar to 2012, 2013, 2014 and 2015 distributions continued to outpace contributions (positive net cash flow) through 2016 Page 8

18 Los Angeles Aggregate Portfolio Summary In June 2016, LAFPP s Board approved an increase in the Plan s private equity exposure target to 12% from 10% As of December 31, 2016, the Aggregate Portfolio s ARV 1 was $1,835.3 million, approximately 9.4% of total Plan assets Aggregate Portfolio Private Equity Exposure Summary $ s in millions Total Plan Market Value $19,513.9 Private Equity Exposure Target (%) 12% ± 3% Private Equity Exposure Target ($) $2,341.7 Current Private Equity Exposure (%) 9.4% ARV 1 $1,835.3 (1) ARV - Adjusted Reported Value. Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity Page 9

19 Los Angeles Aggregate Portfolio Summary (continued) LAFPP has committed $4,045.1 million to 324 partnerships managed by 154 sponsors since the inception of its Private Equity Portfolio in 1996 Contributions to and distributions from the Aggregate Portfolio since inception totaled $2,972.0 million and $2,632.6 million, respectively Net IRR Since Inception and Return Multiple 1 of 10.9% and 1.50x, respectively, were up slightly year over year (1) LAFPP considers a fund inactive if there is a $0 NAV (2) ARV - Adjusted Reported Value. Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity (3) Total Value: Cumulative Distributions + ARV 2 (4) Return Multiple: (Cumulative Distributions + ARV 2 ) / Cumulative Contributions (including fees outside of commitment) Page 10 Aggregate Portfolio Snapshot $ s in millions Portfolio Since Inception 12/31/16 12/31/15 Net Change Partnerships Active Inactive Sponsors Commitments $4,045.1 $3,617.0 $428.1 Contributions $2,972.0 $2,690.7 $281.3 Remaining Commitments $1,103.2 $954.5 $148.7 Distributions $2,632.6 $2,340.3 $292.3 ARV 2 $1,835.3 $1,643.6 $191.7 Total Value 3 $4,467.9 $3,983.9 $484.0 Return Multiple x 1.48x 0.02x Net IRR Since Inception 10.9% 10.8% 0.1%

20 Los Angeles Core & Specialized Manager Portfolio Summaries Core Portfolio accounts for 90.1% of the total commitments and 83.8% of total market value ( ARV ) 2 in the Aggregate Portfolio Based on Net IRR Since Inception, Core Portfolio performance was up by 10 bps and Specialized Manager Portfolio performance was down 70 bps year over year Distributions outpaced contributions in both the Core and Specialized Portfolios Core Portfolio Snapshot $ s in millions Portfolio Since Inception 12/31/16 12/31/15 Net Change Partnerships Active Inactive Sponsors Commitments $3,646.3 $3,225.6 $420.7 Contributions $2,661.7 $2,418.8 $242.9 Remaining Commitments $1,017.7 $838.3 $179.4 Distributions $2,493.1 $2,240.9 $252.2 ARV 2 $1,538.5 $1,366.7 $171.8 Total Value 3 $4,031.6 $3,607.6 $424.0 Return Multiple x 1.49x 0.03x Net IRR Since Inception % 10.8% 0.1% Specialized Manager Portfolio Snapshot $ s in millions Portfolio Since Inception 12/31/16 12/31/15 Net Change Partnerships Active Inactive Sponsors Commitments $399.0 $391.5 $7.5 Contributions $310.3 $271.9 $38.4 Remaining Commitments $85.6 $116.2 ($30.6) Distributions $139.5 $99.4 $40.1 ARV 2 $288.4 $276.9 $11.5 Total Value 3 $428.0 $376.3 $51.7 Return Multiple x 1.37x 0.02x Net IRR Since Inception % 11.6% (0.7%) (1) LAFPP considers a fund inactive if there is a $0 NAV (2) ARV - Adjusted Reported Value. Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity (3) Total Value: Cumulative Distributions + ARV 2 (4) Return Multiple: (Cumulative Distributions + ARV 2 ) / Cumulative Contributions (including fees outside of commitment) (5) The first cash flows for the Core and Specialized Portfolios were 9/1996 and 12/2007, respectively Page 11

21 Los Angeles 2016 Commitments In 2016, LAFPP added to its Private Equity Portfolio $436.3 million of commitments to 23 new partnerships 2016 Commitments ($ s in Millions) Closing New or Existing Investment Commitment Demand for Partnership Target Fund Size Date Relationship Strategy Amount Offering 1 2/2/2016 DFJ Ventures XII $325 Existing Venture Capital $10 Oversubscribed 2/5/2016 Advent International GPE VIII $12,000 Existing Buyout $20 Oversubscribed 2/19/2016 Thoma Bravo Fund XII $7,000 Existing Buyout $30 Oversubscribed 2/19/2016 TCV IX $2,450 Existing Venture Capital $10 Oversubscribed 2/29/2016 Green Equity Investors VII $7,500 Existing Buyout $25 Oversubscribed 3/8/2016 Spark V $350 Existing Venture Capital $2.5 Oversubscribed 3/11/2016 Vista Equity Partners VI $8,000 Existing Buyout $40 Oversubscribed 4/7/2016 Spark Capital Growth Fund II $500 Existing Venture Capital $15 Oversubscribed 5/11/2016 Longitude Venture Partners III $450 Existing Venture Capital $15 Oversubscribed 5/18/2016 Lightyear IV $950 Existing Buyout $25 Not Oversubscribed 5/19/2016 Vista Foundation Fund III $2,500 Existing Buyout $15 Oversubscribed 6/13/2016 Stepstone Secondary Opportunities Fund III $750 Existing Special Situations $25 Not Oversubscribed 6/22/2016 DFJ Growth 2016 $500 Existing Venture Capital $15 Oversubscribed 7/13/2016 Polaris Venture Partners VIII $400 Existing Venture Capital $20 Fundraising 3 8/5/2016 ABRY Heritage Partners $525 Existing Buyout $10 Oversubscribed 9/9/2016 Gridiron Capital Fund III $750 Existing Buyout $15 Oversubscribed 9/28/2016 BC European Capital X $4,211 Existing Buyout $39.3 Fundraising 10/4/2016 Lone Star X $6,000 New Special Situations $40.0 Oversubscribed 11/22/2016 Bain Double Impact Fund (SM 2 ) $250 Existing Buyout $7.5 Fundraising 3 12/16/2016 Incline Equity IV $500 Existing Buyout $12 Oversubscribed 12/31/2016 Platinum IV $6,500 Existing Special Situations $20 Oversubscribed 1/19/2017 Abry Senior Equity V $1,050 New Special Situations $10 Oversubscribed 5/12/2017 Defy Partners I (SM 2 ) $125 New Venture Capital $7.5 Fundraising 3 Not Closed Astra Partners I (SM 2 ) $250 New Buyout $7.5 Fundraising Average $2,660 Total $436.3 (1) An oversubscribed fund means there is more investor demand for a fund than the manager of the fund is willing to take. An oversubscribed offering typically reflects investors desire to invest and view that a manager will achieve top quartile returns. This view is based on investors reviewing past performance and the current offering (2) SM Specialized Manager Fund (3) Subsequent to year end, Polaris VIII has closed on $435 million, Bain Double Impact has closed on $390 million and Defy has closed on $140 million of commitments Page 12

22 Los Angeles Comparative Returns From a 1-, 3-, and 5-year perspective, LAFPP s Aggregate Portfolio lagged the S&P 500 Index +400 bps benchmark 1. LAFPP s 10-year and ITD performance lagged the benchmark by 130 and 60 bps, respectively 25.0 Across-Period Performance Comparative Returns as of December 31, 2016 Aggregate Net IRR % Returns S&P bps Core Net IRR Specialized Manager Net IRR Year 3 Year 5 Year 10 Year ITD (1) With the exception of the hypothetical final cash flow, the cash weighted return for the S&P bps index assumes the same inception to date net cash flow stream that was used in calculating the returns for the Aggregate Portfolio. The hypothetical final cash flow/valuation at 12/31/2016 reflects the amount of appreciation or depreciation that the index experienced from inception to date (2) 1-, 3-, 5- and 10- year IRRs ( Across Period returns) are calculated using the previous periods ending value as the calculations initial cash inflow. The across period IRR represents the implied discount rate that will make the net present value of the stream of cash flows sum to zero (3) ITD : Inception-to-Date Net Internal Rate of Return as of 12/31/2016 Page 13

23 Los Angeles Portfolio Diversification 1 Aggregate Portfolio is well diversified across sectors, geographies and industries. It has exposure to over 3,000 companies with approximately 89% exposure to private companies and 11% to public companies Buyout 47.0% Venture Capital & Growth Equity 29.0% U.S. 79.4% International 20.6% Special Situations 24.0% Page 14 Real Estate 1.3% Financial Services 12.8% Services 16.4% Secondary 0.1% Energy 5.6% Other 0.4% Computer/ Electronics 25.3% Communications 4.3% Consumer Products 6.1% Private 88.9% Industrial Fund of Products Funds Medical/ 13.5% 1.7% Transportation/ Health Logistics 9.8% 2.7% (1) All Charts are based on Reported Value: Represents reported value as most recently reported by the General Partners as of 12/31/2016 Public 11.1%

24 Los Angeles Portfolio Performance 1 Aggregate Portfolio grouped into vintage year buckets Mature ( ), Maturing ( ) and Developing ( ) Vintage Years LTM 2 Contributions ITD 2 Contributions LTM 2 Distributions $ s in millions ITD 2 Distributions ARV 3 1 Year IRR 3 Year IRR 5 Year IRR 10 Year IRR Return Multiple as of 12/31/15 Return Multiple as of 12/31/16 Net IRR 4 as of 12/31/15 Net IRR 4 as of 12/31/16 Mature ( ) Maturing ( ) Developing ( ) Total Portfolio $0.2 $757.0 $16.9 $1,125.2 $43.2 (4.2%) (0.3%) 9.2% 9.5% 1.55x 1.55x 9.9% 9.8% $5.2 $950.0 $149.6 $1,161.8 $ % 9.7% 14.1% 11.4% 1.63x 1.70x 11.5% 11.6% $275.9 $1,265.0 $125.8 $345.6 $1, % 13.6% 14.1% 13.2% 1.28x 1.34x 13.5% 13.2% $281.3 $2,972.0 $292.3 $2,632.6 $1, % 11.3% 13.7% 11.4% 1.48x 1.50x 10.8% 10.9% (1) All data presented as of 12/31/2016, unless otherwise stated. (2) LTM : Last Twelve Months, ITD : Inception-to-Date (3) ARV Adjusted Reported Value: Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity through 12/31/2016 (4) Net IRR Since Inception Page 15

25 Los Angeles Sector Performance Buyout Sector, the Aggregate Portfolio s largest exposure at 46.9%, has performed well with a net IRR since inception of 12.5% Venture Capital & Growth Equity Sector, the Aggregate Portfolio s second largest exposure at 29.4%, has generated a net IRR since inception of 7.3% Venture Capital & Growth Equity Sector has generated performance of 11.7% during PA s tenure Special Situations, the Aggregate Portfolio s third largest exposure at 23.7%, has performed well with a net IRR since inception of 10.7% Sector Commitments % of Total Commitments ARV 1 % of ARV 1 Return Multiple 2 Net IRR 3 $ s in millions Buyout $2, % $ % 1.60x 12.5% Special Situations $1, % $ % 1.44x 10.7% Venture Capital & Growth Equity $ % $ % 1.35x 7.3% Total Portfolio $4, % $1, % 1.50x 10.9% (1) ARV - Adjusted Reported Value. Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity (2) Return Multiple: (Cumulative Distributions + ARV 1 ) / Cumulative Contributions (including fees outside of commitment) (3) Net IRR Since Inception as of 12/31/2016 Page 16

26 Los Angeles Performance by Sub-Sector Strategy Investment Strategy Capital Committed Paid-In Capital Percentage Called $ s in millions Capital Distributed Percentage Distributed Adjusted Reported Value 1 Net IRR 2 Buyout $2,061.9 $1, % $1, % $ % Large $612.3 $ % $ % $ % Mid Market $1,449.6 $1, % $ % $ % Special Situations $1,065.3 $ % $ % $ % Distressed Debt & Restructuring $650.7 $ % $ % $ % Mezzanine $72.6 $ % $ % $ % Multi-Strategy & Other $222.5 $ % $ % $ % Secondary $119.5 $ % $ % $ % Venture Capital & Growth Equity $917.9 $ % $ % $ % $267.2 $264.1 MM MM $246.0 MM Early Stage $118.8 $ % $ % $ % Late Stage $111.0 $ % $ % $ % Multi-Stage $379.2 $ % $ % $ % Growth $308.9 $ % $ % $ % Total Portfolio $4,045.1 $2, % $2, % $1, % $280.0 MM (1) Adjusted Reported Value: Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity (2) Net IRR Since Inception as of 12/31/2016 Page 17

27 Los Angeles Performance by Sub-Sector Strategy Investment Strategy 1 Year IRR 3 Year IRR 5 Year IRR 10 Year IRR Net IRR 1 Buyout 16.2% 13.6% 16.5% 12.9% 12.5% Large 19.7% 13.6% 18.2% 11.4% 13.1% Mid Market 15.1% 13.6% 15.7% 13.9% 12.1% Special Situations 19.5% 7.0% 9.8% 10.0% 10.7% Distressed Debt & Restructuring 25.0% 10.6% 13.6% 11.3% 12.0% Mezzanine 0.3% 6.2% 8.4% 12.7% 12.6% Multi-Strategy & Other 19.1% 1.8% 4.1% 7.0% 7.8% Secondary (0.9%) 2.6% 7.7% 8.1% 9.7% Venture Capital & Growth Equity 4.7% 11.6% 12.7% 9.3% 7.3% $267.2 $264.1 MM MM $246.0 MM Early Stage (1.1%) 6.9% 9.9% 6.9% 4.4% Late Stage (1.8%) (7.2%) (1.6%) 2.7% 0.9% Multi-Stage 3.9% 15.5% 15.7% 9.3% 8.5% Growth 7.3% 12.1% 13.0% 12.6% 10.2% Total Portfolio 13.5% 11.3% 13.7% 11.4% 10.9% $280.0 MM (1) Net IRR Since Inception as of 12/31/2016 Page 18

28 Los Angeles Vintage Year Performance Aggregate Portfolio performance exceeded the Cambridge Associates Benchmark median returns for 12 of the 18 reported vintage years and exceeded the top quartile returns for 2 of the 18 reported vintage years (1) ARV - Adjusted Reported Value. Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity (2) Return Multiple: (Cumulative Distributions + ARV 1 ) / Cumulative Contributions (including fees outside of commitment) (3) Net IRR Since Inception as of 12/31/2016 (4) Weighted benchmark was calculated from the product of the percent drawn in each sector within each vintage year in LAFPP s portfolio multiplied by the sector-specific Cambridge Associates Benchmark returns. Same methodology was used for the Total Portfolio Page 19 Vintage Year Commitments % of Total ARV 1 % of Total Return Multiple 2 Net IRR 3 Median Weighted Benchmark 4 Top Quartile Weighted Benchmark 4 $ s in millions 1996 $16.5 0% $0.1 0% 1.95x 22.2% 13.0% 29.0% 1997 $65.2 2% $1.4 0% 1.75x 18.1% 15.3% 36.0% 1998 $ % $1.3 0% 1.40x 7.3% 8.6% 17.6% 1999 $ % $1.6 0% 1.32x 5.1% 6.2% 13.4% 2000 $ % $10.0 1% 1.44x 7.8% 9.8% 16.5% 2001 $59.1 1% $4.9 0% 2.08x 21.4% 15.7% 25.2% 2002 $11.3 0% $1.3 0% 2.44x 33.1% 20.3% 31.0% 2003 $50.3 1% $6.9 0% 1.66x 11.7% 15.3% 24.3% 2004 $75.0 2% $15.7 1% 1.59x 11.5% 9.1% 17.1% 2005 $ % $34.6 2% 1.52x 7.6% 6.9% 12.5% 2006 $ % $31.9 2% 1.43x 6.5% 7.9% 12.6% 2007 $ % $ % 1.72x 12.9% 9.3% 14.5% 2008 $ % $ % 1.85x 16.0% 10.9% 16.7% 2009 $65.5 2% $50.9 3% 1.85x 15.4% 13.7% 20.2% 2010 $ % $ % 1.43x 10.7% 12.4% 19.3% 2011 $ % $ % 1.47x 13.0% 10.8% 17.6% 2012 $ % $ % 1.52x 20.1% 12.4% 18.0% 2013 $ % $ % 1.23x 12.3% 9.8% 19.0% 2014 $ % $ % NM NM NM NM 2015 $ % $ % NM NM NM NM 2016 $ % $43.3 2% NM NM NM NM Total Portfolio $4, % $1, % 1.50x 10.9% 9.0% 17.1%

29 Los Angeles Five Largest Sponsors by Total Exposure Top five sponsors by total exposure account for 16% of the Aggregate Portfolio s total commitments and 19% of the total exposure 1 Five Largest Sponsors by Total Exposure 1 $ s in millions Sponsor # of Funds Total Commitments % of Total Total Exposure 1 % of Total Return Multiple 2 Net IRR 3 ABRY Partners Incorporated 6 $ % $ % 1.38x 13.6% Vista Equity Partners 5 $ % $ % 1.63x 26.6% Insight Venture Associates 5 $ % $ % 1.39x 12.7% Thoma Bravo 4 $ % $95.5 3% 2.13x 40.7% Ares Corporate Opportunities 6 $ % $86.0 3% 1.81x 15.0% 26 $ % $ % 1.67x 18.9% (1) Total Exposure is equal to the reported value as most recently reported by the General Partners plus remaining commitment (2) Return Multiple: (Cumulative Distributions + Reported Value) / Cumulative Contributions (including fees outside of commitment) (3) Net IRR Since Inception as of 12/31/2016 Page 20

30 Los Angeles Aggregate Portfolio Cash Flow Summary Cumulative contributions and distributions totaled $2,972.0 million and $2,632.6 million, respectively Aggregate Portfolio s total value is $4,467.9 million as of December 31, 2016 Annual Cash Flows ($ s in millions) $ Millions $1,000 $800 $600 $400 $200 $4,500 4,467.9 $4,000 $3,500 $2,972.0 $3,000 $2,632.6 $2,500 $2,000 $1,500 $281.3 $292.3 $1,000 $500 Cumulative & Total Value ($ s in millions) $0 $0 Contributions By Year Distributions By Year Total Value Cumulative Contributions Cumulative Distributions Page 21

31 Los Angeles Annual Net Cash Flow Summary 2016 marked the fifth consecutive year in which the Aggregate Portfolio s distributions outpaced contributions (positive net cash flow) With the increase in the exposure target and commitment pace in 2013 and again in 2016, it is likely the Portfolio will revert to a negative net cash flow profile in the next two to three years Contributions Distributions Net Cash Flow $ s in millions 1996 ($1.1) $0.0 ($1.1) 1997 ($11.1) $0.2 ($10.9) 1998 ($39.7) $2.8 ($36.9) 1999 ($94.2) $14.2 ($80.0) 2000 ($125.2) $64.4 ($60.8) 2001 ($68.8) $27.8 ($41.0) 2002 ($58.4) $24.9 ($33.5) 2003 ($62.4) $50.4 ($12.0) 2004 ($105.1) $99.1 ($6.0) 2005 ($105.0) $122.1 $ ($116.7) $133.9 $ ($141.1) $172.6 $31.5 $ ($205.8) $66.1 $264.1 ($139.7) MM MM $ ($103.2) $34.5 MM ($68.7) 2010 ($200.2) $138.7 ($61.5) 2011 ($222.0) $159.6 ($62.4) 2012 ($251.0) $265.2 $ ($193.6) $281.4 $ ($287.4) $345.2 $ ($298.6) $337.0 $ ($281.3) $292.3 $11.0 Total Portfolio ($2,972.0) $2,632.6 ($339.4) $280.0 MM Page 22

32 Los Angeles Commodities Allocation to Private Equity Performance Review (as of December 31, 2016) Page 23

33 Los Angeles Commodities Allocation to PE - Summary As of December 31, 2016, LAFPP has closed commitments totaling $193.8 million to 9 partnerships managed by 5 sponsors Contributions to and distributions from the Portfolio since inception totaled $100.9 million and $13.4 million, respectively Net IRR and Return Multiple 5 of 12.3% and 1.16x, respectively, were up significantly year over year Eight of the 9 funds are generating positive performance Aggregate Portfolio Snapshot $ s in millions Portfolio Since Inception 12/31/16 12/31/15 Net Change Partnerships Active Inactive Sponsors Commitments $193.8 $173.8 $20.0 Contributions $100.9 $53.5 $47.4 Remaining Commitments $93.1 $120.4 ($27.3) Distributions $13.4 $3.0 $10.4 ARV 3 $103.6 $49.4 $54.2 Total Value 4 $117.0 $52.4 $64.6 Return Multiple x 0.98x 0.18x Net IRR Since Inception 12.3% (2.0%) 14.3% (1) Subsequent to year end, LAFPP closed on a tenth commitment to Resource Capital Fund VII for $20 million that was approved in October 2016 (2) LAFPP considers a fund inactive if there is a $0 NAV (3) ARV - Adjusted Reported Value. Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity (4) Total Value: Cumulative Distributions + ARV 3 (5) Return Multiple: (Cumulative Distributions + ARV 3 ) / Cumulative Contributions (including fees outside of commitment) Page 24

34 Los Angeles Commodities Allocation to PE Diversification 1 Portfolio is still very young, however, it is performing well and becoming more diversified. Additionally, it is expected to remain predominately US-based Oil & Gas 50.5% Timber 21.0% Agriculture 19.7% Other 6.6% Metals & Mining 2.2% % % % % % % U.S. 94.1% Int'l 5.9% (1) All Charts are based on Reported Value: Represents reported value as most recently reported by the General Partners as of December 31, 2016 Page 25

35 Los Angeles Commodities Commitments Manager Investment $ s in millions Status Strategy Commitments 2012 Apollo Natural Resource Partners, LP Existing Commodity Multi-strategy $15.0 EnCap Energy IX, LP New Oil and Gas $18.8 NGP Natural Resources X, LP Existing Oil and Gas $ Total: $43.8 NGP Agribusiness Follow-on Fund, LP Existing Agribusiness and Food Processing $ Total: $25.0 Molpus Woodlands Fund IV, LP New Timber $25.0 NGP Natural Resources XI, LP Existing Oil and Gas $ Total: $50.0 EnCap Energy X, LP Existing Oil and Gas $30.0 Apollo Natural Resource Partners II, LP Existing Commodity Multi-strategy $ Total: $55.0 Tillridge Global Agribusiness Partners II, LP New Agribusiness and Food Processing $20.0 Resource Capital Fund VII, LP 1 New Metals & Mining $ Below is a schedule of the 10 approved commitments to the Commodities Portfolio Cumulative (1) Subsequent to year end, LAFPP closed on Resource Capital Fund VII for $20 million that was approved in October 2016 Page Total: $ Total: $0.0 Grand Total: $218.8

36 Los Angeles Strategic Plan Update As of June 30, 2017 Page 27

37 Los Angeles Private Equity Portfolio LAFPP began investing in Private Equity in 1996 with a 3% exposure target and commitments totaling $18.1 million for that year Since the Private Equity Portfolio s inception, LAFPP has approved $4,329.4 million in commitments to 341 partnerships managed by 162 sponsors as of June 30, 2017 Plan assets have grown to $20,151.7 million at March 31, 2017 from $7,685.6 million at October 1, 1996 As of March 31, 2017, ARV 1 was $1,807.1 million, approximately 9.0% of total Plan assets Soft target of approximately 10% of each year s annual commitment pace for Specialized Managers $'s in millions $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 LAFPP s Cumulative Commitments Inception (1996) 1 st Half % 5% 10% 9% 10% 12% 14% 12% 10% 8% 6% 4% 2% PE Exposure Target 2 (%) $0 0% (1) ARV - Adjusted Reported Value. Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity (2) LAFPP s Board approved a change in the Plan s PE exposure target to 12% effective 6/16/2016 Page 28 LAFPP's Cumulative Commitments ($) PE Exposure Target (%)

38 Los Angeles Commitment Pace Before 2010, the Private Equity Portfolio s commitment pace was very inconsistent. The reason for this inconsistency was the Board s actions/decisions to turn the private equity investment program on and off It is difficult to market-time private equity performance. As a result, PA has recommended a consistent annual commitment pace since the inception of its Advisory Mandate in 2010 to optimize the Private Equity Portfolio s return potential By maintaining a regular pace of commitments over multiple years, LAFPP will avoid over-exposure to high-priced markets and under-exposure to more attractive pricing environments. Additionally, a consistent commitment pace over time will reduce volatility in future cash flows $'s in millions $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 LAFPP s Annual Commitments Inception (1996) 1 st Half % 5% 10% 9% 10% 12% 14% 12% 10% 8% 6% 4% 2% 0% PE Exposure Target 1 (%) Page 29 LAFPP's Commitments ($) PE Exposure Target (%) (1) LAFPP s Board approved a change in the Plan s PE exposure target to 12% effective 6/16/2016

39 Los Angeles 2017 Commitments In the first half of 2017, LAFPP s Board approved $258.5 million of commitments to 14 new partnerships 2017 Commitments ($ s in Millions) Closing Date Partnership Target Fund Size New or Existing Relationship Investment Strategy Commitment Amount Demand for Offering 1 1/25/2017 Greycroft Growth II (SM 2,3 ) $200 New Venture Capital $5 Oversubscribed 2/1/2017 SG Growth Partners IV $750 Existing Venture Capital $15 Oversubscribed 2/7/2017 Argand Capital Partners (SM 2,3 ) $500 New Buyout $5 Fundraising 3/3/2017 Centana Growth (SM 2,3 ) $200 New Venture Capital $5 Oversubscribed 3/6/2017 EnCap Energy Partners XI $6,500 Existing Special Situations $40 Oversubscribed 3/31/2017 Oak HC/FT II (SM 2,4 ) $500 Existing Venture Capital $10 Oversubscribed 3/31/2017 Silver Lake Partners V $12,500 Existing Buyout $36 Oversubscribed 4/7/2017 New Enterprise Associates 16 $3,000 Existing Venture Capital $20 Oversubscribed 5/31/2017 CVC Partners VII $13,333 Existing Buyout $25 Oversubscribed 5/31/2017 Glendon Opportunities Fund II $2,000 New Special Situations $25 Oversubscribed Not Closed P4G Capital Partners (SM 2,4 ) $200 New Buyout $7.5 Fundraising Not Closed Palladium Equity Partners V $1,500 Existing Buyout $25 Fundraising Not Closed Canaan XI $750 Existing Venture $20 Fundraising Not Closed Insight Venture Partners X $5,000 Existing Venture $20 Fundraising Average $3,572 Total $258.5 (1) An oversubscribed fund means there is more investor demand for a fund than the manager of the fund is willing to take. An oversubscribed offering typically reflects investors desire to invest and view that a manager will achieve top quartile returns. This view is based on investors reviewing past performance and the current offering (2) SM Specialized Manager Fund (3) SM 2 Fund recommended by Fairview Capital Partners Inc. (4) SM 2 Fund recommended by Portfolio Advisors LLC Page 30

40 Los Angeles 2017 Guidelines 12% 1 private equity exposure target $425 to $475 million commitment pace Soft target of approximately 10% of annual commitment pace for Specialized Managers Chart below represents LAFPP s current sector exposures and Portfolio Advisors recommended optimal range for each sector LAFPP Portfolio (12/31/2016) Sectors Aggregate Portfolio Total Exposure 2 Optimal Range Buyouts 48% 40-60% Middle Market 37% 30-40% Large 11% 10-20% Special Situations 26% 15-40% Distressed Debt & Restructuring 17% 15-20% Mezzanine 1% 0-5% Multi-Strategy & Other 5% 5-10% Secondary 2% 0-5% Venture Capital & Growth Equity 26% 15-35% Early Stage 3% % Multi-Stage 10% 5-15% Late Stage 2% % Growth 11% 5-15% (1) LAFPP s Board approved a change in the Plan s PE exposure target to 12% effective 6/16/2016 (2) Total Exposure: Equal to the reported value as most recently reported by the General Partners plus remaining commitment Page 31

41 Los Angeles 2017 Objectives Continue to work towards 12% 1 private equity exposure target Commit $425 to $475 million for the Private Equity Portfolio Soft target of approximately 10% of annual commitment pace for Specialized Managers Provide LAFPP with access to top-tier sponsors, both existing relationships and new relationships Emphasize middle market buyout managers Selectively invest in large buyout sponsors Emphasize middle market and lower middle market distressed debt for control sponsors Opportunistically invest in mezzanine and secondary funds Selectively invest in venture capital sponsors Selectively invest in European and Asian sponsors PA typically targets International exposure of 15% to 35% with an emphasis on Europe and Asia, and little to no exposure to less proven markets Selectively invest in Specialized Managers First-, second- or third-time institutional funds for a given manager; Funds with a stated target size of less than or equal to approximately $500 million; Managers of funds that are owned at the General Partner level by one or more minorities, women, LGBT and/or disabled veterans; Funds that target companies which offer demographically-focused products and services to minorities and women; and, Funds that have a specialized strategy such as investing in companies located in California or Los Angeles Emphasize diversification and investment manager selection (1) LAFPP s Board approved a change in the Plan s PE exposure target to 12% effective 6/16/2016 Page 32

42 Los Angeles Commodities Allocation to Private Equity 2017 Guidelines Maintain exposure targets of up to 50% oil & gas and 50% other, which primarily consists of agriculture, metals & mining and timber 2017 Objectives Commit the remaining $30 million of allocation to 1 or 2 funds focused on agriculture, metals & mining and / or timber funds Emphasize investment manager selection Page 33

43 Los Angeles Outlook for Remainder of 2017 For the Core Program, PA anticipates seeking approval from the Board for potentially 5 or 6 more commitments before year end For the Specialized Manager Program, PA anticipates seeking approval from the Board for 3 commitments before year end For the Commodities Allocation to Private Equity, PA anticipates seeking approval from the Board for 1 or 2 commitments before year end For the Specialized Manager Program, Fairview anticipates seeking approval from the Board for potentially 3 commitments before year end Page 34

44 Los Angeles Discussion on Specialized Manager Process Page 35

45 Los Angeles Specialized Manager Sourcing PA proactively sources new investment opportunities with Specialized Managers in the following categories Page 36 First, second or third institutional fund Target fund size of (approximately) < $500 million Unique investment objectives Managers of funds that are owned at the General Partner level by one or more minorities, women, LGBT and/or disabled veterans Funds that target companies which offer demographically-focused products and services to minorities and women; and, Funds that have a specialized strategy such as investing in companies located in California or Los Angeles PA professionals have attended over 40 Specialized Manager conferences in the last five years (sample list below) Annual Women s Private Equity Summit Buyouts East* CALPERS Diversity Forum Chicago Buyouts ConsortiumEAST* ConsortiumWEST Emerging Manager Connect* Grosvenor Small & Emerging Manager Conference IMI (Investment Management Institute) NAIC Annual Meeting & Convention New York Buyouts NYSTERS MWBE Conference *Denotes a conference where a PA professional was either a keynote speaker or panel participant Opus Connect GP LP Emerging Manager Event Partner Connect East* Partner Connect Midwest* Partner Connect Southwest* Partner Connect Webinar* TRS & ERS Emerging Manager Conference

46 Los Angeles Specialized Manager Sourcing Results Since September 2013, Portfolio Advisors has been in dialogue with approximately 375 distinct fund managers representing potential fits with Specialized Manager profile More than 350 calls / meetings with approximately 175 new managers 15 under serious evaluation 2 in advanced dialogue / due diligence Approximately 225 deferred or not recommended at this time Since the $100 million mandate was awarded to Portfolio Advisors in September of 2016, LAFPP s Board has approved 4 new funds recommended by PA totaling $32.5 million in commitments Page 37

47 Los Angeles Portfolio Advisors-Specialized Manager Commitments Since PA was hired in April 2010, commitments totaling $254 million have been approved to 31 funds (VY s ) managed by 29 Specialized Managers Of these commitments, $164 million (~65%) has been committed to 21 funds (~68%) managed by 19 First, Second or Third Target Fund Size Minority/Woman/Disabled Veteran/LGBT* California Specialized Cumulative $ s in millions Institutional Fund $500.0 Ownership** Office Investments Commitments Commitments Astra Partners I Not Closed 3,4 $7.5 DEFY Partners I, LP Closed 5/12/17 4 $7.5 P4G Capital Partners Not Closed 3,4,5 $7.5 Oak HC/FT II, LP Closed 3/31/17 4 $10.0 Total $32.5 $32.5 (1) Approved Commitments as of 6/30/2017 (2) ARV - Adjusted Reported Value. Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity (3) Total Value: Cumulative Distributions + ARV 2 (4) Return Multiple: (Cumulative Distributions + ARV 2 ) / Cumulative Contributions (including fees outside of commitment) (5) Net IRR Since Inception as of 12/31/2016 *LGBT and Disabled Veteran criteria added in Continuing to search for Disabled Veteran managed fund ** Minority Ownership Legend: 1) U.S. Hispanic 2) Asian American 3) African American 4) Woman 5) LGBT Page 38 Specialized Managers that are Minority-, Woman- and LGBT-owned business entities Seven of the Specialized Managers that PA has recommended have graduated to the Core Program Performance: $'s in millions Commitments 1 Contributions Distributions ARV 2 Total Value 3 Return Multiple 4 Net IRR 5 $254.0 $152.0 $30.0 $173.5 $ x 14.7% Since the award of $100 million of new capital in September of 2016, the Board has approved 4 new funds recommended by PA totaling $32.5 million in commitments

48 Los Angeles Fairview Capital Partners-Specialized Manager Commitments Since the $50 million pool of new capital was awarded to Fairview in September 2016, LAFPP s Board has approved 3 new funds recommended by Fairview totaling $15 million of commitments First, Second or Third Target Fund Size Minority/Woman/Disabled Veteran/LGBT* California Specialized Cumulative $ s in millions Institutional Fund $500.0 Ownership** Office Investments Commitments Commitments Greycroft Growth II Closed 1/12/17 4 $5.0 Argand Capital Partners Closed 2/1/17 2,3,4 $5.0 Centana Growth Closed 3/3/17 2 $5.0 Total $15.0 $15.0 *LGBT and Disabled Veteran criteria added in 2016 ** Minority Ownership Legend: 1) U.S. Hispanic 2) Asian American 3) African American 4) Woman 5) LGBT Page 39 All three of the funds are managed by Specialized Managers that are Minority- and / or Woman- owned business entities Performance: All three fund commitments closed in Q It is too early to expect any performance at this point in time The pipeline for the Specialized Manager Program remains strong The universe of Specialized Private Equity Managers continues to evolve and grow. Fairview believes the persistent high rate of new firm formation bodes well for LAFPP s program as many high quality / tenured managers are looking to build their own private equity franchises

49 Los Angeles StepStone Group-Specialized Manager Commitments From 2007 to 2010, Stepstone approved commitments totaling $177.5 million to 20 funds managed by 18 Specialized Managers Three of the Specialized Managers that StepStone recommended graduated to the Core Program PA recommended and the Board approved commitments to funds sponsored by all three of these Specialized Managers before they graduated to the Core Program Performance: $'s in millions Commitments 1 Contributions Distributions ARV 2 Total Value 3 Return Multiple 4 Net IRR 5 $ $ $ $ $ x 9.4% (1) Approved Commitments as of 12/31/2016 (2) ARV - Adjusted Reported Value. Represents reported value as most recently reported by the General Partners, adjusted for net contribution and distribution activity (3) Total Value: Cumulative Distributions + ARV 2 (4) Return Multiple: (Cumulative Distributions + ARV 2 ) / Cumulative Contributions (including fees outside of commitment) (5) Net IRR Since Inception as of 12/31/2016 Page 40

50 Los Angeles Disclosure Statement Page 41

51 Los Angeles Disclosure Statement GENERAL DISCLAIMER PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PAST PERFORMANCE PRESENTED IN THIS DOCUMENT REFLECTS THE PARTICULAR OBJECTIVES AND CONSTRAINTS OF PORTFOLIO ADVISORS ADVISORY CLIENTS AND/OR MANAGED FUNDS OF FUNDS AT DIFFERENT POINTS IN TIME AND IS BASED ON THE ACTUAL HISTORICAL PERFORMANCE OF THE PRIVATE EQUITY FUNDS, CO-INVESTMENTS OR ANY OTHER INVESTMENTS, AS APPLICABLE (COLLECTIVELY OR INDIVIDUALLY, AS THE CONTEXT REQUIRES, INVESTMENTS ), COMMITTED TO ON THEIR BEHALF. NO REPRESENTATION IS MADE THAT THE INVESTMENTS WOULD HAVE BEEN SELECTED FOR ANY PORTFOLIO ADVISORS-SPONSORED FUND DURING THE PERIOD SHOWN OR THAT THE PERFORMANCE OF ANY PORTFOLIO ADVISORS-SPONSORED FUND WOULD HAVE BEEN THE SAME OR SIMILAR TO THE PERFORMANCE REFLECTED. PORTFOLIO ADVISORS-SPONSORED FUNDS MAKE INVESTMENTS IN DIFFERENT ECONOMIC CONDITIONS THAN THOSE PREVAILING IN THE PAST AND IN DIFFERENT INVESTMENTS THAN THOSE REFLECTED IN THE PERFORMANCE RECORD(S) SHOWN HEREIN. ADDITIONALLY, THE PERFORMANCE DESCRIBED HEREIN REFLECTS THE PERFORMANCE OF CERTAIN INVESTMENTS OVER A LIMITED PERIOD OF TIME AND DOES NOT NECESSARILY REFLECT ANY SUCH INVESTMENTS PERFORMANCE IN DIFFERENT MARKET CYCLES. THE PERFORMANCE RECORD(S) SHOWN HEREIN WERE COMPILED, AND REFLECT CERTAIN SUBJECTIVE ASSUMPTIONS AND JUDGMENTS, BY PORTFOLIO ADVISORS. IT HAS NOT BEEN AUDITED OR REVIEWED BY ANY INDEPENDENT PARTY FOR ACCURACY OR REASONABLENESS. PROSPECTIVE INVESTORS SHOULD UNDERSTAND THAT THE USE OF DIFFERENT UNDERLYING ASSUMPTIONS AND JUDGMENTS, AND COMPARISONS TO DIFFERENT INFORMATION, COULD RESULT IN MATERIAL DIFFERENCES FROM THE PERFORMANCE RECORD(S) HEREIN. ADDITIONAL INFORMATION CAN BE PROVIDED BY PORTFOLIO ADVISORS UPON REQUEST. GENERAL DISCLOSURE THE SUMMARY DESCRIPTION OF ANY PORTFOLIO ADVISORS-SPONSORED FUND (EACH, THE FUND ) INCLUDED HEREIN, AND ANY OTHER MATERIALS PROVIDED TO YOU, ARE INTENDED ONLY FOR DISCUSSION PURPOSES AND ARE NOT INTENDED AS AN OFFER TO BUY OR A SOLICITATION OF AN OFFER TO BUY OR SELL WITH RESPECT TO THE PURCHASE OR SALE OF ANY SECURITY AND SHOULD NOT BE RELIED UPON BY YOU IN EVALUATING THE MERITS OF INVESTING IN ANY SECURITIES. THESE MATERIALS ARE NOT INTENDED FOR DISTRIBUTION TO, OR USE BY, ANY PERSON OR ENTITY IN ANY JURISDICTION OR COUNTRY WHERE SUCH DISTRIBUTION OR USE IS CONTRARY TO LOCAL LAW OR REGULATION. THIS SUMMARY IS NOT INTENDED TO BE COMPLETE AND THE DESCRIPTION OF THE TERMS OF ANY FUND HEREIN IS QUALIFIED IN ITS ENTIRETY BY THE TERMS CONTAINED IN SUCH FUND S CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM, PARTNERSHIP AGREEMENT AND SUBSCRIPTION AGREEMENT (THE "FUND DOCUMENTS") SIMILARLY, ANY SUMMARIES OF PORTFOLIO ADVISORS POLICIES ARE QUALIFIED IN THEIR ENTIRETY BY THE TERMS OF THE ACTUAL POLICIES. MATERIAL ASPECTS OF THE DESCRIPTIONS CONTAINED HEREIN MAY CHANGE AT ANY TIME AND IF YOU EXPRESS AN INTEREST IN INVESTING IN THE FUND YOU WILL BE PROVIDED WITH A COPY OF THE FUND DOCUMENTS. YOU MUST REVIEW THE FUND DOCUMENTS AND RISK FACTORS DISCLOSED IN THE FUND DOCUMENTS PRIOR TO MAKING A DECISION TO INVEST. YOU SHOULD RELY ONLY ON THE INFORMATION CONTAINED IN THE FUND DOCUMENTS IN MAKING YOUR DECISION TO INVEST. THE INFORMATION HEREIN IS NOT INTENDED TO PROVIDE, AND SHOULD NOT BE RELIED UPON FOR, ACCOUNTING, LEGAL OR TAX ADVICE OR INVESTMENT RECOMMENDATIONS. YOU SHOULD CONSULT YOUR TAX, LEGAL, ACCOUNTING OR OTHER ADVISORS ABOUT THE MATTERS DISCUSSED HEREIN. THE FUND WILL NOT REGISTER AS INVESTMENT COMPANIES UNDER THE U.S. INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE "COMPANY ACT") IN RELIANCE UPON THE EXEMPTION UNDER SECTION 3(C)(7) THEREUNDER, AND, ACCORDINGLY, THE PROVISIONS OF THE COMPANY ACT WILL NOT BE APPLICABLE TO THE FUND. AN INVESTMENT IN THE FUND WILL BE SUITABLE ONLY FOR CERTAIN SOPHISTICATED INVESTORS WHO HAVE NO NEED FOR IMMEDIATE LIQUIDITY IN THEIR INVESTMENT. SUCH AN INVESTMENT WILL PROVIDE LIMITED LIQUIDITY BECAUSE INTERESTS IN THE FUND WILL NOT BE FREELY TRANSFERABLE AND MAY GENERALLY NOT BE WITHDRAWN. THERE WILL BE NO PUBLIC OR SECONDARY MARKET FOR INTERESTS IN THE FUND, AND IT IS NOT EXPECTED THAT A PUBLIC OR SECONDARY MARKET WILL DEVELOP. Page 42

52 Los Angeles Disclosure Statement (continued) INVESTING IN FINANCIAL MARKETS INVOLVES A SUBSTANTIAL DEGREE OF RISK. THERE CAN BE NO ASSURANCE THAT THE FUND S INVESTMENT OBJECTIVES OR ANY OF THE FUND S (OR ITS SECTORS AND SUB-SECTORS, IF ANY) INVESTMENT OBJECTIVES WILL BE ACHIEVED OR THAT THERE WILL BE A RETURN OF CAPITAL. INVESTMENT LOSSES MAY OCCUR WITH RESPECT TO ANY INVESTMENT IN THE FUND AND INVESTORS COULD LOSE SOME OR ALL OF THEIR INVESTMENT. NOTHING HEREIN IS INTENDED TO IMPLY THAT AN INVESTMENT IN THE FUND OR THE FUND'S INVESTMENT STRATEGIES MAY BE CONSIDERED "CONSERVATIVE," "SAFE," "RISK FREE" OR "RISK AVERSE." NO REGULATORY AUTHORITY HAS PASSED UPON OR ENDORSED THIS SUMMARY OR THE MERITS OF AN INVESTMENT IN THE FUND. DISTRIBUTION OF THIS INFORMATION TO ANY PERSON OTHER THAN THE PERSON TO WHOM THIS INFORMATION WAS ORIGINALLY DELIVERED AND TO SUCH PERSON'S ADVISORS IS UNAUTHORIZED AND ANY REPRODUCTION OF THESE MATERIALS, IN WHOLE OR IN PART, OR THE DISCLOSURE OF ANY OF THE CONTENTS, WITHOUT THE PRIOR CONSENT OF PORTFOLIO ADVISORS, LLC. IN EACH SUCH INSTANCE IS PROHIBITED. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, EACH RECIPIENT OF THIS SUMMARY (AND EACH EMPLOYEE, REPRESENTATIVE OR AGENT OF SUCH RECIPIENT) MAY DISCLOSE TO ANY AND ALL PERSONS, WITHOUT LIMITATION OF ANY KIND, THE TAX TREATMENT AND TAX STRUCTURE OF (I) THE FUND AND (II) ANY OF ITS TRANSACTIONS, AND ALL MATERIALS OF ANY KIND (INCLUDING OPINIONS OR OTHER TAX ANALYSES) RELATING TO SUCH TAX TREATMENT AND TAX STRUCTURE. CERTAIN INFORMATION CONTAINED HEREIN CONSTITUTES FORWARD-LOOKING STATEMENTS. DUE TO VARIOUS UNCERTAINTIES AND ACTUAL EVENTS, INCLUDING THOSE DISCUSSED HEREIN AND IN THE FUND DOCUMENTS, ACTUAL RESULTS OR PERFORMANCE OF THE FUND MAY DIFFER MATERIALLY FROM THOSE REFLECTED OR CONTEMPLATED IN SUCH FORWARD-LOOKING STATEMENTS. AS A RESULT, INVESTORS SHOULD NOT RELY ON SUCH FORWARD-LOOKING STATEMENTS IN MAKING THEIR INVESTMENT DECISIONS. ANY TARGET OBJECTIVES ARE GOALS ONLY, ARE NOT PROJECTIONS OR PREDICTIONS AND ARE PRESENTED SOLELY FOR YOUR INFORMATION. NO ASSURANCE IS GIVEN THAT THE FUND WILL ACHIEVE ITS INVESTMENT OBJECTIVES. EXAMPLES OF INVESTMENTS DESCRIBED HEREIN DO NOT NECESSARILY REPRESENT ALL OR ANY OF THE INVESTMENTS THAT WILL BE MADE BY THE FUND. IT MAY NOT BE ASSUMED THAT ANY INVESTMENTS DESCRIBED HEREIN WOULD BE PROFITABLE IF IMPLEMENTED. INVESTMENT ALLOCATIONS MAY BE CHANGED OR MODIFIED AT ANY TIME WITHOUT NOTICE TO YOU AT THE SOLE DISCRETION OF PORTFOLIO ADVISORS, LLC. THE INFORMATION HEREIN MAY NOT BE RELIED ON IN MAKING ANY INVESTMENT DECISION. INVESTMENT DECISIONS MAY ONL Y BE MADE IN RELIANCE UPON THE INFORMATION SET FORTH IN THE FUND DOCUMENTS. IF THE RECIPIENT OF THIS DOCUMENT IS OR BECOMES SUBJECT TO: (I) SECTION 552(A) OF TITLE 5 OF THE UNITED STATES CODE (COMMONLY KNOWN AS THE FREEDOM OF INFORMATION ACT ) OR ANY PUBLIC DISCLOSURE LAW, RULE OR REGULATION OF ANY GOVERNMENTAL OR NON-GOVERNMENTAL ENTITY THAT COULD REQUIRE SIMILAR OR BROADER PUBLIC DISCLOSURE OF CONFIDENTIAL INFORMATION PROVIDED TO SUCH RECIPIENT; (II) ANY PUBLIC DISCLOSURE LAW, RULE OR REGULATION OF ANY PUBLIC COMPANY THAT COULD REQUIRE SIMILAR OR BROADER PUBLIC DISCLOSURE OF CONFIDENTIAL INFORMATION PROVIDED TO SUCH RECIPIENT; OR (III) ANY PUBLIC DISCLOSURE LAW, RULE OR REGULATION OF ANY PENSION FUND (OR SIMILAR ENTITY) THAT COULD REQUIRE SIMILAR OR BROADER PUBLIC DISCLOSURE OF CONFIDENTIAL INFORMATION PROVIDED TO SUCH RECIPIENT (COLLECTIVELY, ALL SUCH LAWS, RULES OR REGULATIONS, FOIA ), THEN, TO THE EXTENT THAT ANY SUCH RECIPIENT RECEIVES A REQUEST FOR PUBLIC DISCLOSURE OF THIS DOCUMENT, SUCH RECIPIENT AGREES THAT: (I) IT SHALL USE ITS BEST EFFORTS TO (X) PROMPTLY NOTIFY PORTFOLIO ADVISORS OF SUCH DISCLOSURE REQUEST AND PROMPTLY PROVIDE PORTFOLIO ADVISORS WITH A COPY OF SUCH DISCLOSURE REQUEST OR A DETAILED SUMMARY OF THE INFORMATION BEING REQUESTED, (Y) INFORM PORTFOLIO ADVISORS OF THE TIMING FOR RESPONDING TO SUCH DISCLOSURE REQUEST, (Z) CONSULT WITH PORTFOLIO ADVISORS REGARDING THE RESPONSE TO SUCH PUBLIC DISCLOSURE REQUEST, INCLUDING PORTFOLIO ADVISORS CONSIDERATION OF WHETHER SUCH DISCLOSURE IS IN THE BEST INTEREST OF THE FUND AND, TO THE FULLEST EXTENT PERMITTED BY LAW, WHETHER ALL OR ANY PART OF THIS DOCUMENT MAY BE WITHHELD FROM SUCH PUBLIC DISCLOSURE REQUEST. NONE OF THE INFORMATION CONTAINED HEREIN WAS PREPARED, REVIEWED OR APPROVED BY THE UNDERLYING PORTFOLIO FUNDS IDENTIFIED HEREIN, IF ANY, THE GENERAL PARTNERS THEREOF OR ANY OF THEIR RESPECTIVE AFFILIATES. BY ACCEPTING THESE MATERIALS, YOU HEREBY ACKNOWLEDGE AND AGREE TO ALL OF THE TERMS AND CONDITIONS IN THIS DISCLOSURE STATEMENT, SPECIFICALLY THAT THE INFORMATION CONTAINED HEREIN IS HIGHLY CONFIDENTIAL AND THAT YOU SHALL NOT DISCLOSE OR CAUSE TO BE DISCLOSED ANY SUCH INFORMATION WITHOUT THE PRIOR WRITTEN CONSENT OF PORTFOLIO ADVISORS, LLC. Page 43

53 Los Angeles Thank you! Todd A. Hughes, CFA (203) Gregory J. Garrett (203) Liz Campbell (203) Page 44

54 Los Angeles Fire and Police Pensions August 3, 2017 Fairview Capital Partners, Inc. West Hartford, CT San Francisco, CA

55 Fairview Has Built a Leading Venture Capital and Private Equity Investment Platform The Fairview Capital Investment Platform Status Independent, SEC registered private equity investment management firm founded in 1994, with aggregate fund capitalization of $3.9 billion since inception Accounts Manage 24 customized separate accounts and funds of funds Expertise Access Extensive experience developing intelligent venture capital and private equity solutions designed to help institutional investors successfully access high quality opportunities Fully embedded in the venture capital and private equity community - serving on 49 firm advisory boards Team Seasoned multi-generational team well positioned for the future Approach Service Integrated team approach to doing business with strong teams focused on investment, account/finance and client service Commitment to providing institutional investors with superior risk-adjusted returns and the highest quality client service in the asset class 1

56 The Team Dedicated to LAFPP Specialized Private Equity Manager Program JoAnn Price Co-founder/Managing Partner President of the National Association of Investment Companies Chair of the Hartford Foundation for Public Giving and board of directors of the Apollo Theater Foundation Former independent director of the Vantagepoint Mutual Fund headquartered in Washington, D.C. B.A. from Howard University Cynthia Tseng, CFA Partner Investment banker focused on convertible bond and equity origination at JPMorgan Equity research associate at JPMorgan Board of directors of The Association of Asian American Investment Managers MBA from Wharton and B.A. in Applied Mathematics / Economics from Brown University Lesley Nettles Principal Business development positions within Bank of America s asset management subsidiaries Director for Columbia Management Group focuses on developing the firm s national public fund business strategy VP at Progress Investment Management Company B.A. from University of California Berkeley 2

57 LAFPP Specialized Private Equity Manager Program Investment Strategy Overview and Status Background: Fairview selected as non-discretionary advisor by the LAFPP Board of Administration Commitment: $50 million Inception: November 1, 2016 Investments: 3 underlying portfolio fund commitments to date* * As of March 31, 2017 Interactions Market intelligence Pipeline review Due diligence and investment recommendation Sharing of formal research Fund Portfolio Construction Primary Attributes $50mm mandate over 3-year time period First, second and third time funds Funds <$500mm Strategy: Small / Mid-market buyout, Growth Equity, Venture and Opportunistic Strategies Diversification across vintage years Approximately 10 investments Fairview s Allocation Policy for LAFPP Specialized PE Manager Program Strategy Target Range Target Allocation Buyout 40%-60% 50% Growth Equity / Venture Opportunistic Strategies 20%-50% 35% 0%-30% 15% Total 100% 3

58 LAFPP Specialized Private Equity Manager Program Underlying Partnerships (as of 3/31/2017) Fund Name Strategy Fund Size ($MM) Vintage Year Location Commitment ($MM) Argand Partners Fund I, L.P. Buyout $ New York, NY $5.0 Centana Growth Partners, L.P. Growth Equity $ Palo Alto, CA / New York, NY $5.0 Greycroft Growth II, L.P. Growth Equity $ Los Angeles, CA / New York, NY $ Argand Partners Fund I has a target fund size of $500mm Investment Strategy* Vintage Year* Growth Equity 67% Buyout 33% Vintage % Vintage % *Percentages calculated based on investment commitments. Percentages subject to change over investment period of the program 4

59 Fairview s Pipeline for LAFPP Specialized Private Equity Manager Program is Strong Advisory Board Participation Pipeline - Screening for LAFPP (since inception in 2016) Industry Conferences Speaking Engagements Industry Research Open Door Policy Access to the specialized manager universe Deal Flow= 114 Initial Stage = 37 Stage 1 = 17 Stage 2 = 9 Declined = 48 Strong industry networks across multiple dimensions Continuous market research Rigorous manager selection model Committed = 3 Opportunities Ahead There are 63 funds currently in various stages of active due diligence Open and responsive to managers 5

60 Argand Partners Fund I, L.P. Fund Overview Current Investment Firm Name: Argand Partners Location: New York, NY Founded: 2015 Fund Size: $350 million (target $500 million) Strategy: Buyout General Partners: Heather Faust, Howard Morgan, and Tariq Osman Investment Focus Argand seeks to achieve substantial long-term capital appreciation for investors with relatively low operating and financial risk. Argand will typically serve as a control or lead investor in companies principally located in North America. Argand focuses on businesses with leading or highlydefensible market positions led by proven management teams investing meaningful amounts of equity alongside the Fund. The firm targets industries with predictable / long-term demand. Communication Sigma Electric Manufacturing Sigma Electric is a leading, vertically integrated manufacturer of electrical fittings and other precision engineered solutions. The company serves as a trusted, reliable supply chain partner to a global customer base. Sigma Electric manufactures and sells metal castings, injection molded products, and accessories used in a variety of industries including commercial, industrial and residential construction, and power transmission. Sigma offers a compelling customer value proposition supported by: Significant engineering capabilities Low-cost manufacturing Just-in-time supply chain capabilities A comprehensive product portfolio Note: Data as of March 31,

61 Centana Growth Partners, L.P. Fund Overview Firm Name: Centana Growth Partners Location: Palo Alto, CA / New York, NY Founded: 2015 Fund Size: $250 million Strategy: Growth Equity General Partners: Eric Byunn and Ben Cukier Investment Focus Centana seeks to invest in companies that have reached a stage of development where additional capital, expertise and other resources can further catalyze rapid growth. These companies are typically too small to pursue the public markets and favor equity investments rather than debt financing. Centana targets companies that offer differentiated products with profitable unit economics. Further, Centana targets companies that maintain high levels of capital efficiency, enabling businesses to withstand negative impacts from potential economic downturns. Current Investment Examples Blueprint Blueprint Systems is a leading enterprise software company in the application lifecycle management space. The company provides a software solution that helps organizations build better business applications. Over two-thirds of sales stem from the financial services end-market. Since 2013, the company has experienced a 75% compound annual growth rate in annualized bookings. Jumio Jumio is a leading identity management and credentials authentication company that helps businesses reduce identity fraud and improve the user experience. The company has large enterprise customers such as AirBnB, United Airlines, Lloyds Bank and E-Trade, in addition to over 200 others across a variety of verticals. Jumio s new executive team is focused on execution and has demonstrated long-term commitment to the company s proven growth strategy. Vena Solutions Vena Solutions provides a software for managing business-critical spreadsheets, including those addressing corporate performance and regulatory reporting. With key customers such as Wells Fargo, Morgan Stanley, PNC and BNP Paribas, the platform offers financial analytics for CCAR, the Federal Reserve s bank stress test. The company experienced over 100% year over year annual recurring revenue growth over the past three years. Note: Data as of March 31,

62 Greycroft Growth II, L.P. Fund Overview Current Investments* Firm Name: Greycroft Partners Location: Los Angeles, CA / New York, NY Founded: 2006 Fund Size: $250 million Strategy: Growth Equity General Partners: Alan Patricof, Dana Settle and Ian Sigalow Investment Focus Greycroft Partners focuses on investments in the internet and mobile markets. Greycroft leverages a network of media and technology industry connections to help entrepreneurs gain visibility, build strategic relationships, bring their products to market, and build successful businesses. Communication Shipt Shipt is a subscription-based, on-demand grocery delivery service based in Birmingham, AL and San Francisco, CA. The company focuses on suburban markets across the United States and works with traditional grocery stores including Kroger, Publix, Meijer, and Whole Foods to provide an e-commerce frontend for their stores. Shipt now operates in 33 markets, has grown its user base to over 130K members. Bright Health Bright Health is a tech-enabled health insurance company based in Minneapolis, MN. The CEO and co-founder of Bright Health is Bob Sheehy, who was previously the CEO of UnitedHealthcare, the largest health insurance company in the world. The company s unique approach to healthcare involves launching dedicated plans with the leading healthcare providers in major US markets. Bright Health is currently operating in Colorado and expects to be in three new geographies by Note: Data as of March 31, 2017 * Investments were made subsequent to quarter ending March 31,

63 Thank you! Cynthia Tseng, CFA Partner 75 Isham Rd Suite 200 West Hartford, CT Tel: Lesley Nettles Principal nd Street San Francisco, CA lnettles@fairviewcapital.com Tel:

64 Legal The information set forth in this document is proprietary and shall be maintained in strict confidence. This document should not be distributed, published or reproduced in whole or in part, nor should its contents be disclosed by recipients to any other person. This document is for informational purposes only and is not an offer to buy or sell, nor a solicitation of any offer to buy or sell any security or other financial instrument and may not be relied on in any manner as legal, tax or investment advice. The information contained herein is subject to and qualified in its entirety by the Private Placement Memorandum (the Memorandum ). An offer to invest may be made only through the Memorandum. Prospective investors must, prior to making an investment, review the Memorandum, which will contain tax information and risk and conflict of interest disclosures that are important to any investment decision regarding Fairview Private Markets Fund IV, L.P. (the Fund ), and which should be read carefully prior to an investment in the Fund. No person has been authorized to make any statement concerning the Fund other than as will be set forth in the Memorandum and any representation or information not contained therein may not be relied upon. Prospective investors should make their own investigations and evaluations of the information contained in this document. Prior to closing of a private offering of Interests in the Fund, Fairview Capital Partners, Inc. will give investors the opportunity to ask questions and receive additional information concerning terms and conditions of such offering and other relevant matters. Each prospective investor should consult its own legal, accounting and tax advisors as to legal, business, tax and related matters concerning the information contained in this document and such offering and in order to make an independent determination of the suitability and consequences of a potential investment in the Fund. 10

65 DEPARTMENT OF FIRE AND POLICE PENSIONS 701 E. 3rd Street, Suite 200 Los Angeles, CA (213) REPORT TO THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS DATE: AUGUST 3, 2017 ITEM: B.5 FROM: RAYMOND P. CIRANNA, GENERAL MANAGER SUBJECT: 2017 ANNUAL MEMBER SURVEY SUMMARY OF FINDINGS THIS REPORT IS PROVIDED FOR INFORMATION PURPOSES DISCUSSION The 2017 Annual Member Survey was conducted from May 10-24, and postcard notifications were sent to all active and retired members inviting their participation. Staff also requested assistance from the unions and associations to disseminate the invitation through blasts and website notices. The survey was accessible on the homepage of our website and members were encouraged to participate online. Printed versions were also mailed to those who preferred a hard copy. A total of 1,529 surveys (659 Active, 870 Retired) were submitted by the deadline, including 47 mail-in copies. This represented a sample size of 6%, which exceeded our target sample of 3%. Members were surveyed on the following areas: Preferred method of correspondence Newsletters Website MyLAFPP Social Media and Videos Customer Service Experience Overall LAFPP satisfaction The surveyed members gave LAFPP an overall satisfaction rating of 94%, compared to 93% last year. The following is a summary of other statistics and a comparison to last year s survey results Active Retired Active Retired Total surveys received Preferred method to receive information Members who always read their newsletters 80.4% 95.3% 77.0% 96.7% Found the information on the website up-to-date 77.3% 81.2% - - Members who log into MyLAFPP 89.2% 60.9% 67.5% 43.0% Satisfaction with personalized info in MyLAFPP 85.5% 74.5% 52.8% 28.0% Have submitted their address in MyLAFPP 87.7% 81.0% - - Social Media preference YouTube YouTube Facebook Facebook Found staff responded accurately and timely 92.3% 94.7% 87.8% 91.9%