The biggest

fund investors
in private equity
september 2013 private equity international 29
The LP50
Cheque mates
The LP50 is a unique new ranking developed by PEI to
identify the biggest and most active investors in private
equity funds today
Who are the most significant limited part-
ners in the current private equity market?
Any attempt to answer this question
might consider various factors: total assets
under management, allocations; team size;
geographical reach; thought leadership; co-
investment ability; speed of movement; and
so on.
But the more we thought about it, the
more it seemed to us that by far the most
important metric (particularly in the cur-
rent fundraising climate) was this: how
actively is that LP committing capital to
private equity firms at the moment?
This thought led us to develop the LP50
– a unique new ranking of the biggest and
most active investors in the business, as
measured by the amount of capital they
committed to third-party-managed funds
in the preceding one-year period.
$75.2bn*
Total capital committed to private equity
by the LP50 during the qualifying period
$5.7trn
Total AUM of the LP50
*
Since we’ve included the biggest fund of funds
managers in the main ranking, we recognise this
raises the possibility of double-counting in the
cumulative total. However, we took the view that
there would be relatively little overlap, if any.
30 private equity international september 2 0 1 3
Our Research & Analytics team, which
tracks the activity of fund investors and
managers globally, compiled the ranking.
We began by asking investors around the
globe for the total value of their fund com-
mitments between 1 March 2012 and 28
February 2013; we then ‘trusted but veri-
fied’ the numbers submitted. For those LPs
who release this information publicly, we
calculated the total ourselves and sought to
verify these numbers with the LP directly.
We’ve also focused purely on active
private equity fund investors, so we’ve
tried to exclude all direct, co-investment,
separate account and secondaries activity
in our final numbers. Other strategies such
as infrastructure and real estate were also
off-limits, for obvious reasons.
If we couldn’t confirm the specific fund
investment number (as distinct from the
overall private equity investment figure)
we excluded that institution from the final
ranking. So it’s possible that the LP50 may
exclude some investors who would have
made the list given perfect information.
(We take a look at who some of these might
be on p. 34.)
1 Canada Pension Plan
Investment Board
$3.99bn
Canadian pensions
have been aggressively
changing tack over the
years to do more direct
private equity deals, but
primary fund commit-
ments – and corner-
stone investments, no Wiseman: on top
less – are by no means
off the table for CPPIB.
The institution was the most active fund
investor during the period by a huge
margin, committing nearly $4 billion to
private equity funds. This included ear-
marking $654 million for Behrman Capital’s
$1 billion fund as well as an eye-popping
€650 million commitment to CVC Capital
Partners’ €10.5 billion European fund.
With a minimum commitment size of
$75 million, CPPIB’s Toronto- and London-
based fund investment team, led by CEO
Mark Wiseman, maintains relationships
with more than 80 GPs.
It doesn’t just parachute in to evaluate
emerging markets, either. It’s had a dedi-
cated Asia-Pacific investment team since
2008, having been one of the first large
Western LPs to open a Hong Kong office.
Focused on pan-Asian funds, as well as
country managers in China, Japan, Korea,
India and Australia, CPPIB’s recent commit-
ments in the region included RMB 1,800
million ($295 million; €222 million)to
FountainVest’s second ‘China Growth Fund’
and $300 million to MBK Partners’ third
Korea-, China- and Japan-focused vehicle.
There’s no denying CPPIB’s direct and
co-investments activity continues to grow,
but a meaningful chunk of the $180.2 bil-
lion institution’s 17.8 percent private equity
allocation is still being put to work via tra-
ditional primary fund commitments.

2 APG Asset Management
$3.91bn
Dutch group APG manages €329 billion in
assets for seven Dutch pension funds in the
region. Its private equity arm committed
slightly less than $4 billion to funds during
our qualifying period – much of which was
invested via AlpInvest Partners, the fund
of funds it sold its stake in two years ago.
“In the past, APG outsourced its whole
private equity programme to AlpInvest. In
the future, APG will address some segments
of the private equity market using its inter-
nal management team, but will continue
to partner with AlpInvest for other parts
of the programme,” a spokesperson previ-
ously told PEI.
As part of this effort, it has recruited
several former AlpInvest executives –
including Iain Leigh, who joined as APG’s
head of global private equity in New York,
and Megan Bethke, who was hired as a
senior portfolio manager in June.
3California Public
Employees’ Retirement
System $3.3bn
Yes, it’s scaling back relationships and
making greater use of separate accounts,
but the $254.9 billion public pension
system remains one of the largest backers
of private equity funds around.
Its 12.4 percent private equity alloca-
tion allowed it to commit $3.3 billion to
september 2013 private equity international
a dozen or so private equity funds during
the period, including $50 million to Clear-
lake Capital Partners III, a hybrid debt/
special situations ‘graduate’ from its emerg-
ing managers programme; $400 million to
Riverstone’s fifth global energy fund; $400
million to Cerberus Capital Management’s
latest vehicle; and $500 million to KKR’s
second Asian fund.
In recent years, CalPERS has become
stricter about the terms it is willing to
accept from GPs. But the system remains
enormously influential – particularly in the
emerging manager community, which has
accounted for about 18 percent of all CalP-
ERS’ private equity investments since 2009.
4 Washington State
Investment Board
$3.23bn
WSIB has long been one of the asset class’
biggest supporters. With a 17.5 percent
private equity allocation, the $92 billion
system represents 17 different public pen-
sions for the State of Washington.
Having launched its private equity pro-
gramme in 1981, chief investment officer
Gary Bruebaker stresses the strength of its
relationships with top managers. Roughly
60 percent of its private equity portfolio is
devoted to large-cap buyout/mega-funds,
so it’s perhaps not surprising that among
its commitments during the period were
$400 million each to Silver Lake’s and First
Reserve’s latest global funds. The Fifth
Cinven Fund, KKR’s second Asian fund and
Actis Global 4 were also some of the GPs
to receive WSIB commitments.
The CIO has also revealed that WSIB,
like many big LPs, is currently exploring a
few separate account arrangements with
some of its 37 core GP relationships.
5 Pennsylvania Public
School Employees’
Retirement System $3.17bn
It’s all change at the moment at Pennsyl-
vania PSERS, which this year began its
search for a chief investment officer fol-
lowing the retirement of Alan Van Noord. At
the same time, the system has also started
the process of trying to reduce its private
equity exposure substantially – from a 30
percent allocation to 16 percent over the
next decade. And recent performance has
not been good: its private equity portfolio
returned 2.3 percent during the first quar-
ter of this year, even as its global equities
portfolio returned 7.4 percent.
Nonetheless, none of this has stopped
the system from committing; indeed, it
continues to be one of the most prolific
fund investors in private equity. During our
qualifying period, it committed more than
$3 billion to funds including Catterton and
Coller Capital. It also re-upped $100 mil-
lion each with Bain Capital Fund XI and
New Mountain Partners IV and added three
new relationships to its portfolio: Morgan
Stanley, Triton Partners and HgCapital.
31
6 Teachers Retirement
System of Texas $3.14bn
Texas Teachers is a key
relationship for many
GPs, with a steady com-
mitment pace that’s
expected to equate to $3
billion deployed during
2013 alone. During the
Hall: bullish
first quarter, it pledged
$460 million to four
funds, including $150 million to Insight Ven-
ture Partners VIII and €112 million ($149.4
million) to Triton’s fourth vehicle.
Rich Hall took the alternative pro-
gramme’s reins roughly a year ago when
prior head Steve LeBlanc joined the private
sector. Hall’s resolutely bullish on the asset
class. “We know that over the last 12 years
our private equity portfolio has generated
returns that are more than $3 billion higher
than if we had invested that money in the
public stock market,” he told PEI previously.
Like his predecessor, Hall is big on “the
Texas way” of investing. At its heart is a
“premier list” of private fund managers that
TRS has pre-scrutinised and pre-certified
as being top-quartile – and to whom the
bulk of TRS’ private markets capital will
be allocated.
7 Hamilton Lane
$2.3bn
Hamilton Lane is headquartered in Phila-
delphia and started by building relationships
with many of what have become the who’s-
who of US-based private equity investors: the
various state pension plans who were early
embracers of the asset class (after setting up
in 1991, its first client was CalPERS). But the
firm has grown to match the global appetite
of these clients and by a wide margin was the
most active fund of funds manager on this
list in terms of total commitments.
32 private equity international september 2 0 1 3
One hundred percent of its $12.4 billion
in assets under management is allocated
to private equity – and it committed $2.3
billion in the period for this year’s LP50.
8
New York City Employee
Retirement System
$2.1bn
NYCERS manages
$129.4 billion for five
separate city-wide
pension funds, includ-
ing NewYork City Fire
Department Pension
Fund and New York
City Teachers’ Retire- Schloss: overseer
ment System.
During our qualifying period it commit-
ted more than $2 billion to private equity
funds, including large-cap groups like Silver
Lake and Nautic Partners.
The bad news for NYCERS this year was
the loss of its private equity head, Barry Miller,
who left to join Landmark Partners after just
two years with the system (Landmark has
just launched a $25 million co-investment
fund with the pension system). The search
is on for Miller’s replacement, but don’t hold
your breath. Before Miller joined in 2011,
Larry Schloss, the chief executive officer in
the Comptroller’s office, had been overseeing
the portfolio for a year – and before that, the
position had been vacant for six years.
9
Florida State Board of
Administration $2.07bn
The Tallahassee-based system Florida SBA
has $133.9 billion in assets under manage-
ment, and an allocation to private equity of
just under 5 percent.
Its LP50 total is broadly in line with
its previously stated aim of committing $6
billion to alternative investments over the
course of the next three years (in 2012 it
Tallahassee: managing $133.9bn
committed $1 billion; it’s currently on track
to do at least $2 billion in 2013).
The system committed $2.07 billion to
private equity during the qualifying period
to funds including Advent International GPE
VII, as well as Silver Lake IV ($100 million)
andTowerBrook Investors IV ($190 million).
Florida, too, has suffered from staff turn-
over in its alternatives programme. After
11-year veteran Jim Treanor left to join the
private sector several years ago, it launched a
review of its investment staff’s compensation
structure, which may include performance-
based incentive pay in an effort to retain talent.
10 SAFE Investment
Company $2bn
China’s State Administration of Foreign
Exchange operates as a private sovereign
wealth fund via its Hong Kong branch. It’s
the third largest of the SWFs included on
this list, with assets under management of
about $568 billion. About 5 percent of the
country’s $3.3 trillion in foreign-exchange
reserves is allocated to private equity.
SAFE, which was founded in 1997, also
has a New York office that focuses on pri-
vate equity and real estate assets – which
are intended to help SAFE minimise its
exposure to US government debt. Three
other sovereign wealth funds operate under
China’s SAFE, but they aren’t as large as the
SAFE Investment Company, according to
the Sovereign Wealth Fund Institute.
SAFE committed $2 billion to private
equity funds during our qualifying period.
11 California State Teachers’
Retirement System $1.95bn
The largest public
Oaktree, Silver Lake, Advent and Citic are
among the GPs it lists on its website as 18 State of Wisconsin
Investment Board $1.5bn
Voted LP of the Year for North America in
‘sample’ relationships it maintains.
teachers’ pension last year’s PEI Awards,Wisconsin has been a

15
fund in the US allo- Pensioenfonds Zorg en prominent critic of some of the industry’s
cates 12.8 percent to Welzijn $1.57bn largest firms, declaring a preference for
private equity. During This low-key Netherlands-based system the mid-market and putting its mega-fund
the period, CalSTRS focus primarily on the transport and utili- interests on the auction block. Mid-market
committed $1.95 bil- ties sectors. special situations firm Clearlake Capital was
Ailman: still positive
lion to private equity, among those to receive fresh commitments

including $250 million
to its emerging managers programme.
In its last fiscal year, CalSTRS’ private
equity returns hit 13.9 percent, even edging
out near-neighbour CalPERS. And while it
may have underperformed its short-term
benchmark slightly, chief investment officer
Chris Ailman told PEI recently that he’s
“totally bullish” on private equity.
16
University of Texas during the LP50 period.
Investment Management
Company $1.56bn
More than a quarter of UTIMCO’s $21.4 19 Government Employees
Pension Fund $1.45bn
South Africa’s largest pension system has a
billion in AUM is invested in private equity.
During the period, it committed to Victoria relatively small allocation to private equity
South America Partners, a fund managed by – 1.15 percent of its assets – but it still
Buenos Aires-based Victoria Capital Part- managed to put almost $1.5 billion to work
ners, and Ford Financial, a Dallas-based during the period.
financial services specialist.

12 National Pension Service

20 New York State Common

of Korea $1.78bn
The $320 billion NPS has been investing in
alternatives since 2002 and expects to have
a 16 percent allocation to private equity,
infrastructure and real estate by 2016.
During the LP50 period, it committed
$1.78 billion to funds including SK Incheon
Refinery Investment Fund, a local energy
vehicle, and Posco Woori EIG Global, a local
natural resources and steel fund.
17
Australia Future Fund
$1.51bn
The seven-year old sovereign wealth fund,
which has $87.2 billion in assets under
management, invests in a select number of
managers including FountainVest, Oaktree,
Horsley Bridge, Adams Street, Hellman &
Friedman, Nordic and Advent.
The Top 10 Funds of Funds
Fund $1.41bn
This $160.4 billion New York fund con-
tinued to be a big fund investor during
our qualifying period – but for how much
longer? It’s currently in the middle of a
reorganisation that it hopes will allow it
to invest in fewer primary funds, instead
putting its money to work via funds of
funds or separate accounts.

13 Public Sector Pension

Investment Board $1.77bn
Institution

1 Hamilton Lane
TOTAL
COMMITTED

$2.30bn
21 Minnesota State Board
of Investment $1.35bn
The $65 billion system’s investments during
One of Canada’s largest investment manag- 2 Adams Street Partners $1.36bn the period included a $200 million re-up
ers, PSP Investments has an allocation of to Advent International GPE VII and a
3 Neuberger Berman $1.10bn
about 9 percent to private equity. It com- $100 million commitment to Silver Lake
4 Pantheon $920m
mitted $1.77 billion during the period. Partners IV.
5 Abbott Capital Management $780m

14 Universities
Superannuation
Scheme $1.7bn
6 SL Capital Partners

7 Commonfund Capital
$410m

$343m
The second largest pension fund in the UK 8 Portfolio Advisors $342m
plans to increase its co-investment activity, 9 Danske Private Equity $310m
but it still committed $1.7 billion to pri-
10 Access Capital Partners $305m
vate equity funds during the period. CVC,
22 Adams Street Partners
$1.36bn
The Chicago-based fund of funds manager
committed to managers including North
American-focused TriVest Fund V, Water
Street Healthcare Partners III and Mainsail
Partners III during the period.

september 2013 private equity international 33

23 European Investment
Fund $1.35bn
With the backing of the European Invest-
ment Bank, the European Commission,
EU Member States and other third par-
ties, EIF made $1.35 billion in commit-
ments to firms including Warsaw-based
Enterprise Investors and the UK’s North-
Edge Capital.
25 Oregon Public Employees’
Retirement System $1.28bn
The $62.3 billion pension fund plans to up
27
Massachusetts Pension
Reserves Investment
Management Board
its PE allocation from 16 to 20 percent over $1.2bn
the next three to five years – which could MassPRIM is honing a strategy that will
see it place higher in our next ranking if all allow it to commit up to $1 billion to pri-
that capital goes toward fund commitments. vate equity per year. Commitments during
the LP50 period included $100 million to
26 La Caisse de dépôt et
placement du Québec
TowerBrook and $150 million to Wayzata
Investment Partners.

24 New York State Teachers’

Retirement System $1.3bn
The $88 billion pension counts more than
77 GPs in its portfolio. In the first quarter
of 2013 it committed $15 million to Spark
Capital, $150 million to Pine Brook and
$85 million to KKR Asia Fund II.
$1.25bn
The Canadian system plans to increase its
allocation – though this could mean more 28 Michigan Department of
Treasury $1.2bn
separate accounts, CEO Roland Lescure has The Lansing-based system committed
said. As of 31 December, about 55 percent $1.2 billion to private equity funds during
of La Caisse’s private equity portfolio was the period – including Apax VIII and
direct investments and the balance in funds. Nordic VIII.

29
Notable by their absence University of California
Regents Endowment
Here are some big LPs that may have made the list, but declined to
Fund $1.16bn
provide or confirm figures about their fund investment activity
With $80.1 billion in
Sovereign wealth funds are an increasingly important source of capital for private equity,
assets under man-
although they are often reluctant to supply specific information about their investments.
agement, the Uni-
The Abu Dhabi Investment Authority, a United Arab Emirates sovereign wealth
versity of Califor-
fund, commits between $3 billion and $5 billion annually to private equity – although
nia system’s endow-
it’s apparently now trying to reduce its externally-managed assets. Then there’s the
ment is the largest
Kuwait Investment Authority, which puts about $1 billion to work each year. It
of its kind on this list
doesn’t normally bother signing cheques any smaller than $200 million.
and committed over $1 billion during the
Asian sovereign funds are also very active, in the region and beyond. The Gov-
period to strategies including distressed
ernment of Singapore Investment Corporation, which manages the repub-
debt and energy.
lic’s foreign reserves, is set to open an office in Brazil next year, to manage its Latin
American fund investments, while compatriot Temasek Holdings (which has a 27
percent alternatives allocation) also plans to increase its exposure in LatAm. In China,
the behemoth is the China Investment Corporation, whose AUM was $575 bil-
30 British Columbia
Investment Management
Corporation $1.15bn
lion in 2012, although the Hong Kong Monetary Authority is also ramping up
The Canadian organisation’s allocation to
its allocation to private equity, with a focus on Asia-Pacific funds. Finally the Korea
private equity currently stands at about 4.6
Investment Corporation has about $56.6 billion in assets, although it’s increasingly
percent and its commitments topped $1.15
focused on direct and co-investment opportunities.
billion during the period.
Away from the sovereigns, one notable absentee is the Ontario Teachers’ Pension
Fund, which pledged $3.8 billion to the asset class during the period across all its
primary, secondary, direct and co-investment activity. And then there’s The Harvard
Management Company, which recently saw the departure of well-regarded invest-
31 New Jersey Division of
Investment $1.12bn
It’s been making noise about doing more
ment chief Peter Dolan. The endowment has generally been pretty cautious about the
directs to reduce fees, but New Jersey’s still
asset class, but it did up its allocation by 3 percent this year. On the fund of funds side,
busy making commitments. Managers it
both AlpInvest and BlackRock declined to participate.
backed included Silver Lake and Anacap.

34 private equity international september 2 0 1 3

32 Metropolitan Life
Insurance Company $1.1bn
The highest-ranked insurance company
on the LP50, MetLife has $415.4 billion
in assets under management and commit-
ted about $1.1 billion during the period.
32 Neuberger Berman
$1.1bn
Funds of funds manager Neuberger Berman
committed $1.1 billion to funds during the
period, including Vista Equity Partners.
34 Texas County and District
Retirement System $1.04bn
The system com-
mitted more than
$1 billion to GPs
including Water
Street, Resource
Capital and Spark
Capital, and plans
to keep it coming: it raised its target alloca-
tion to 10 percent from 6.8 percent.
35 Teachers’ Retirement
System of Illinois $1.04bn
Illinois Teachers committed $1.04 billion to
funds including Clearlake Capital Partners
III and NGP Natural Resources X.
36 Pantheon
$920m
The UK fund of funds manager, led by man-
aging partner Paul Ward, invested $920 mil-
lion in funds like HgCapital Mercury and
Deutsche Beteiligungs’ sixth vehicle.
37 Los Angeles County
Employees Retirement
Association $900m
LACERA boosted its private equity invest-
ments by 140 percent from last year and
plans to commit $1.8 billion in 2013.
Mangers it backed during the LP50 period
included Riverside and Noridc.
september 2013 private equity international
38 Allianz Group
$820m
The big German insurer currently has a
1 percent allocation to private equity, but
possibly not for long – after it has fully
invested its most recent fund of funds, it
has no plans to raise another.
39 Abbott Capital
Management $780m
The fund of funds committed $780 mil-
lion mainly to North American funds during
the period. GPs backed by Abbott in recent
years include Riverside, GTCR Golder
Rauner, Canaan Partners and First Reserve.
40 Ilmarinen Mutual Pension
Insurance Company $750m
Helsinki-based Ilmarinen looks after about
one-third of the employment pension market
in Finland. It began investing in private equity
in 1994 and since then it has committed to
Silver Lake and Nordic, among others.
41 CNP Assurances
$730m
BC Partners’, Equistone’s and Demeter’s
new funds are among the latest additions
to the portfolio of CNP, a French insurer.
42 Skandia Life
$720m
This Nordic LP’s relationships include EQT,
Arsenal and Sofinnova Capital.
43 Virginia Retirement
System $670m
About 8.3 percent of the pension’s AUM is
dedicated to private equity. It made com-
mitments to GPs including Nordic.
44 New Mexico State
Investment Council $650m
The $16.27 billion system backed funds
including EnCap, Towerbrook, Asia Alter-
natives and Coller International.
45 Alaska Permanent Fund
$640m
The oil- and gas-focused sovereign wealth
fund allocates 4.4 percent of its $43.9 billion
AUM to private equity. It’s currently making
moves to form strategic relationships with
major GPs, like The Carlyle Group, in the
hope of tapping into their access to dealflow
in the natural resources and energy space.
46 State Teachers
Retirement System of
Ohio $620m
This year, Ohio Teachers’ additions to its
portfolio included Cinven and Warburg
Pincus.
47 The Wellcome Trust
$600m
This $24 billion endowment has one of the
largest PE allocations among its kind – 28
percent – although it is favouring directs.
48 International Finance
Corporation $550m
Among the commitments the organisa-
tion made was $20 million to Armstrong
Asset Management’s Southeast Asia-focused
clean energy fund and $25 million to Indian
SME-focused Lighthouse Funds.
49 University of Michigan
$450m
During our period the $9.1 billion endow-
ment committed to Advent International
GPE VII, Ford Financial’s second vehicle and
the fourth fund of Huron Capital, a Detroit-
based lower mid-market fund.
50 San Francisco
Employees’ Retirement
System $440m
San Francisco made $440 million in com-
mitments during the LP50 qualifying
period to managers including TowerBrook
Capital and Battery Ventures.
35