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August 15, 2011 | BUYOUTS | 29

FEATURE STORY
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. At least $4 billion

Description BAML Capital Access Funds, part of BofA's Global Principal Investments group, manages funds of funds focused on rms that target companies owned by, managed by or targeted toward women or minorities; and companies located in, or employing residents of low-and moderate income areas. CalPERS manages California Emerging Ventures, a series of funds originally dedicated to venture capital but now includes 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 focused on emerging domestic managers. CalPERS also recently announced that it is seeking a new investment vehicle, likely to be a customized fund-of-funds, to invest in emerging managers. It plans to hire a rm to manage it so that it complements its other emerging manager program. The Proactive Portfolio private equity program includes the urban/rural investments and emerging managers programs.

Contacts BAML Capital Access Funds Mail code: IL1-231-12-34 231 South LaSalle Street Chicago, IL 60697

California Public Employees Retirement System

Grove Street Advisors (for CEV funds) 20 William Street, Suite 230 Wellesley, MA 02481 781-263-6100 Capital Link Fund 152 W. 57th St., 34th Floor New York, NY 10019 212-792-7552 admin@ centinelacapital.com

California State Teachers Retirement System

CalSTRSs $1.158 billion private equity Proactive Portfolio includes the $300 million New and Next Generation Managers Fund program, managed by INVESCO Private Capital, which targets rst-, second-, and third-time institutional funds; and $375 million with BAML Capital Access Funds.

Amit Tiwari 101 California Street, Suite 1900 San Francisco, CA 94111 Tel: (415) 445-3387 Send PPM to: amit.tiwari@invesco.com Guillermo Borda, managing director, BAML Capital Access Funds 9461 Wilshire Blvd. Beverly Hills, Ca. 90212 (310) 860-2542

Connecticut Retirement Plans and Trust Funds.

$230 million.

The $155 million Connecticut Horizon Program targets investment management rms that are Connecticutbased, minority or women-owned, or emerging, and comprises all asset classes. Connecticut also has the $75 million 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.

Horizon: Muller & Monroe Asset Management, LLC. 180 North Stetson Avenue Suite 1320 Chicago, Illinois 60601 312-782-7771 SMMBF: Ashmi Mehrotra JPMorgan Private Equity Group 270 Park Avenue, 25th Floor New York, N.Y. 10017-2014 212-648-2293 ashmi.mehrotra Kelly Williams, Head of the Customized Fund Investment Group 11 Madison Avenue New York, N.Y. 10010 212-325-2000 Hamilton Lane - c/o PPM Recipient One Presidential Blvd., 4th Floor Bala Cynwyd, PA 19004 Street Suite 3500 San Francisco, CA 94111 415.974.5060 http://www.callan. com/

Credit Suisse

The fund investment and co-investment manager, with more than $27 billion of client commitments under management as of March 31, 2011, had more than $5.6 billion in client commitments dedicated to programs targeting small and emerging managers as of June 30, 2011. No dedicated program.

Credit Suisse Customized Fund Investment Group targets small and emerging managers. The group takes a collaborative approach with emerging managers, helping them to develop their business plans, strategies, operations, teams and investor relations functions. Does not have an emerging manager program, though it does consider emerging managers. Information on its website www.sbaa.com guides investment managers wishing to be considered when it initiate searches. 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.

Florida State Board of Administration

Illinois Municipal Retirement Fund

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.

30 | BUYOUTS | August 15, 2011

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FEATURE STORY
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 Los Angeles County Employees Retirement Association Size of Program 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 Vehicles must be the GPs rst, second or third funds. Historically, the emerging manager program has had a U.S. focus. Contacts JPMorgan Private Equity Group Sekou H. Kaalund Head of Business Development sekou.h.kaalund@jpmchase. com (212) 552-4001 Portfolio Advisors LLC 9 Old Kings Highway South Darien, CT 06820-4505 203662-3456 Mike Langdon, investment ofcer for private equity (617) 946-8426 Muller & Monroe Asset Management, LLC. 180 North Stetson Avenue Suite 1320 Chicago, Illinois 60601 (312) 782-7771 Muller & Monroe Asset Management, LLC. 180 North Stetson Avenue Suite 1320 Chicago, Illinois 60601 312-782-7771 Charles Merritt 5915 Farrington Road, Suite 202 Chapel Hill, NC 27517 Phone: +1 919.401.4949 Teachers Retirement System of the State of Illinois 2815 West Washington Street Springeld, IL 62702 (217) 753-0370 PCG Asset Management, LLC 1200 Prospect Street, Suite 200 La Jolla, CA 92037 (800) 900-9181

Los Angeles Fire and Police Pensions

The pensions sole private equity manager, Portfolio Advisors, will review rst and second-time funds for LAFPP, but there is no designated allocation. The goal is to provide returns greater than the traditional private equity program. PRIM seeks to commit up to 20 percent of an emerging funds total committed capital. Funds-of-funds manager Muller & Monroe Asset Management invests primarily in emerging private equity funds. The ve rm seeks $300 million for its sophomore vehicle, M2 Private Equity Fund of Funds LP III. The Pioneer Program to date has allocated $750 million of the $1 billion Comptroller Thomas DiNapoli originally committed to investing in 2007. It has also invested an additional $200 million with emerging managers directly (without the use of a fund-of-funds adviser). Typically invests $150 to $200 million a year via three domestic funds of funds and two European funds of funds. About 70 percent of its commitments are to rstand second- time funds with less than $500 million under management. The Emerging Manager Program typically commits between $50-100 million to private equity annually, and about $15 million to $50 million per manager. The program evaluates emerging mangers 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 PCG Asset Management.

Mass PRIM

PRIM targets committing up to 10 percent of its annual private equity allocation to emerging funds.

Muller & Monroe Asset Management LLC

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 III, a comingled fund of funds.

New York State Common Retirement Fund

$1 billion. 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.

Parish Capital

Has about $2 billion under management.

Teachers Retirement System of Illinois

$500 million.

Source: Buyouts Magazine