38 | BUYOUTS | November 12, 2012

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Limited Partners That Back Emerging Managers
Below is a selection of limited partners with programs dedicated to backing emerging managers or that evaluate emerging managers without a dedicated program. Backers of Emerging Private Equity Managers Bank of America Size of Program Manages and advises on a little more than $1 billion. Invests between $5 million and $25 million per transaction; avoids funds with less than $50 million in capital; targets venture capital, growth equity, mezzanine, and buyout funds. Description BAML Capital Access Funds manages funds of funds focused on rms raising rst, second, or third-time funds; funds that target companies owned by, managed by or targeted toward women or minorities; companies located in, or employing residents of low and moderate income areas; and funds managed by female and minority investors. CalPERS manages California Emerging Ventures, a series of funds originally dedicated to venture capital but that now include the full range of private equity funds, including emerging managers. CalPERS has committed more than $3.2 billion to the Emerging Ventures funds since 1999. CalPERS also manages Capital Link Fund, a $1 billion fund-of-funds managed by Credit Suisse focused on emerging domestic managers. The INVESCO-managed funds target rst, second, or third-time venture capital and buyout funds. The BAML-managed funds focus on emerging managers that address underserved markets, such as funds that invest in companies managed by women or minorities, or funds that invest in companies located in low or middle-income regions, Contacts Edward Powers, managing director BAML Capital Access Funds 1 Bryant Park New York, N.Y. 10036 646-855-1355 Grove Street Advisors (for CEV funds) 20 William Street, Suite 230 Wellesley, MA 02481 781-263-6100

California Public Employees Retirement System

Has committed $1 billion to emerging managers over the last three years. Since 2009, 18 percent of its commitments to private equity were with emerging managers, according to the pension.

California State Teachers Retirement System

CalSTRS's $1.6 billion private equity "Proactive Portfolio" includes the $550 million "New and Next Generation Managers Fund" program, managed by INVESCO Private Capital, which targets rst-, second-, and third-time institutional funds; and $475 million with BAML Capital Access Funds.

Amit Tiwari, INVESCO 101 California St., Suite 1900 San Francisco, Calif. 94111 415-445-3387 amit.tiwari@invesco.com Edward Powers, managing director BAML Capital Access Funds 1 Bryant Park New York, N.Y. 10036 646-855-1355 Horizon: Muller & Monroe Asset Management LLC 180 North Stetson Avenue, Suite 1320 Chicago, Ill. 60601 312-782-7771 SMMB: Ashmi Mehrotra JPMorgan Private Equity Group 270 Park Ave., 25th Floor New York, N.Y. 10017-2014 212-648-2293 Kelly Williams, Head of the Customized Fund Investment Group Eleven Madison Avenue New York, N.Y. 10010 212-325-2000

Connecticut Retirement Plans and Trust Funds

$155 million.

As of June 30, the Connecticut Horizon Fund private equity program had invested $155 million since inception in 2007. It targets emerging managers, including minority or women-owned, or emerging, and comprises all asset classes. Connecticut also has the $75 Small Middle Market Buyout Fund program, which targets funds based in, having a signicant business presence in, or having a genuine business plan to conduct operations in Connecticut.

Credit Suisse Customized Fund Investment Group

The fund investment and co-investment manager, with more than $29 billion of client commitments under management as of June 30, had more than $5.8 billion in client commitments dedicated to programs targeting small and emerging managers as of June 30.

Credit Suisse Customized Fund Investment Group is an active investor in small and emerging managers. CFIG has a dedicated team of investment professionals who are focused on cultivating relationships with emerging managers and evaluating emerging manager investment opportunities on behalf of the groups institutional clients. CFIG takes a collaborative approach when working with emerging managers, often helping them develop their business plans, investment strategies and approach to fund operations and investor relations functions. Does not have a dedicated emerging manager program, though it does consider emerging managers. Information on its website www.oridagrowthfund. com guides investment managers wishing to be considered when it initiates searches.

Florida Growth Fund

Approximately $200 million.

Hamilton Lane 200 SW 1st Ave. Suite 880 Ft. Lauderdale, FL 33301

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November 12, 2012 | BUYOUTS | 39

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Limited Partners That Back Emerging Managers

Below is a selection of limited partners with programs dedicated to backing emerging managers or that evaluate emerging managers without a dedicated program. Backers of Emerging Private Equity Managers Illinois Municipal Retirement Fund Size of Program It is the goal of the IMRF Board that, subject to its duciary responsibility, not less than 20 percent of actively managed investment assets be managed by rms run by minorities, women and people with disabilities. In 2008, LACERA allocated $150 million to JPMorgan Private Equity Group to identify buyout and venture capital emerging manager investment opportunities, committing no more than $50 million annually over three years. The pension does not have a specic allocation for emerging managers. Description IMRF policy is to include qualied minority and women-owned business enterprises and businesses owned by persons with disabilities in the funds investment manager selection process while objectively evaluating all qualied investment managers. Vehicles must be the GPs rst, second or third funds. Historically, the emerging manager program has had a U.S. focus. Contacts Callan Associates 101 California Street Suite 3500 San Francisco, CA 94111 415-974-5060 http://www.callan.com/ JPMorgan Asset Management Laureen Costa Portfolio Manager Laureen.r.costa@jpmorgan.com 212-648-2309 Jeffrey Gruccio Portfolio Advisors LLC 9 Old Kings Highway South Darien, CT 06820-4505 203-662-8692 Massachusetts PRIM 84 State Street, Suite 250 Boston, MA 02109 617-946-8401 Muller & Monroe Asset Management LLC 180 North Stetson Avenue Suite 1320 Chicago, IL 60601 312-782-7771 Muller & Monroe Asset Management LLC 180 North Stetson Avenue Suite 1320 Chicago, IL 60601 312-782-7771 TorreyCove Capital Partners 4365 Executive Drive Suite 900 San Diego, CA 92121 858-456-6000

Los Angeles County Employees Retirement Association

Los Angeles Fire and Police Pensions

The pension's sole private equity manager, Portfolio Advisors, will review rst and second-time funds for LAFPP, but there is no designated allocation.

Mass PRIM

As of mid-year 2011 was targeting commitments of up to 10 percent of its annual private equity allocation to emerging funds, including venture capital, growth equity and buyout funds. The rm, which is focused on emerging and niche managers, is aiming to raise $300 million to $400 million for M2 Private Equity Fund of Funds LP II, a comingled fund of funds.

The goal is to provide returns greater than the traditional private equity program achieves. PRIM seeks to commit up to 15 percent of an emerging fund's total committed capital. The rm invests primarily in emerging private equity funds.

Muller & Monroe Asset management LLC

New York State Common Retirement Fund

$1 billion, including private equity and other asset classes. Its denition of an emerging manager is one raising Fund I, II or III with assets under $750 million. It has a special emphasis on identifying women and minority managers in this group. $500 million

"The Pioneer Program" to date has allocated at least $750 million of the $1 billion Comptroller Thomas DiNapoli originally committed in 2007. It has allocated $100 million of the $200 million set asside for private equity and is expected to allocate the second tranche by year's end. The Emerging Manager Program typically commits between $50 million and $100 million to private equity anually, and about $15 million to $50 million per manager. The program evaluates emerging managers in buyout, mezzanine and venture capital funds. TRS Illinois seeks to back spin-outs from proven rms and pays extra attention to rms owned by minorities and women to nd the next generation of top-tier managers. TRS Illinois staff supervises the selection of fund commitments with the help of TorreyCove Capital Partners.

Teachers Retirement System of Illinois

Source: Buyouts Magazine