August 15, 2011 | BUYOUTS | 29www.buyoutsnews.com

Limited Partners That Back Emerging ManagersBelow 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

Size of Program Description Contacts

Bank of America 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.

BAML Capital Access Funds, part of BofA's Global Principal Investments group, manages funds of funds focused on fi 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.

BAML Capital Access FundsMail code: IL1-231-12-34231 South LaSalle StreetChicago, IL 60697

California Public Employees’ Retirement System

At least $4 billion 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 fi rm to manage it so that it complements its other emerging manager program.“

Grove Street Advisors (for CEV funds)20 William Street, Suite 230Wellesley, MA 02481781-263-6100

Capital Link Fund152 W. 57th St., 34th FloorNew York, NY 10019212-792-7552 admin@centinelacapital.com

California State Teachers’ Retirement System

CalSTRS’s $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 fi rst-, second-, and third-time institutional funds; and $375 million with BAML Capital Access Funds.

The Proactive Portfolio private equity program includes the urban/rural investments and emerging managers programs.

Amit Tiwari101 California Street, Suite 1900San Francisco, CA 94111Tel: (415) 445-3387Send PPM to:amit.tiwari@invesco.com

Guillermo Borda, managing director, BAML Capital Access Funds9461 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 fi rms that are Connecticut-based, 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 signifi cant business presence in, or having a genuine business plan to conduct operations in Connecticut.

Horizon: Muller & Monroe Asset Management, LLC.180 North Stetson AvenueSuite 1320Chicago, Illinois 60601312-782-7771

SMMBF: Ashmi MehrotraJPMorgan Private Equity Group270 Park Avenue, 25th Floor New York, N.Y. 10017-2014212-648-2293ashmi.mehrotra”

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.

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.

Kelly Williams, Head of the Customized Fund Investment Group 11 Madison AvenueNew York, N.Y. 10010212-325-2000

Florida State Board of Administration

No dedicated program. Does not have an “emerging manager program,” though it does consider emerging managers. Information on its website – www.sbafl a.com – guides investment managers wishing to be considered when it initiate searches.

Hamilton Lane - c/o PPM RecipientOne Presidential Blvd., 4th FloorBala Cynwyd, PA 19004

Illinois Municipal Retirement Fund

It is the goal of the IMRF Board that, subject to its fi duciary responsibility, not less than 20 percent of actively managed investment assets be managed by fi rms run by minorities, women and people with disabilities.

IMRF policy is to include qualifi ed minority and women-owned business enterprises and businesses owned by persons with disabilities in the fund’s investment manager selection process while objectively evaluating all qualifi ed investment managers.

StreetSuite 3500San Francisco, CA 94111 415.974.5060 http://www.callan.com/

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30 | BUYOUTS | August 15, 2011 www.buyoutsnews.com

Limited Partners That Back Emerging ManagersBelow 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

Size of Program Description Contacts

Los Angeles County Employees Retirement Association

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.

Vehicles must be the GP’s fi rst, second or third funds. Historically, the emerging manager program has had a U.S. focus.

JPMorgan Private Equity Group Sekou H. KaalundHead of Business Developmentsekou.h.kaalund@jpmchase.com(212) 552-4001

Los Angeles Fire and Police Pensions

The pension does not have a specifi c allocation for emerging managers.

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

Portfolio Advisors LLC 9 Old Kings Highway SouthDarien, CT 06820-4505 203-662-3456

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

The goal is to provide returns greater than the traditional private equity program. PRIM seeks to commit up to 20 percent of an emerging fund’s total committed capital.

Mike Langdon, investment offi cer for private equity(617) 946-8426

Muller & Monroe Asset Management LLC

The fi 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.

Funds-of-funds manager Muller & Monroe Asset Management invests primarily in emerging private equity funds. The fi ve fi rm seeks $300 million for its sophomore vehicle, M2 Private Equity Fund of Funds LP III.

Muller & Monroe Asset Management, LLC.180 North Stetson AvenueSuite 1320Chicago, Illinois 60601(312) 782-7771

New York State Common Retirement Fund

$1 billion. Its defi nition 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.

“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).

Muller & Monroe Asset Management, LLC.180 North Stetson AvenueSuite 1320Chicago, Illinois 60601312-782-7771

Parish Capital Has about $2 billion under management. 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 fi rst- and second- time funds with less than $500 million under management.

Charles Merritt 5915 Farrington Road, Suite 202Chapel Hill, NC 27517Phone: +1 919.401.4949

Teachers Retirement System of Illinois

$500 million. 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 fi rms and pays extra attention to fi rms owned by minorities and women to fi nd the next generation of top-tier managers.TRS Illinois staff supervises the selection of fund commitments with the help of PCG Asset Management.

Teachers’ Retirement System of the State of Illinois2815 West Washington StreetSpringfi eld, IL 62702 (217) 753-0370

PCG Asset Management, LLC1200 Prospect Street, Suite 200La Jolla, CA 92037(800) 900-9181

Source: Buyouts Magazine

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