Private Equity Limited Partners by qeb64120

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									   The Private Equity Analyst:
Limited Partners Summit Europe
_____________________________
 Disclosure, Valuation Standards:
 Lessons from the United States
               May 18, 2005

    Presentation by Thomas A. Beaudoin
AGENDA

   Background on Disclosure Debate
   Recent Legal Developments
   Effect on Current Fundraising Environment
   What Next?




                                                2
Background on Disclosure Debate

    Who is disclosing?
     • Public Plans/Public University Endowments
       (Open Records Laws)
     • Publicly Traded Funds of Funds (Exchange
       Rules)
     • Non-US Investors (FOIA equivalent statutes)
     • Unlikely Suspects


                                                     3
Background on Disclosure Debate
    Who is asking?
     • Press
     • Sellers of Information
     • Others
    What could be disclosed?
     • Fund-Level Performance Data
     • Partnership Agreements/Terms
     • Portfolio Company Data
                                      4
Recent Legal Developments

   California: CFAC vs. CalPERS; Legislative
    Initiative
   Texas: Attorney General Controversy; Texas
    Growth Fund Lawsuit; Legislative Initiative
   Illinois: Legislative Initiative
   Legislation Passed in Virginia, Colorado,
    Michigan, Massachusetts


                                                  5
Recent Legal Developments

   UK Legislation
    • Limited Protection
    • Lack of Precedents
   Requests Made to a Widening Net of LPs
   Lack of Predictability: More to Come




                                             6
Effect on Current Fundraising
Environment
    Fewer Public Pension Plans in Top-Tier VCs
    Detailed Confidentiality Provisions and Side
     Letters
     • Define Scope and Use of Information
     • Permitted Disclosure
     • Prior Notification and Ability to Contest
     • Right to Withhold Information
    Forced Withdrawal or Transfer Provisions
                                                    7
What Next?

   Disclosure of “Stale” Portfolio Company
    Data
   Interrelationship between Disclosure and
    Valuation
   Harmonized Disclosure Standards/Formats
   Slow Movement to More Regulated Industry



                                               8

								
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