Report to Board of Administration Agenda of: DECEMBER 12, 2017 From: Thomas Moutes, General Manager ITEM: IV-I SUBJECT: DISCLOSURE REPORT OF FEES, EXPENSES, AND CARRIED INTEREST OF ALTERNATIVE INVESTMENT VEHICLES FOR THE FISCAL YEAR ENDING JUNE 30, 2017 PURSUANT TO GOVERNMENT CODE SECTION 7514.7 Recommendation: That the Board receive and file this report. Discussion: Background California Government Code Section 7514.7 (enacted into law by the passage of Assembly Bill 2833) requires to obtain and disclose specific fee, expense, and other information relating to alternative investment vehicles within the investment. The disclosure must be made at least annually at a meeting open to the public. The law defines an alternative investment vehicle as a private equity fund, venture fund, hedge fund, or absolute return fund; considers private real estate funds to fall within the scope of the alternative investment vehicles definition. Pursuant to Section 7514.7, alternative investment vehicles must provide the following information for public disclosure by : 1. The fees and that pays directly to the alternative investment vehicle, the management company or related parties. 2. pro rata share of fees and not included in (1) that are the alternative investment vehicle to the management company or related parties. 3. pro rata share of carried interest distributed by the alternative investment vehicle to the management company or related parties. 4. pro rata share of aggregate fees and of the held by the alternative investment vehicle to the fund manager or related parties. 5. The gross and net internal rate of return of the fund, since inception. 1
6. Any additional information described in the California Public Records Act [Government Code Section 6254.26 (b)]: i. The name, address, and vintage year of each alternative investment vehicle. ii. The dollar amount of the commitment made by to each alternative investment vehicle since inception. iii. The dollar amount of cash contributions made by to each alternative investment vehicle since inception. iv. The dollar amount, on a fiscal year-end basis, of cash distributions received by from each alternative investment vehicle. v. The dollar amount, on a fiscal year-end basis, of cash distributions received by plus remaining value of partnership assets attributable to investment in each alternative investment vehicle. vi. The net internal rate of return of each alternative investment vehicle since inception. vii. The investment multiple of each alternative investment vehicle since inception. viii. The dollar amount of the total management fees and costs paid on an annual fiscal year-end basis, by to each alternative investment vehicle. ix. The dollar amount of cash profit received by from each alternative investment vehicle on a fiscal year-end basis. The law applies mandatorily to funds committed to on and after January 1, 2017. Through the fiscal year ending June 30, 2017, 11 private equity funds and zero real estate funds within the were required by contract to comply with Section 7514.7. The law is voluntary for funds committed to prior to January 1, 2017, and for which no new capital commitments have been made (pre-2017 funds), subject to using reasonable effort to acquire the information. Staff issued letters to all pre-2017 private equity funds (227 funds) and real estate funds (51 funds) requesting information in accordance with Section 7514.7. Of these funds, 48 private equity funds and 16 real estate funds provided the data. The attached report contains alternative investments disclosures for the fiscal year ending June 30, 2017, pursuant to Section 7514.7. This report was prepared by Bryan Fujita, Chief Operating Officer, Division. RJ:BF:ag Attachments: A) Mandatory Disclosure Report for Private Equity s B) Mandatory Disclosure Report for Real Estate s C) Voluntary Disclosure Report for Private Equity s D) Voluntary Disclosure Report for Real Estate s 2
ATTACHMENT A MANDATORY DISCLOSURE BY FUNDS COMMITTED TO ON OR AFTER JANUARY 1, 2017 ABRY Senior Equity V, LP Brentwood Associates Private Equity VI, LP CVC Capital Partners VII, LP DEFY Partners I, LP EnCap Energy Capital XI, LP Glendon Opportunities II, LP New Enterprise Associates 16, LP Oak HC/FT Partners II, LP Palladium Equity Partners V, LP Stripes Growth Partners IV, LP Upfront VI, LP Remaining Profit 111 Huntington Ave 29th Floor Boston, MA 02199 2017 84,955 - - - 10,000,000 642,167 624,333-624,333 (10,437) 26.2% -9.3% 1.0 11150 Santa Monica Blvd Suite 1200 Los Angeles, CA 90025 2017 - - - - 25,000,000 - - - - - 0.0% 0.0% - 111 Strand London, England WCZR 0AG 2017 - - - - 27,196,260 - - - - - 0.0% 0.0% - 3340 Hillview Ave Palo Alto, CA 94304 2017 - - - - 10,000,000 - - - - - 0.0% 0.0% - 1100 Louisiana Street Suite 3150 Houston, TX 77002 2017 - - - - 40,000,000 - - - - - 0.0% 0.0% - 1620 26th Street, 2000N Santa Monica, CA 90404 2017 - - - - 40,000,000 - - - - - 0.0% 0.0% - 5425 Wisconsin Ave Suite 800 Chevy Chase, MD 20815 2017-26,048 - - 25,000,000 750,000 691,670-691,670 (209) -48.9% -62.2% 0.9 Three Pickwick Plaza Suite 302 Greenwich, CT 06830 2017 - - - - 10,000,000 - - - - - 0.0% 0.0% - 1270 Avenue of the Americas, Suite 2200 New York, NY 10020 2017 - - - - 25,000,000 - - - - - 0.0% 0.0% - 402 West 13th Street New York, NY 10014 2017 - - - - 10,000,000 - - - - - 0.0% 0.0% - 1314 7th Street Santa Monica, CA 90401 2017 - - - - 20,000,000 - - - - - 0.0% 0.0% - MANDATORY DISCLOSURE - Page 1 of 1
ATTACHMENT B MANDATORY DISCLOSURE BY FUNDS COMMITTED TO ON OR AFTER JANUARY 1, 2017 PRIVATE REAL ESTATE FUNDS None Contribution s Remaining Profit Rate of MANDATORY DISCLOSURE - REAL ESTATE FUNDS Page 1 of 1
ATTACHMENT C ACON Equity Partners III, LP Acon-Bastion Partners II, LP Advent International GPE VII-B, LP Advent International GPE VIII-B-2 American Securities VII Angeles Equity Partners I Apollo VI, LP Apollo VII, LP Apollo VIII, LP BC European X, LP Blue Sea Capital I CenterGate Capital Partners I Remaining Profit 1133 Connecticut Ave NW Suite 500 Washington, DC 20036 2012 239,981 - - 82,428 20,000,000 15,384,793 19,660,858 302,061 19,962,919 9,614 NA 10.0% 1.4 1133 Connecticut Ave NW Suite 500 Washington, DC 20036 2006 13,518-88,596 4,880 5,000,000 4,721,150 818,514 728,446 1,546,960 478,781 NA 13.5% 1.9 75 State Street Boston, MA 02109 2012 341,109 - - 54,258 30,000,000 27,000,000 32,412,381 4,995,000 37,407,381 4,107,836 28.0% 17.2% 1.5 75 State Street Boston, MA 02109 2016 702,189 - - 285 35,000,000 8,190,000 8,733,768 2,400,000 11,133,768 61,795 43.0% 207.6% 1.4 299 Park Avenue 34th Floor New York, NY 10171 2015 657,463 NA NA NA 25,000,000 8,714,568 5,939,419-5,939,419 NA 31.5% -61.6% 0.7 11661 San Vicente Blvd Suite 808 Los Angeles, CA 90049 2016 141,708 - - 60,278 10,000,000 1,052,788 827,900 83,784 911,684 - NA -6.2% 0.9 1 Manhattanville Road Suite 201 Purchase, NY 10577 2005 27,213 - - 8,133 15,000,000 14,372,999 4,842,952 224,427 5,067,379 92,102 12.0% 9.0% 1.7 1 Manhattanville Road Suite 201 Purchase, NY 10577 2008 43,529-127,596 15,851 20,000,000 16,949,586 5,019,170 1,400,091 6,419,261 1,025,674 34.0% 23.8% 2.1 1 Manhattanville Road Suite 201 Purchase, NY 10577 2013 368,124-37,764 226,753 40,000,000 23,822,873 27,795,391 1,705,922 29,501,313 201,468 26.0% 14.2% 1.2 650 Madison Avenue New York, NY 10022 2017 167,290 - - - 28,238,400 - - - - - NA 0.0% - 240 Royal Palm Way Floor 2 Palm Beach, FL 33480 2013 79,537 4,134-55,688 10,000,000 4,247,693 5,324,057-5,324,057 - NA 13.1% 1.3 2700 Via Fortuna Suite 145 Austin, TX 78746 2015 109,185 - - - 10,000,000 735,465 432,575 62,277 494,852 - NA -13.4% 0.7 Note: Report excludes funds that are not required to comply with Section 7514.7 and have opted not to provide such information upon request. VOLUNTARY DISCLOSURE - Page 1 of 5
ATTACHMENT C Craton Equity Investors I, LP DFJ Growth 2013, LP DFJ Growth III Draper, Fisher & Jurvetson XII, LP EIG Energy XVI EnCap Energy Capital VIII, LP EnCap Energy Capital X, LP EnCap Energy IX First Reserve XI, LP First Reserve XII, LP Remaining Profit 8750 Wilshire Blvd Suite 250 Beverly Hills, CA 90211 2006 82,136 - - - 10,000,000 9,973,980 1,401,686 307,174 1,708,860 (217,943) NA -19.5% 0.3 2882 Sand Hill Road Suite 150 Menlo Park, CA 94025 2013 613,693 - - - 25,000,000 22,501,311 27,123,115-27,123,115 - NA 8.9% 1.2 2882 Sand Hill Road Suite 150 Menlo Park, CA 94025 2017 70,810 - - - 15,000,000 615,000 526,344-526,344 - NA -84.6% 0.9 2882 Sand Hill Road Suite 150 Menlo Park, CA 94025 2014 268,102 NA NA NA 10,000,000 2,275,000 2,274,308-2,274,308 - NA -0.1% 1.0 1700 Pennsylvania Ave NW Suite 800 Washington, DC 20006 2013 399,077 - - - 25,000,000 15,412,306 14,977,325 1,787,465 16,764,790 292,829 13.7% 8.7% 1.3 1100 Louisiana Street Suite 3150 Houston, TX 77002 2010 147,503 - - - 15,000,000 13,746,702 6,640,456 2,221,482 8,861,938 (1,195,261) -0.5% -3.4% 0.9 1100 Louisiana Street Suite 3150 Houston, TX 77002 2015 528,150 - - - 35,000,000 16,029,712 15,776,197 2,575,633 18,351,830 3,059,845 33.4% 17.9% 1.1 1100 Louisiana Street Suite 3150 Houston, TX 77002 2013 336,325 - - - 30,000,000 24,428,990 20,089,655 10,975,454 31,065,109 9,550,303 24.7% 16.9% 1.4 One Lafayette Place Greenwich, CT 06830 2006 42,367 - - 885 30,000,000 30,000,000 2,149,261 1,108,035 3,257,296 (6,431,764) NA -7.6% 0.7 One Lafayette Place Greenwich, CT 06830 2008 152,169 - - 1,677 25,000,000 25,417,087 7,112,478 252,885 7,365,363 (4,183,239) NA -8.7% 0.8 Gilde Buyout Partners V, LP 2-8, avenue Charles de Gaulle, L-1653 Luxembourg R.C.S. Luxembourg: B 198.047 2016 392,948 - - - 26,084,371 4,796,758 4,031,439-4,031,439 - NA -28.2% 0.8 Glendon Opportunities, LP 1620 26th Street, 2000N Santa Monica, CA 90404 2014 314,000 NA 1,000 NA 20,000,000 12,990,996 15,595,337-15,595,337-10.4% 8.1% 1.2 Note: Report excludes funds that are not required to comply with Section 7514.7 and have opted not to provide such information upon request. VOLUNTARY DISCLOSURE - Page 2 of 5
ATTACHMENT C Incline Equity Partners IV, LP Oak HC/FT Partners, LP Oak Partners XII, LP Oaktree Opportunities X, LP Oaktree Opportunities Xb, LP Permira Europe III (EUR), LP Permira Europe IV (EUR), LP Searchlight Capital Partners II, LP StarVest Partners II, L.P. StepStone Pioneer Capital I, LP StepStone Pioneer Capital II, LP Remaining Profit 625 Liberty Ave EQT Plaza Suite 340 Pittsburgh, PA 15222 2017 58,861 - - - 10,000,000 - - - - - NA 0.0% - Three Pickwick Plaza Suite 302 Greenwich, CT 06830 2014 233,194 - - - 10,000,000 6,961,965 8,125,232 536,333 8,661,565 190,903 NA 15.4% 1.2 901 Main Ave Suite 600 Norwalk, CT 06851 2006 135,046 - - - 15,000,000 15,000,000 4,735,164 266,463 5,001,627 135,836 NA 0.4% 1.0 333 South Grand Ave 28th Floor Los Angeles, CA 90071 2015 235,183 NA - NA 7,500,000 2,250,000 2,968,020 92,949 3,060,969 567,208 NA 29.2% 1.4 333 South Grand Ave 28th Floor Los Angeles, CA 90071 2016 - - - - 17,500,000 - - - - - 0.0% 0.0% - PO Box No 503 Trafaigar Court Les Banques St. Peter Port, Guernsey GY1 6DJ 2004 4,635-115,868 163 21,506,160 21,506,160 231,388 524,774 756,162 (917,465) NA 26.0% 1.7 PO Box No 503 Trafaigar Court Les Banques St. Peter Port, Guernsey GY1 6DJ 2006 9,018-1,433,711 3,822 14,922,127 14,664,448 3,266,254 2,890,830 6,157,084 762,826 NA 8.7% 1.6 745 Fifth Ave New York, NY 10151 2015 510,640 - - 37,258 25,000,000 6,964,191 8,829,017-8,829,017 - NA 22.0% 1.3 750 Lexington Ave New York, NY 10022 2007 46,025 - - - 5,000,000 4,922,712 3,604,237 817,448 4,421,685 681,197 NA -1.3% 0.9 4275 Executive Square Suite 500 La Jolla, CA 92037 2004 23,513 - - - 10,000,000 9,751,776 3,455,952 429,160 3,885,112 341,995 NA 5.8% 1.4 4275 Executive Square Suite 500 La Jolla, CA 92037 2006 36,584 - - - 10,000,000 9,421,683 7,565,543 2,162,896 9,728,439 1,529,415 NA 9.0% 1.8 Note: Report excludes funds that are not required to comply with Section 7514.7 and have opted not to provide such information upon request. VOLUNTARY DISCLOSURE - Page 3 of 5
ATTACHMENT C StepStone Secondary Opportunities Fd III TA X, LP TA XI, LP TA XII-A, LP Thoma Bravo XII, LP Thoma Bravo Special Opportunities II Thoma Bravo XI TPG Growth II, LP TPG Partners III, LP TPG Partners IV, LP TPG Partners V, LP TPG Partners VI, LP Remaining Profit 4275 Executive Square Suite 500 La Jolla, CA 92037 2016 519,692 - - - 25,000,000 5,511,922 6,365,246 7,104 6,372,350 150,317 NA 19.1% 1.2 200 Clarendon Street 56th Floor Boston, MA 02116 2006 - - 84,857-6,000,000 6,186,689 214,756 645,000 859,756 NA 10.3% 5.2% 1.3 200 Clarendon Street 56th Floor Boston, MA 02116 2010-320,810 908,664 1,235 20,000,000 19,650,000 17,714,655 5,671,119 23,385,774 NA 30.4% 20.3% 1.9 200 Clarendon Street 56th Floor Boston, MA 02116 2015-301,561 - - 25,000,000 7,687,500 8,149,500 562,500 8,712,000 NA 42.9% 19.7% 1.1 300 N. LaSalle Street Suite 4350 Chicago, IL 60654 2016 329,864 NA - 103,517 25,000,000 10,125,100 10,136,080 1,795 10,137,875 - NA 0.2% 1.0 300 N. LaSalle Street Suite 4350 Chicago, IL 60654 2015 3,911 NA - 48,867 10,000,000 9,874,789 11,846,543-11,846,543 - NA 11.9% 1.2 300 N. LaSalle Street Suite 4350 Chicago, IL 60654 2014 60,896 NA - 221,780 15,000,000 14,915,896 19,292,594-19,292,594 - NA 14.0% 1.3 Fort Worth, TX 76102 2011 483,192 NA - NA 30,000,000 25,821,842 47,937,614 8,560,465 56,498,079 5,621,852 NA 26.7% 2.2 Fort Worth, TX 76102 1999 2,051 NA - NA 21,458,107 22,442,286 281,121-281,121 (276,500) NA 24.6% 2.5 Fort Worth, TX 76102 2003 8,170 NA 443,857 NA 23,256,237 27,436,973 2,525,501 1,837,776 4,363,277 994,373 NA 15.5% 2.0 Fort Worth, TX 76102 2006 54,399 NA - NA 28,726,546 31,415,182 9,284,221 4,170,355 13,454,576 1,909,035 NA 5.2% 1.4 Fort Worth, TX 76102 2008 107,294 NA 426,410 NA 22,500,000 23,863,728 12,289,818 4,639,303 16,929,121 2,545,806 NA 11.3% 1.5 Note: Report excludes funds that are not required to comply with Section 7514.7 and have opted not to provide such information upon request. VOLUNTARY DISCLOSURE - Page 4 of 5
ATTACHMENT C TPG Star, LP Remaining Profit Fort Worth, TX 76102 2007 445,120 NA - NA 20,000,000 21,133,903 10,323,859 1,329,320 11,653,179 272,586 NA 10.6% 1.6 Note: Report excludes funds that are not required to comply with Section 7514.7 and have opted not to provide such information upon request. VOLUNTARY DISCLOSURE - Page 5 of 5
ATTACHMENT D PRIVATE REAL ESTATE FUNDS Almanac Realty Securities VI, LP Asana Partners I, LP Berkshire Multifamily Income Realty California Smart Growth IV, LP CIM III, LP CIM Urban REIT, LLC CIM VI-I (Urban REIT), LLC CityView LA Urban Land I, LP Jamestown Premier Property, LP JP Morgan Alternative Property II Prime Property, LLC Principal U.S. Property Separate Account by Remaining Profit 1140 Ave of the Americas 17th Floor New York, NY 10036 2012 86,595-87,540-25,000,000 15,475,571 10,308,109 2,089,016 12,397,125 159,544 NA 16.7% 1.4 1616 Camden Road Suite 210 Charlotte, NC 28203 2016 427,337 NA NA NA 20,000,000 5,411,739 5,546,392-5,546,392 (24,141) NA 12.7% 1.0 601 California Street Suite 1750 San Francisco, CA 94108 2015 1,036,849-24,439 108,833 20,000,000 20,000,000 23,632,834 675,686 24,308,520 - NA 13.6% 1.2 10100 Santa Monica Blvd Suite 1000 Los Angeles, CA 90067 2006 10,212 - - - 30,000,000 31,448,081 7,981,531 6,142,910 14,124,441 341,818 NA 2.4% 1.2 6922 Hollywood Blvd 9th Floor Los Angeles, CA 90028 2007 381,300 - - - 15,000,000 16,763,475 9,343,947 6,912,836 16,256,783 2,513,215 NA 10.6% 1.7 6922 Hollywood Blvd 9th Floor Los Angeles, CA 90028 2014 725,142 - - - 40,000,000 46,417,723 28,408,235 20,857,742 49,265,977 3,056,573 NA 4.8% 1.2 6922 Hollywood Blvd 9th Floor Los Angeles, CA 90028 2012 428,542 - - 257 25,000,000 25,000,000 30,338,695 936,864 31,275,559 - NA 8.4% 1.4 10877 Wilshire Blvd 12th Floor Los Angeles, CA 90024 2007 205,752 - - - 25,000,000 61,459,547 2,388,177-2,388,177 2,475,647 NA 11.8% 1.2 675 Ponce de Leon Av NE 7th Floor Atlanta, GA 30308 2015 1,534,851 11,325 563,199 308,293 50,000,000 50,399,573 47,976,285 5,599,551 53,575,836 (291,842) NA 7.3% 1.1 270 Park Avenue New York, NY 10017 2006 586,263 - - - 25,000,000 25,000,000 222,274 29,175 251,449 341,172 NA -4.3% 0.7 1585 Broadway 37th Floor New York, NY 10036 2015 572,930 - - - 50,000,000 50,000,000 53,326,823 2,044,682 55,371,505 - NA 9.0% 1.1 711 High Street Des Moines, IA 50392 2015 572,420 - - - 50,000,000 50,000,000 56,929,161-56,929,161 NA NA 9.1% 1.1 Note: Report excludes funds that are not required to comply with Section 7514.7 and have opted not to provide such information upon request. VOLUNTARY DISCLOSURE - REAL ESTATE FUNDS Page 1 of 2
ATTACHMENT D PRIVATE REAL ESTATE FUNDS Southern California Smart Growth I The Buchanan V, LLC Tuckerman Residential Income & Value Added, LLC Walton Street Real Estate V, LP by Remaining Profit 10100 Santa Monica Blvd Suite 1000 Los Angeles, CA 90067 2004 - - - - 10,000,000 18,836,734 1,104,802 577,629 1,682,431 - NA -1.8% 1.0 3501 Jamboree Rd Suite 4200 Newport Beach, CA 92660 2006 48,022 3,012 - - 30,000,000 27,000,000 3,588,793 727,091 4,315,884 - NA -0.7% 1.0 4 International Drive Suite 230 Rye Brook, NY 10573 2004 76,289 - - - 25,000,000 26,064,010 7,759,067-7,759,067 NA NA 0.2% 1.0 900 North Michigan Ave Suite 1900 Chicago, IL 60611 2006 132,502 - - - 25,000,000 25,000,001 7,092,540 4,087,052 11,179,592 NA NA -2.5% 0.8 Note: Report excludes funds that are not required to comply with Section 7514.7 and have opted not to provide such information upon request. VOLUNTARY DISCLOSURE - REAL ESTATE FUNDS Page 2 of 2