dahab associates
TRANSCRIPT
FRANKLIN-PRIVATE EQUITY-10_20_09
DDAHABAHAB A ASSOCIATESSSOCIATES, I, INCNC..IINVESTMENTNVESTMENT M MANAGERANAGER R REQUESTEQUEST FORFOR P PROPOSALROPOSAL - 2009 - 2009
PPRIVATERIVATE E EQUITYQUITY F FUNDUND--OFOF-F-FUNDSUNDS - S - SECONDARIESECONDARIES
TTHEHE C CITYITY OFOF F FRANKLINRANKLIN E EMPLOYEESMPLOYEES P PENSIONENSION F FUNDUND
I. INTRODUCTION
The City of Franklin Employees’ Pension Fund located in Franklin, Tennessee, is conducting a private equity secondaries fund-of-funds manager search under the guidance of their investment consultant, Barry Bryant, CFA. The Plan has approximately $33 million in total assets. The amount of this search is $1 million - 2 million. All proposals will be evaluated by the investment consultant and recommendations will be made to the Trustees of the Board. The final decision will be made by the Trustees.
II. TIMETABLE
DATE PROPOSALS ARE DUE : OCTOBER 20, 2009, 5 PM EST
FINAL PRESENTATIONS : NOVEMBER 16, 2009
III. CRITERIA
1. The firm must have at least three (3) years of private equity experience.
2. The firm must have a minimum of $500 million in assets under management.
3. Continuity of the team responsible for the performance record submitted.
IV. PROPOSAL FORMAT/SUBMISSION
PLEASE INCLUDE THE FOLLOWING DOCUMENTS :
1. A cover letter signed by the individual authorized to bind the firm contractually. The letter should be brief and indicate the specific search for which the proposal is intended. It should name the strategy under consideration and the portfolio manager responsible for the performance. Indicate how long that person has been in that position. Any changes within the last year or contemplated within the year with respect to the firm, the ownership structure, or personnel should be explained. Also, state that the proposal is irrevocable for 120 days. The letter should name the investment vehicle(s) available for investment by the qualified and nonqualified funds.
2. Submit one (1) unbound, printed Proposal (attached) accompanied by a copy on CD/DVD.
3. Submit an electronic copy of the firm’s Form ADV Parts I and II on CD/ DVD only.
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4. The fee proposal is to be included in the completed Proposal (Section IX).
5. Identify the search on the outside of the box used for shipping. Indicate the type of search and the name of the client.
The proposal package including the cover letter, proposal, and electronic copy of Form ADV Parts I and II should be sent to:
1 UNBOUND ORIGINAL & 1 COPY ON CD/DVD SHOULD BE SENT TO:
MR. DAVID LEE, CFADIRECTOR OF MANAGER RESEARCH
DAHAB ASSOCIATES, INC.423 SOUTH COUNTRY ROAD
BAY SHORE, NEW YORK 11706
The Plan reserves the right to accept or reject any or all proposals or any parts thereof, and to waive any formalities in the submission of proposals if it is deemed in the best interests of the Plan to do so.
If there are any questions with respect to this investment manager search please contact:
Mr. Barry Bryant, CFA at 631-665-6181 or via email, [email protected].
TTHEHE DEADLINEDEADLINE FORFOR SUBMISSIONSUBMISSION OFOF PROPOSALSPROPOSALS ISIS: : 5:00 PM, O5:00 PM, OCTOBERCTOBER 20, 2009. 20, 2009.
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DDAHABAHAB A ASSOCIATESSSOCIATES, I, INCNC..IINVESTMENTNVESTMENT M MANAGERANAGER R REQUESTEQUEST FORFOR P PROPOSALROPOSAL - 2009 - 2009
PPRIVATERIVATE E EQUITYQUITY F FUNDUND--OFOF-F-FUNDSUNDS - S - SECONDARIESECONDARIES
TTHEHE C CITYITY OFOF F FRANKLINRANKLIN E EMPLOYEESMPLOYEES P PENSIONENSION F FUNDUND
CCOMPANYOMPANY N NAMEAME
IINVESTMENTNVESTMENT S STYLETYLE
PPRODUCTRODUCT N NAMEAME
PPRINCIPALRINCIPAL A ADDRESSDDRESS
TTELEPHONEELEPHONE N NUMBERUMBER
EEMAILMAIL A ADDRESSDDRESS
IINDIVIDUALNDIVIDUAL C COMPLETINGOMPLETING THISTHIS RFP RFP
PPOSITIONOSITION
MMAILINGAILING A ADDRESSDDRESS ((IFIF DIFFERENTDIFFERENT FROMFROM ABOVEABOVE))
TTELEPHONEELEPHONE N NUMBERUMBER ((IFIF DIFFERENTDIFFERENT FROMFROM ABOVEABOVE))
FFAXAX N NUMBERUMBER
DDATEATE C COMPLETEDOMPLETED
IINN ADDITIONADDITION TOTO AA HARDHARD COPYCOPY, , PLEASEPLEASE SUBMITSUBMIT ANAN ELECTRONICELECTRONIC VERSIONVERSION OFOF THISTHIS QUESTIONNAIREQUESTIONNAIRE ONON AA CD/DVD CD/DVD ININ M MICROSOFTICROSOFT W WORDORD® ® FORMATFORMAT..
PPLEASELEASE BEBE SURESURE TOTO INCLUDEINCLUDE ANAN ELECTRONICELECTRONIC COPYCOPY OFOF YOURYOUR FIRMFIRM’’SS LATESTLATEST FFORMORM ADV P ADV PARTSARTS I & II I & II ONON AA CD/DVD. CD/DVD.
PPLEASELEASE DODO NOTNOT SUBMITSUBMIT AA HARDHARD COPYCOPY OFOF YOURYOUR FIRMFIRM’’SS F FORMORM ADV. ADV.
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FFIRMIRM N NAMEAME
I.I. SSUMMARYUMMARY
GGENERALENERAL I INFORMATIONNFORMATION::
FFIRMIRM N NAMEAME
PPRODUCTRODUCT N NAMEAME
LLOCATIONOCATION OFOF H HEADQUARTERSEADQUARTERS
SSTATETATE THETHE P PARENTARENT C COMPANYOMPANY OROR IFIF I INDEPENDENTNDEPENDENT
TTAXAX-E-EXEMPTXEMPT P PRIVATERIVATE E EQUITYQUITY A ASSETSSSETS U UNDERNDER M MANAGEMENTANAGEMENT
TTOTALOTAL P PRIVATERIVATE E EQUITYQUITY A ASSETSSSETS U UNDERNDER M MANAGEMENTANAGEMENT
YYEAREAR F FOUNDEDOUNDED
YYEAREAR R REGISTEREDEGISTERED
CCONTACTONTACT N NAMEAME
CCONTACTONTACT N NUMBERUMBER
CCONTACTONTACT E EMAILMAIL
FFUNDUND I INFORMATIONNFORMATION::
PPRODUCTRODUCT N NAMEAME
CCURRENTURRENT A ASSETSSSETS ININ F FUNDUND
TTARGETARGET SIZESIZE OFOF THETHE F FUNDUND
L LEGALEGAL S STRUCTURETRUCTURE OFOF P PRODUCTRODUCT
IINVESTMENTNVESTMENT A ALLOCATIONLLOCATION (%) (%) (B(BUYOUTUYOUT, V, VENTUREENTURE C CAPITALAPITAL, , ETCETC.).)
SSECONDARIESECONDARIES (%) (%)
CCOO-I-INVESTMENTSNVESTMENTS (%) (%)
GGEOGRAPHICEOGRAPHIC A ALLOCATIONLLOCATION (%) (%)
NNUMBERUMBER OFOF M MANAGERSANAGERS ININ THETHE P PRODUCTRODUCT
LLEVERAGEEVERAGE ATAT THETHE F FUNDUND L LEVELEVEL
BBENCHMARKENCHMARK
VVINTAGEINTAGE Y YEAREAR
EEXPECTEDXPECTED L LIFEIFE OFOF T THEHE F FUNDUND
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II.II. FFIRMIRM A AFFILIATIONFFILIATION
1.1. IISS THETHE FIRMFIRM INDEPENDENTINDEPENDENT??
2.2.IISS THETHE FIRMFIRM REGISTEREDREGISTERED UNDERUNDER THETHE I INVESTMENTNVESTMENT A ADVISORSDVISORS A ACTCT OFOF 1940?1940?
3.3. IISS THETHE FIRMFIRM REGISTEREDREGISTERED WITHWITH THETHE FSA? FSA?
4.4.IISS THETHE FIRMFIRM REGISTEREDREGISTERED WITHWITH OTHEROTHER REGULATORYREGULATORY AGENCIESAGENCIES? I? IFF YESYES, , PLEASEPLEASE PROVIDEPROVIDE FURTHERFURTHER DETAILSDETAILS..
5.5.IISS THETHE FIRMFIRM MINORITYMINORITY OWNEDOWNED? I? IFF SOSO, , WHATWHAT PERCENTPERCENT??
6.6. IISS THETHE FIRMFIRM WOMENWOMEN OWNEDOWNED? I? IFF SOSO, , WHATWHAT PERCENTPERCENT??
7.7. IISS THETHE FIRMFIRM AA SUBSIDIARYSUBSIDIARY OFOF, , OROR RELATEDRELATED ININ ANYANY WAYWAY TOTO::
AA BROKERAGEBROKERAGE FIRMFIRM
ANAN INSURANCEINSURANCE COMPANYCOMPANY
AA BANKBANK
OTHEROTHER
8.8. WWHATHAT ISIS THETHE NAMENAME OFOF THETHE PARENTPARENT COMPANYCOMPANY??9.9. IIFF THETHE FIRMFIRM ISIS RELATEDRELATED ININ ANYANY FASHIONFASHION ( (FINANCIALLYFINANCIALLY OROR OTHERWISEOTHERWISE) ) TOTO ANYANY OTHEROTHER ENTITYENTITY, , EXPLAINEXPLAIN..
10.10. PPLEASELEASE PROVIDEPROVIDE DETAILSDETAILS ONON THETHE FINANCIALFINANCIAL CONDITIONCONDITION OFOF THETHE FIRMFIRM ( (EE..GG., ., MOSTMOST RECENTRECENT ANNUALANNUAL REPORTREPORT).).
11.11. PPLEASELEASE PROVIDEPROVIDE DETAILSDETAILS OFOF THETHE OWNERSHIPOWNERSHIP STRUCTURESTRUCTURE OFOF THETHE FIRMFIRM..
III.III. GGENERALENERAL B BACKGROUNDACKGROUND I INFORMATIONNFORMATION
1.1. PPLEASELEASE INDICATEINDICATE THETHE TYPESTYPES OFOF ACCOUNTSACCOUNTS THATTHAT YOURYOUR FIRMFIRM CURRENTLYCURRENTLY MANAGESMANAGES::
SSEPARATELYEPARATELY M MANAGEDANAGED
CCOMMINGLEDOMMINGLED F FUNDUND
DDOMESTICOMESTIC F FUNDUND
OOFFSHOREFFSHORE F FUNDUND
OOTHERTHER
2.2. PPLEASELEASE GIVEGIVE AA BRIEFBRIEF HISTORYHISTORY OFOF THETHE FIRMFIRM..
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3.3. WWHENHEN WASWAS THETHE FIRMFIRM FOUNDEDFOUNDED??
4.4. WWHENHEN WASWAS ITIT REGISTEREDREGISTERED ASAS ANAN INVESTMENTINVESTMENT ADVISORADVISOR??
5.5. WWHENHEN DIDDID THETHE FIRMFIRM BEGINBEGIN TOTO MANAGEMANAGE TAXTAX--EXEMPTEXEMPT ACCOUNTSACCOUNTS??
6.6. HHOWOW OFTENOFTEN AREARE YOURYOUR FINANCIALFINANCIAL STATEMENTSSTATEMENTS REVIEWEDREVIEWED BYBY EXTERNALEXTERNAL AUDITORSAUDITORS? ?
7.7. HHASAS THETHE FIRMFIRM CHANGEDCHANGED AUDITORSAUDITORS ININ THETHE PASTPAST THREETHREE YEARSYEARS? I? IFF SOSO, , PLEASEPLEASE EXPLAINEXPLAIN..
8.8. DDETAILETAIL THETHE LEVELLEVEL OFOF FIDUCIARYFIDUCIARY LIABILITYLIABILITY COVERAGECOVERAGE THETHE FIRMFIRM HASHAS FORFOR FIDELITYFIDELITY BONDSBONDS, , ERRORSERRORS & & OMISSIONSOMISSIONS, , OROR ANYANY OTHEROTHER FIDUCIARYFIDUCIARY LIABILITYLIABILITY COVERAGECOVERAGE..
9.9. IISS THETHE FIRMFIRM OROR ANYANY PRINCIPALPRINCIPAL OFOF THETHE FIRMFIRM NOWNOW THETHE SUBJECTSUBJECT OFOF AA SEC SEC OROR OTHEROTHER REGULATORYREGULATORY BODYBODY SANCTIONSANCTION? I? IFF SOSO, , EXPLAINEXPLAIN..
10.10. HHASAS THETHE FIRMFIRM OROR ANYANY PRINCIPALPRINCIPAL OFOF THETHE FIRMFIRM EVEREVER BEENBEEN THETHE SUBJECTSUBJECT OFOF AA SEC SEC OROR OTHEROTHER REGULATORYREGULATORY BODYBODY SANCTIONSANCTION? I? IFF SOSO, , EXPLAINEXPLAIN..
11.11. DDISCUSSISCUSS, , ININ DETAILDETAIL, , ANYANY LITIGATIONLITIGATION BROUGHTBROUGHT AGAINSTAGAINST THETHE FIRMFIRM ININ THETHE LASTLAST FIVEFIVE (5) (5) YEARSYEARS..
12.12. PPROVIDEROVIDE AA BREAKDOWNBREAKDOWN OFOF ASSETSASSETS BYBY INVESTMENTINVESTMENT STRATEGYSTRATEGY ( (ASAS OFOF THETHE MOSTMOST RECENTRECENT QUARTERQUARTER ENDEND).).
IINVESTMENTNVESTMENT S STRATEGYTRATEGY # # OFOF A ACCOUNTSCCOUNTS MMARKETARKET V VALUEALUE ( (MMMM))
13.13. PROVIDEPROVIDE AA BREAKDOWNBREAKDOWN OFOF THETHE FIRM’SFIRM’S ACCOUNTSACCOUNTS & & ASSETSASSETS ININ THETHE FOLLOWINGFOLLOWING TABLETABLE::
U.S. DU.S. DOMICILEDOMICILED # # OFOF A ACCOUNTSCCOUNTS (C(CLIENTSLIENTS))
MMARKETARKET V VALUEALUE ((MMMM))TTAXAX E EXEMPTXEMPT
ERISAERISA
PPUBLICUBLIC
TTAFTAFT-H-HARTLEYARTLEY
EENDOWMENTNDOWMENT
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FFOUNDATIONOUNDATION
RRELIGIOUSELIGIOUS O ORDERRDER
CCOMMINGLEDOMMINGLED
OOTHERTHER
TTOTALOTAL T TAXAX-E-EXEMPTXEMPT
TTAXABLEAXABLE A ASSETSSSETS::
PPERSONALERSONAL T TRUSTSRUSTS
CCOMMINGLEDOMMINGLED
TTOTALOTAL T TAXABLEAXABLE
OOVERALLVERALL T TOTALOTAL
NNONON-U.S. -U.S. DDOMICILEDOMICILED
# # OFOF A ACCOUNTSCCOUNTS (C(CLIENTSLIENTS))
MMARKETARKET V VALUEALUE ((MMMM))TTAXAX E EXEMPTXEMPT
ERISAERISA
PPUBLICUBLIC
TTAFTAFT-H-HARTLEYARTLEY
EENDOWMENTNDOWMENT
FFOUNDATIONOUNDATION
RRELIGIOUSELIGIOUS O ORDERRDER
CCOMMINGLEDOMMINGLED
OOTHERTHER
TTOTALOTAL T TAXAX-E-EXEMPTXEMPT
TTAXABLEAXABLE A ASSETSSSETS::
PPERSONALERSONAL T TRUSTSRUSTS
CCOMMINGLEDOMMINGLED
TTOTALOTAL T TAXABLEAXABLE
OOVERALLVERALL T TOTALOTAL
14.14. PPLEASELEASE PROVIDEPROVIDE AA BREAKDOWNBREAKDOWN OFOF THETHE PRODUCT’SPRODUCT’S ACCOUNTSACCOUNTS & & ASSETSASSETS ININ THETHE FOLLOWINGFOLLOWING TABLETABLE::
U.S. DU.S. DOMICILEDOMICILED # # OFOF AACCOUNTSCCOUNTS
MMARKETARKET V VALUEALUE ((MMMM))
UUNDRAWNNDRAWN COMMITMENTCOMMITMENT ((MMMM))TTAXAX-E-EXEMPTXEMPT
ERISAERISA
PPUBLICUBLIC
TTAFTAFT-H-HARTLEYARTLEY
EENDOWMENTNDOWMENT
FFOUNDATIONOUNDATION
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RRELIGIOUSELIGIOUS O ORDERRDER
CCOMMINGLEDOMMINGLED
OOTHERTHER
TTOTALOTAL T TAXAX-E-EXEMPTXEMPT
TTAXABLEAXABLE A ASSETSSSETS::
PPERSONALERSONAL T TRUSTSRUSTS
CCOMMINGLEDOMMINGLED
TTOTALOTAL T TAXABLEAXABLE
OOVERALLVERALL T TOTALOTAL
NNONON-U.S. -U.S. DDOMICILEDOMICILED
# # OFOF AACCOUNTSCCOUNTS
MMARKETARKET V VALUEALUE ((MMMM))
UUNDRAWNNDRAWN COMMITMENTCOMMITMENT ((MMMM))TTAXAX E EXEMPTXEMPT
ERISAERISA
PPUBLICUBLIC
TTAFTAFT-H-HARTLEYARTLEY
EENDOWMENTNDOWMENT
FFOUNDATIONOUNDATION
RRELIGIOUSELIGIOUS O ORDERRDER
CCOMMINGLEDOMMINGLED
OOTHERTHER
TTOTALOTAL T TAXAX-E-EXEMPTXEMPT
TTAXABLEAXABLE A ASSETSSSETS::
PPERSONALERSONAL T TRUSTSRUSTS
CCOMMINGLEDOMMINGLED
TTOTALOTAL T TAXABLEAXABLE
OOVERALLVERALL T TOTALOTAL
15.15. WWHATHAT AREARE THETHE FIRMFIRM’’SS PLANSPLANS FORFOR GROWTHGROWTH OFOF THESETHESE ASSETSASSETS??
16.16. AARERE THERETHERE PLANSPLANS FORFOR LIMITINGLIMITING GROWTHGROWTH ININ ANYANY OFOF THETHE ABOVEABOVE AREASAREAS??
17.17. HHOWOW DOESDOES THETHE FIRMFIRM PLANPLAN TOTO STAFFSTAFF THETHE GROWTHGROWTH OFOF THETHE FIRMFIRM DESCRIBEDDESCRIBED ABOVEABOVE??
18.18. PPROVIDEROVIDE DETAILSDETAILS OFOF THETHE CURRENTCURRENT OFFICESOFFICES ANDAND ANYANY FUTUREFUTURE PLANSPLANS FORFOR EXPANSIONEXPANSION. D. DETAILETAIL THETHE STAFFINGSTAFFING ATAT EACHEACH OFOF THETHE OFFICESOFFICES..
19.19. NNAMEAME THETHE 10 10 LARGESTLARGEST TAXTAX--EXEMPTEXEMPT FUNDSFUNDS, , INCLUDINGINCLUDING THETHE SIZESIZE OFOF THEIRTHEIR INVESTMENTINVESTMENT ININ THETHE PROPOSEDPROPOSED PRODUCTPRODUCT. F. FOROR CLIENTSCLIENTS THATTHAT DECLINEDDECLINED TOTO BEBE NAMEDNAMED, , PLEASEPLEASE INCLUDEINCLUDE ANAN APPROPRIATEAPPROPRIATE
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DESIGNATIONDESIGNATION ( (EE..GG. . PUBLICPUBLIC FUNDFUND ININ C CALIFORNIAALIFORNIA).).
20.20. IINDICATENDICATE THETHE # # OFOF CLIENTSCLIENTS & & ASSETSASSETS OFOF TAXTAX--EXEMPTEXEMPT ACCOUNTSACCOUNTS THETHE FIRMFIRM HASHAS GAINEDGAINED & & LOSTLOST ININ EACHEACH CATEGORYCATEGORY::
21.21. PPLEASELEASE DISCUSSDISCUSS ANYANY UNUSUALLYUNUSUALLY LARGELARGE NUMBERNUMBER OFOF ACCOUNTSACCOUNTS OROR ASSETSASSETS LOSTLOST..
22.22. IINDICATENDICATE THETHE # # OFOF CLIENTSCLIENTS & & ASSETSASSETS OFOF TAXTAX--EXEMPTEXEMPT ACCOUNTSACCOUNTS THETHE PRODUCTPRODUCT HASHAS GAINEDGAINED & & LOSTLOST::
GGAINEDAINED 20052005 20062006 20072007 20082008 20092009
## $$ ## $$ ## $$ ## $$ ## $$
PPUBLICUBLIC
ERISAERISA
TTAFTAFT-H-HARTLEYARTLEY
EENDOWMENTNDOWMENT
FFOUNDATIONOUNDATION
RRELIGIOUSELIGIOUS O ORDERRDER
OOTHERTHER
TTOTALOTAL
LLOSTOST 20052005 20062006 20072007 20082008 20092009
## $$ ## $$ ## $$ ## $$ ## $$
PPUBLICUBLIC
ERISAERISA
TTAFTAFT-H-HARTLEYARTLEY
EENDOWMENTNDOWMENT
FFOUNDATIONOUNDATION
RRELIGIOUSELIGIOUS O ORDERRDER
OOTHERTHER
TTOTALOTAL
23.23. FFOROR THISTHIS P PRODUCTRODUCT, , PLEASEPLEASE DISCUSSDISCUSS ANYANY UNUSUALLYUNUSUALLY LARGELARGE NUMBERNUMBER OFOF ACCOUNTSACCOUNTS OROR ASSETSASSETS LOSTLOST..
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IV.IV. CCHARACTERISTICSHARACTERISTICS OFOF P PROPOSEDROPOSED P PRODUCTRODUCT
1.1. INDICATEINDICATE THETHE TARGETTARGET INVESTMENTINVESTMENT ALLOCATIONALLOCATION FORFOR THETHE SUBMITTEDSUBMITTED PRODUCTPRODUCT. .
BBUYOUTUYOUT
VVENTUREENTURE C CAPITALAPITAL
MMEZZANINEEZZANINE
DDISTRESSEDISTRESSED
SSPECIALPECIAL S SITUATIONSITUATIONS
OOTHERTHER
2.2. DDESCRIBEESCRIBE THETHE LEGALLEGAL STRUCTURESTRUCTURE OFOF THETHE PRODUCTPRODUCT..
3.3. WWHATHAT ISIS THETHE TARGETTARGET SOFTSOFT CLOSECLOSE FORFOR THISTHIS PRODUCTPRODUCT? ?
4.4. PPLEASELEASE DESCRIBEDESCRIBE THETHE PROPOSEDPROPOSED PRODUCTPRODUCT’’SS STRATEGYSTRATEGY..
5.5. WWHENHEN WASWAS THETHE STRATEGYSTRATEGY ESTABLISHEDESTABLISHED ANDAND HASHAS ITIT CHANGEDCHANGED ININ THETHE LASTLAST FIVEFIVE (5) (5) YEARSYEARS??
6.6. DDESCRIBEESCRIBE THETHE FIRMFIRM’’SS COMPETITIVECOMPETITIVE ADVANTAGEADVANTAGE ININ THISTHIS STRATEGYSTRATEGY ANDAND HOWHOW ITIT WILLWILL BEBE SUSTAINEDSUSTAINED..
7.7. DDESCRIBEESCRIBE THETHE MEMBERSMEMBERS OFOF THETHE INVESTMENTINVESTMENT TEAMTEAM ANDAND THEIRTHEIR ROLESROLES ININ MANAGINGMANAGING THISTHIS PRODUCTPRODUCT. .
8.8. PPLEASELEASE PROVIDEPROVIDE THETHE PERCENTAGEPERCENTAGE ANDAND DOLLARDOLLAR AMOUNTAMOUNT INVESTEDINVESTED BYBY THETHE G GENERALENERAL P PARTNERARTNER. .
9.9. WWILLILL THETHE G GENERALENERAL P PARTNERARTNER ACTACT ASAS AA FIDUCIARYFIDUCIARY? H? HOWOW ISIS THETHE G GENERALENERAL P PARTNERARTNER’’SS INTERESTINTEREST ALIGNEDALIGNED WITHWITH THETHE INVESTORSINVESTORS??
10.10. WWHATHAT ISIS THETHE T TARGETARGET VOLATILITYVOLATILITY OFOF THISTHIS PRODUCTPRODUCT??
11.11. DDESCRIBEESCRIBE THETHE USEUSE OFOF LEVERAGELEVERAGE ININ THISTHIS PRODUCTPRODUCT..
12.12. HHOWOW AREARE SECURITIESSECURITIES ININ THETHE PORTFOLIOPORTFOLIO VALUEDVALUED ANDAND HOWHOW FREQUENTLYFREQUENTLY AREARE THEYTHEY VALUEDVALUED??
13.13. HHOWOW FREQUENTLYFREQUENTLY ISIS THETHE PORTFOLIOPORTFOLIO VALUEDVALUED??
14.14. HHOWOW DOESDOES THETHE FIRMFIRM SOURCESOURCE INVESTMENTINVESTMENT OPPORTUNITIESOPPORTUNITIES??
15.15. DDESCRIBEESCRIBE THETHE ASSETASSET ALLOCATIONALLOCATION METHODOLOGYMETHODOLOGY..
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16.16. PPLEASELEASE DESCRIBEDESCRIBE THETHE QUALITATIVEQUALITATIVE & & QUANTITATIVEQUANTITATIVE CHARACTERISTICSCHARACTERISTICS USEDUSED FORFOR PORTFOLIOPORTFOLIO CONSTRUCTIONCONSTRUCTION ININ DETAILDETAIL
17.17. EEXPLAINXPLAIN HOWHOW EXISTINGEXISTING INVESTMENTSINVESTMENTS AREARE MONITOREDMONITORED..
18.18. DDETAILETAIL YOURYOUR PROCESSPROCESS FORFOR SUBSCRIPTIONSSUBSCRIPTIONS ANDAND REDEMPTIONSREDEMPTIONS..
19.19. WWHATHAT INFORMATIONINFORMATION ISIS PROVIDEDPROVIDED TOTO INVESTORSINVESTORS OFOF THISTHIS PRODUCTPRODUCT??
20.20. DDESCRIBEESCRIBE THETHE PERFORMANCEPERFORMANCE MEASUREMENTMEASUREMENT THATTHAT ISIS PROVIDEDPROVIDED TOTO INVESTORSINVESTORS. P. PLEASELEASE INCLUDEINCLUDE COPIESCOPIES OFOF SAMPLESAMPLE REPORTSREPORTS..
21.21. WWILLILL ANAN INVESTORINVESTOR BEBE SUBJECTSUBJECT TOTO UBTI? I UBTI? IFF SOSO, , PLEASEPLEASE ELABORATEELABORATE..
22.22. IIDENTIFYDENTIFY THETHE PROFESSIONALSPROFESSIONALS USEDUSED FORFOR THISTHIS PRODUCTPRODUCT ( (ATTORNEYATTORNEY, , AUDITORAUDITOR, , ETCETC.)..).
23.23. DDESCRIBEESCRIBE THETHE RELATIONSHIPRELATIONSHIP, , IFIF ANYANY, , BETWEENBETWEEN THETHE PROFESSIONALSPROFESSIONALS USEDUSED ININ THISTHIS PRODUCTPRODUCT..
24.24. PPROVIDEROVIDE AA COPYCOPY OFOF THETHE OFFERINGOFFERING MEMORANDUMMEMORANDUM ANDAND//OROR SUBSCRIPTIONSUBSCRIPTION AGREEMENTAGREEMENT FORFOR THETHE PRODUCTPRODUCT..
25.25. PPROVIDEROVIDE THETHE NAMESNAMES, , TITLESTITLES ANDAND CONTACTCONTACT INFORMATIONINFORMATION FORFOR FIVEFIVE (5) (5) REFERENCESREFERENCES FORFOR THETHE PRODUCTPRODUCT..
26.26. DDETAILETAIL THETHE AMOUNTSAMOUNTS INVESTEDINVESTED WITHWITH EACHEACH MANAGERMANAGER ININ THETHE FUNDFUND. A. ARERE THETHE MANAGERSMANAGERS ININ THISTHIS FUNDFUND ALSOALSO REPRESENTEDREPRESENTED ININ OTHEROTHER FUNDSFUNDS MANAGEDMANAGED BYBY THETHE FIRMFIRM? I? IFF SOSO, , HOWHOW MUCHMUCH ( (DOLLARDOLLAR COMMITMENTCOMMITMENT))
27.27. HHOWOW MANYMANY MANAGERSMANAGERS AREARE TYPICALLYTYPICALLY ININ THISTHIS PRODUCTPRODUCT??
28.28. WWHATHAT ISIS THETHE TYPICALTYPICAL TURNOVERTURNOVER OFOF MANAGERSMANAGERS FORFOR THISTHIS PRODUCTPRODUCT? H? HASAS THERETHERE BEENBEEN ANYANY UNUSUALUNUSUAL TURNOVERTURNOVER WITHINWITHIN THETHE PASTPAST THREETHREE (3) (3) YEARSYEARS??
29.29. PPLEASELEASE LISTLIST THETHE MANAGERSMANAGERS ADDEDADDED ANDAND REMOVEDREMOVED FROMFROM THETHE ROSTERROSTER OFOF MANAGERSMANAGERS ININ THISTHIS PRODUCTPRODUCT WITHINWITHIN THETHE LASTLAST THREETHREE YEARSYEARS. I. INCLUDENCLUDE THETHE REASONREASON((SS) ) FORFOR INCLUSIONINCLUSION OROR R REMOVALEMOVAL. .
30.30. WWHATHAT ISIS THETHE MAXIMUMMAXIMUM INVESTMENTINVESTMENT ININ AA SINGLESINGLE MANAGERMANAGER FORFOR THISTHIS PRODUCTPRODUCT??
31.31. PPLEASELEASE PROVIDEPROVIDE THETHE TARGETTARGET INDUSTRYINDUSTRY ALLOCATIONALLOCATION, , COUNTRYCOUNTRY ALLOCATIONALLOCATION ANDAND VINTAGEVINTAGE YEARYEAR ALLOCATIONALLOCATION FORFOR THETHE PRODUCTPRODUCT..
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V.V. DDUEUE D DILIGENCEILIGENCE
1.1. DDESCRIBEESCRIBE THETHE DUEDUE DILIGENCEDILIGENCE PROCESSPROCESS. T. THISHIS SHOULDSHOULD INCLUDEINCLUDE: : AA DETAILEDDETAILED EXPLANATIONEXPLANATION OFOF STAFFSTAFF MEMBERSMEMBERS ANDAND THEIRTHEIR RESPONSIBILITIESRESPONSIBILITIES ININ THETHE PROCESSPROCESS, , CRITERIACRITERIA FORFOR ACCEPTINGACCEPTING OROR REJECTINGREJECTING INVESTMENTSINVESTMENTS, , LEGALLEGAL DUEDUE DILIGENCEDILIGENCE, , USEUSE OFOF ANYANY THIRDTHIRD PARTIESPARTIES, , ETCETC..
2.2. PPLEASELEASE PROVIDEPROVIDE AA COPYCOPY OFOF THETHE FIRMFIRM’’SS PASTPAST TWOTWO (2) (2) YEARSYEARS OFOF DEALSDEALS ANDAND COMMITMENTSCOMMITMENTS..
3.3. PPLEASELEASE PROVIDEPROVIDE AA SAMPLESAMPLE DUEDUE DILIGENCEDILIGENCE QUESTIONNAIREQUESTIONNAIRE..
4.4. PPLEASELEASE PROVIDEPROVIDE AA SAMPLESAMPLE ANALYSISANALYSIS FORFOR ANAN APPROVEDAPPROVED COMMITMENTCOMMITMENT ANDAND ONEONE FORFOR AA DECLINEDDECLINED COMMITMENTCOMMITMENT..
5.5. HHOWOW MANYMANY MANAGERSMANAGERS DOESDOES THETHE TEAMTEAM MEETMEET WITHWITH EACHEACH YEARYEAR (P (PLEASELEASE INDICATEINDICATE IFIF THETHE MEETINGSMEETINGS AREARE HELDHELD ININ THETHE MANAGERMANAGER’’SS OFFICEOFFICE OROR THETHE F FOOF’F’SS OFFICEOFFICE)?)?
6.6. MMUSTUST THETHE TEAMTEAM MEETMEET WITHWITH AA MANAGERMANAGER PRIORPRIOR TOTO INVESTINGINVESTING WITHWITH THEMTHEM??
7.7. WWILLILL THETHE FIRMFIRM INVESTINVEST ININ AA STARTSTART--UPUP PRIVATEPRIVATE EQUITYEQUITY FUNDFUND??
8.8. WWHATHAT ISIS THETHE TYPICALTYPICAL INVESTMENTINVESTMENT COMMITMENTCOMMITMENT ($ ($MMMM ANDAND % % OFOF TOTALTOTAL OFOF THETHE FOF) FOF) TOTO AA PARTNERSHIPPARTNERSHIP??
9.9. DDESCRIBEESCRIBE THETHE MINIMUMMINIMUM CRITERIACRITERIA FORFOR INVESTINGINVESTING ININ AA PRIVATEPRIVATE EQUITYEQUITY FUNDFUND..
10.10. OOFF THETHE FIRMSFIRMS THATTHAT AREARE ANALYZEDANALYZED//INTERVIEWEDINTERVIEWED, , HOWHOW MANYMANY AREARE HIREDHIRED??
11.11. HHOWOW DOESDOES THETHE FIRMFIRM MONITORMONITOR ITSITS INVESTMENTSINVESTMENTS ININ LP LPSS OROR LLC LLCSS??
12.12. HHOWOW MUCHMUCH TRANSPARENCYTRANSPARENCY DODO YOUYOU PROVIDEPROVIDE YOURYOUR CLIENTSCLIENTS??
13.13. WWHATHAT IFIF ANYANY LIQUIDITYLIQUIDITY REQUIREMENTSREQUIREMENTS DODO YOUYOU HAVEHAVE FORFOR MANAGERSMANAGERS??
14.14. PPLEASELEASE DESCRIBEDESCRIBE ANYANY ADVANTAGESADVANTAGES THETHE FIRMFIRM HASHAS ININ GAININGGAINING ACCESSACCESS TOTO TOPTOP PERFORMINGPERFORMING FUNDSFUNDS??
15.15. HHASAS THETHE TEAMTEAM INVESTEDINVESTED ININ ANYANY MANAGERSMANAGERS THATTHAT HAVEHAVE BEENBEEN THETHE SUBJECTSUBJECT OFOF REGULATORYREGULATORY ACTIONACTION??
16.16. HHASAS THETHE TEAMTEAM INVESTEDINVESTED ININ ANYANY MANAGERSMANAGERS THATTHAT HAVEHAVE LOSTLOST MOREMORE THANTHAN 50% 50% OFOF THETHE ASSETSASSETS INVESTEDINVESTED??
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VI.VI. RRISKISK M MANAGEMENTANAGEMENT
1.1. DDESCRIBEESCRIBE THETHE RISKRISK MANAGEMENTMANAGEMENT PROCEDURESPROCEDURES..
2.2. WWHOHO ISIS RESPONSIBLERESPONSIBLE FORFOR RISKRISK MANAGEMENTMANAGEMENT ( (PLEASEPLEASE PROVIDEPROVIDE THEIRTHEIR BACKGROUNDBACKGROUND)?)?
3.3. DDESCRIBEESCRIBE RISKRISK MANAGEMENTMANAGEMENT TECHNOLOGYTECHNOLOGY..
4.4. DDESCRIBEESCRIBE THETHE BACKBACK OFFICEOFFICE PROCEDURESPROCEDURES ANDAND STAFFINGSTAFFING..
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VII.VII. PPERSONNELERSONNEL
1.1. IINN THETHE TABLETABLE BELOWBELOW, , INDICATEINDICATE THETHE APPROPRIATEAPPROPRIATE NUMBERNUMBER OFOF EMPLOYEESEMPLOYEES EMPLOYEDEMPLOYED ININ EACHEACH CATEGORYCATEGORY FORFOR THETHE FIRMFIRM..
20072007 20082008 CCURRENTURRENT
SSENIORENIOR I INVESTMENTNVESTMENT P PROFESSIONALSROFESSIONALS
JJUNIORUNIOR I INVESTMENTNVESTMENT P PROFESSIONALSROFESSIONALS
FFINANCEINANCE/A/ACCOUNTINGCCOUNTING
MMARKETINGARKETING/C/CLIENTLIENT S SERVICESERVICES
IT/TIT/TECHNICALECHNICAL S SUPPORTUPPORT
AADMINISTRATIONDMINISTRATION//SUPPORTSUPPORT
OOTHERTHER
TTOTALOTAL
2.2. IINN THETHE TABLETABLE BELOWBELOW, , PLEASEPLEASE PROVIDEPROVIDE FURTHERFURTHER DETAILSDETAILS OFOF YOURYOUR PROFESSIONALSPROFESSIONALS. . INCLUDEINCLUDE AA DETAILEDDETAILED BIOGRAPHYBIOGRAPHY, , RESPONSIBILITIESRESPONSIBILITIES ANDAND FUNDSFUNDS MANAGEDMANAGED BYBY EACHEACH PERSONPERSON ( (THISTHIS INFORMATIONINFORMATION MAYMAY BEBE INCLUDEDINCLUDED ININ ANAN APPENDIXAPPENDIX). ). INDENTIFYINDENTIFY THETHE PROFESSIONALSPROFESSIONALS WHOWHO WILLWILL BEBE ASSIGNEDASSIGNED TOTO THISTHIS ACCOUNTACCOUNT..
NNAMEAME TTITLEITLE RRESPONSIBILITIESESPONSIBILITIESYYEARSEARS WITHWITH
FIRMFIRM
YYEARSEARS OFOF PPRIVATERIVATE E EQUITYQUITY
EEXPERIENCEXPERIENCE
3.3. IINN THETHE LASTLAST F FIVEIVE (5) (5) YEARSYEARS, , HOWHOW MANYMANY PROFESSIONALSPROFESSIONALS HAVEHAVE LEFTLEFT THETHE FIRMFIRM OROR PRIVATEPRIVATE EQUITYEQUITY GROUPGROUP FORFOR ANYANY REASONREASON? P? PLEASELEASE E ELABORATELABORATE ONON THEIRTHEIR RESPONSIBILITIESRESPONSIBILITIES ANDAND THETHE REASONREASON FORFOR THEIRTHEIR DEPARTUREDEPARTURE.. WWEREERE ANYANY OFOF THETHE DEPARTURESDEPARTURES FROMFROM THETHE INVESTMENTINVESTMENT TEAMTEAM THATTHAT MANAGESMANAGES THETHE PROPOSEDPROPOSED PRODUCTPRODUCT??
4.4. DDESCRIBEESCRIBE THETHE METHODMETHOD OFOF COMPENSATIONCOMPENSATION FORFOR YOURYOUR PROFESSIONALSPROFESSIONALS. P. PLEASELEASE INCLUDEINCLUDE INFORMATIONINFORMATION ONON EQUITYEQUITY OWNERSHIPOWNERSHIP INTERESTSINTERESTS, , CARRIEDCARRIED INTERESTINTEREST, , LONGLONG--TERMTERM INCENTIVEINCENTIVE PLANSPLANS, , ETCETC..
5.5. PPLEASELEASE D DESCRIBEESCRIBE ANYANY NONNON--COMPETECOMPETE CLAUSESCLAUSES THATTHAT EXISTEXIST FORFOR KEYKEY INVESTMENTINVESTMENT PERSONNELPERSONNEL..
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VIII.VIII. PPERFORMANCEERFORMANCE
1.1. IISS THETHE FIRMFIRM ININ COMPLIANCECOMPLIANCE WITHWITH THETHE CFA I CFA INSTITUTENSTITUTE’’SS (AIMR’ (AIMR’SS) ) STANDARDSSTANDARDS??
2.2. PPLEASELEASE PROVIDEPROVIDE DETAILSDETAILS OFOF THETHE INDEPENDENTINDEPENDENT VERIFICATIONVERIFICATION BYBY OUTSIDEOUTSIDE AUDITORSAUDITORS..
3.3.PPLEASELEASE COMPLETECOMPLETE THETHE TABLETABLE WITHWITH INFORMATIONINFORMATION FORFOR THETHE PROPOSEDPROPOSED F FOOF F ASAS WELLWELL ASAS ALLALL PREVIOUSPREVIOUS FFOOF. F.
FFUNDUND--OFOF-F-FUNDSUNDS R RECORDECORD ASAS OFOF 09/30/09 09/30/09 ((IFIF ADDITIONALADDITIONAL ROOMROOM ISIS REQUIREDREQUIRED, , PLEASEPLEASE EXTENDEXTEND THISTHIS CHARTCHART ASAS NECESSARYNECESSARY))
Name of FoF
Fund Size
($mm)Vintage
Year
Fund Type (e.g.
Venture, Buyout,)
# of Investments Cost
Realized Gains/Losses
Unrealized Gains/Losses
Market Value of Invested Assets
Gross IRR
Net IRR
Multiple of Cost
FOF A FOF B FOF C FOF D FOF E
4.4. PPLEASELEASE EXPLAINEXPLAIN ALLALL IRR IRR CALCULATIONSCALCULATIONS ANDAND PROVIDEPROVIDE SUPPORTINGSUPPORTING DATADATA..
5.5. PPLEASELEASE PROVIDEPROVIDE THETHE BENCHMARKSBENCHMARKS FORFOR THETHE SUBMITTEDSUBMITTED PRODUCTPRODUCT ANDAND EXPLAINEXPLAIN WHYWHY THEYTHEY AREARE APPROPRIATEAPPROPRIATE..
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IX.IX. FFEEEE S STRUCTURETRUCTURE
1.1. PPLEASELEASE STATESTATE THETHE FIRMFIRM’’SS FEEFEE STRUCTURESTRUCTURE (I (INCLUDENCLUDE CARRIEDCARRIED INTERESTINTEREST, , PREFERREDPREFERRED RETURNRETURN,, MANAGEMENTMANAGEMENT FEESFEES, , INCENTIVEINCENTIVE FEESFEES, , ETCETC.). .).
2.2. PPLEASELEASE PROVIDEPROVIDE AA SAMPLESAMPLE FEEFEE SCHEDULESCHEDULE FORFOR THETHE LIFELIFE OFOF THETHE FUNDFUND OROR 15 15 YEARSYEARS. E. EXPLAINXPLAIN THETHE ASSUMPTIONSASSUMPTIONS USEDUSED TOTO MAKEMAKE THETHE SCHEDULESCHEDULE..
3.3. IISS THETHE FEEFEE STRUCTURESTRUCTURE NEGOTIABLENEGOTIABLE??
4.4. WWHATHAT ISIS THETHE MINIMUMMINIMUM ACCOUNTACCOUNT SIZESIZE??
5.5. WWHATHAT ISIS THETHE LOCKLOCK--UPUP PERIODPERIOD? ?
6.6. DDESCRIBEESCRIBE YOURYOUR REDEMPTIONREDEMPTION POLICYPOLICY..
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