to were 300 million so far in 2015 has been called. 200 million has come up for a net $100 million outflow. then, to date, 14 funds have been approved for eight or nine and 15 funds have closed for 710 million. so, great performance that stopped working really hard to try to get you up to your target allocation and asset class performing very well. now, i am in a turn it over to david about the market >> hi david -- let me segue to little bit about carrot talked about. among public and convince you of one of the best private equity programs period. which i do dimension that i live it for you back if you took your dollars invested since inception, and had you just invested in the public

equity you would be $2.2 billion worse off. our calculation is that your private equity portfolio has created incrementally $2.2 billion of value for you all. that would have been money otherwise needed to come from other sources rather than your investment gains. so, on a percentage basis, that is meaningful to your overall beneficiaries. let me spend the next few minutes talk about the private equity marketplace. i will start with a fund raising environment. for private equity, 2014 was the best year since 2007 for my fundraising perspective. over $500 billion that raised globally. for several things going on that is causing that to occur. the first is investors are chasing returns. we have a 10 year treasury that 2%, 2.5% handle, it is really hard for investor to find ways

to generate incremental rates of returns and private equity, as we all talk about has been a good performing long-term asset class. so that is captured a lot of investor in touch and. the second piece is that for a lot of investors that it been at this for a while, distributions are outpacing capital calls. they are forced to put more back in. the third piece is that the stock market appreciation has caused most every investor, that is allocated to private equity to be under allocated. so, if you are sticking to and asset allocation model than the markets go up your forced to put more back in. so that starting to occur as well. on the investment side 2014 was a relatively slow year for buyouts. our calculation is that transaction volume was down roughly 30% in the united states. on the venture capital side, rather, it was up meaningfully. it was up in

2013 the dollars invested into the capital was about $30 billion. in 2014 about $50 billion. on the bios side, will would slow down the federal reserve has actually caused commercial banks to tighten up on highly lending. they proposed six times even the multiple limitation. he did a stint for earnings before interest energization -- proximately for casual bag that the limiter some other transactions that were livermore levered leveraged, just go and get on with the bank marketplace. ge capital, general electric is unchecked capital [inaudible] but during that timeframe which was for sale it actually did impact

slow down the bio marketplace that she was simply out of business that had been supplied to a lot of little market trends actors supplier debt capital to a lot of middle-market transactions. the last pieces that when you have a hot stock market and quarter profit is way up, you see a lot of corporate buyers really beat up the buyout competition because there cost of capital is a much lower. so, we saw in 2014 a lot of that occurring where strategic transactions occurred rather than buyouts. under the venture side, venture happens -- venture capital moves and seven to 10 year cycles. this one of best cycles per venture capital. the last two years, last two or three years has been terrific. in many ways, reminiscent of $99 2000. i do not be the -- but valuations are high, due diligence is not being performed as robustly as

it had previously. one example that is uber, its current valuation is worth more than 70% of the company's equity s&p 500 back to me that is pretty astounded by the committee could be worth so much. so valuations are [inaudible] -- are very competitive and money is flowing very aggressively. from an exit perspective, last year was released struggle for ipos. auto the venture side, 89 ipos occurred vs. 50 the prior year. actually, i am sorry. i cannot read my own writing that last year 150 ipos occurred vs. 89 on the previous year on the venture site map. on the buyer side both you said 50 ipos. so the exit market is still robust. people are more enamored with both companies than value companies in this environment. and that is reflected in the venture capital data. so you all do

not have to worry about your private equity portfolio that we worry about what is worrisome today is that private equity investors are selling more than they are buying. we have smart money selling companies, i think, which is the occurred the last couple years and that is reflective of distributions to capital costs, a little bit worrisome. may be signs of a little bit of frosting us out there. is a lot of dry powder. i know you all talked about in previous board meetings is about one $2.2 trillion of capital that is sitting on the sidelines waiting to be put to work. that is a record for the private equity industry that a lot of money out there. there is 2000 firms out there trying to raise it another trillion dollars of capital. so we see that number firms trying to raise money, that is a worrisome sign. so, i do not

want to be a negative, there are some positives in the world. interest rates are still low. that is a good thing and that will continue fuel the economy back the dollar is strong yes commissioner >> question. it talked about comparing it to 99. when you look at the ipo market that you are talking about, how hot it was, she is igniting i was much hotter than 150 ipos. it was like 20 ipos a week or something. so, do not you see that as as difference because getting out it seems a much more merger or acquisition oriented rather than ipos? >> is both. this is the best market for venture capital since probably 2001-ish sort relative basis the more ipos this time frame. but you are right. i was it was different is the quality of the companies are different. these are real revenue cash flow generating

businesses for the most part. whereas in 99 it was all the -- eyeballs. clearly a difference in quality and maybe a little bit more selectivity. a little bit less promotion from the i bankers out there that are working on these things. with that said our business is cyclical. then you are on the upper end of the cycle you do become a live it more philosophical, i presume. then, i think this economic recovery, many people talked about how we are perhaps six, seven, eight years into it, per year up there and asia is coming back and were starting to see age activity heat up. i think if you believe in a strong dollar leveraging the strong dollar to go more

international sort of an interesting thought in this environment. we think you created a very disciplined approach to the private equity world for an investment perspective. i know in your previous discussion you made to mention about -- selection. when we look at your portfolio we believe your staff is implementing best practices in their manager selection. i think you all done a good job putting together world-class purse portfolio that you should be proud of. >> all right. is that it? >> that is it to ship any of the questions q >> yes i have a question. will try to work off -- on looking at your page 5. the issue has to do with the dry powder overhanging. with the

rapid pace to invest. with a rapid pace that would increase allocation unit this more money coming back. let alone consultants and other people around the world particularly in the united states or recommend more people go into this area to include in the retail level.'s more cash coming in probably two reasons which i think you are identifying. our return is based on us having that full allocation earning well we use 11% were not able to do that back is that a signal about slowdown or another reallocation about acid class. i am looking at this overhang that yes i have been partnership mirrors that they are glad we are turning capital, but is the issue of the price being expected debate by something new. has that been that i spin increasing too much signaling to mike is the wrong time to be buying? >> autos of their point. has

i discussed we worry about that as well. private equity asset class are to be viewed in five-year chunks. one of the things that we have actually been surprised by and impressed by is the amount of discipline that fund managers are using in this current environment. the overhang exists because a lot of other private equity investors believe is a better time to be a seller than a buyer. so they are being very selective and discipline in transactions. with that said, when you have a 2% treasury, the cost of capital is very little right now for everybody in the marketplace. i think we all believe you like to be earning a risk premium for private equity. being able to achieve as +500 is been hard for everybody in the world because the smb, the public

markets have so far outpaced private equity markets and other markets. in the maturing of 5% return premium over that is going to be challenging the next couple years as well. so, i guess the best way to save manager selection is critical right now because you do not want to put those you do not want to invest your money into people just want to do deals deals sake. one folks who truly want to learn and create value within the context of portfolio that >> the purpose of planning and making general future allocations in this area, that is one reason why we have -- we have a great till experience [inaudible] more the reporting function you perform press a look at the unfunded capital buyout area is seven or 32 million and then i go back to look at the performance of the private equity vs. buyout. china looking but of cycles in chunks whether not they should

be increasing our commitment to discuss private equity [inaudible]. is a loaded question but i am asking a senior expense of helping funds allocate? >> sure. >> and focus on us and non-us in your answer. because you said we should be leveraging a strong dollar. that this is does not help us much here. it helps us -- >> right. those are overall view. if you are a global investor, and you bought a piece of real estate last year in france, hypothetically, today, if you look at the euro dollar, currency movement that house is worth -- that piece of property is worth 25% less just on currency movement. so, if you took that approach to investing the rest of the lord looks relatively cheap today.

from the dollar vantage point, dollar investor vantage point. so, we generally, are thinking that tactically the rest of the world could be interesting. the district to it -- to address the question, and interesting thought because if you are thinking in terms of time five-year time frames, parts of equity does best when you are a -- is distressed that because the amount of capital allocated gets a possible opportunity set could be compelling. when rates rise assuming that over the next five years rates will rise, there will be more bankruptcies in the marketplace. we have been artificially -- and an artificial environment with the banks have adopted a -- and they were very supportive of

reducing the amount of bankruptcies in the world. so were actually out of a low rate of bankruptcy today in the united states. at some points, especially in the market changes , these are the interest rates, distressed debt will become the route compelling. sometimes it backfires to be an interesting distressed cycle. >> thank you again. going back to the point of ice and greater return. is not as easy as people think it is. one of the real reasons with a dry power overhang when everyone caught it is not that easy to get all the money we would like to work to work. >> thank you. scene is no further -- i am sorry. >> thank you for joining us. a couple questions. you talked about the ebit of multiple time as opposed to pressure banks.

i understand ebit up i understand the multiples group understands total debt is limited to industries or across all industries? >> at the bank's pink deadheads across the board. not specifically any one industry. let me give you more context first. the average multiple acquisition multiple great business today is [inaudible] cash flow. what we saw prior to the position of this rule was total debt to cash flow was running around 7-8 times ebit up. so, six times is going to cause investors to put more equity into transactions, which will lower equity insurance and require more mezzanine capital that is not -- that. what it has done is caused a lot of transactions to be reevaluated a lot of -- by plaintiff simply

fall out. when you have bigger transactions the high-yield market becomes extremely aggressive and very low cost. so, a lot of the larger transactions are really being tapped and being shifted into the high-yield market place. there has been some headlines are came out last couple weeks but apostle high-yield bubble. because, investors are chasing returns globally. but hopefully, that gives you some additional context >> it does matter separated commercial banks that are fdic insured from even syndicating some of these deals because they can hold on the books at all? >> they can originate it. the fact that most banks like to syndicate series almost every -- decent sizes indicated. a lot of the syndication partners are either other commercial banks were collateralized loan --

[inaudible]. lot of the clo's are having hard time finding supply from the bank because the banks simply undoing those deals anymore >> very interesting point president but because you than about cpi and the purchase of ge. it is all mother discussion about plans and try to find return, but when you look at the market any other pension plans and almonds out there, who are the other one or two most interesting plans the best performance and what are they doing? where they looking for jones? >> in terms of private equity of course. >> sure. we have done comparison compare and contrast exercise with you and others. what you are heavy on his venture capital. that is really paid off for you nicely. over the last few years back

partly because the location of proximity to silicon valley the better access to a lot of venture firms vs. most other public pensions. i think a lot of other systems moving internationally today. then, i think those you are starting to see more investors think about things like strategic lending, a marketplace vs. as a substitute for carpet bonds but doing it doing opportunistically. a extension of their private equity programs. >> in terms of, it looks like we have a 70% weight to the us in terms of exposure by geography. what are your thoughts on george soto briefly, china, india, brazil, sort of the big markets out there? >> so, if you had been an

investor in india and brazil, your proposal would be worth less than it is today. >> on average? >> on average. if you simply look at performance of stock market in india and brazil, the last couple years, and then china has been a sizzling market over the last 12 months, but i think if you look dependent which timeframe is been disappointing. but we advise our clients on markets, we will look at both of gdp growth that also stock market liquidity and performance. private equity in the markets you mentioned is really a pre-ipo approach to the business for the most part. if you do not have a performance are market, performance tends to be sue suffer.

>> what about top quartile say india and brazil? one thing he was talking out is either is a private equity portfolio has done so well is of course a lot of top without funds. if you are in the top quartile funds in brazil and india is their big dispersion of returns that sort of lifts you up above the returns on average like you mentioned? >> sure. the dispersions of returns in inefficient markets tend to be much wider. so, in brazil it is even more pronounced. with that said we recently sort of surveyed both markets for another client, and depending on which timeframe, even the top quartile funds that time of time returning money for interesting risk adjustment return. now, if you believe that a country approach

to private equity makes you the most money studies have shown over time contrarian approaches does do very well it is probably a good printer and that to be investor in india and brazil today smack >> thank you. >> 1 min. commissioner mitre mitre hearing none >> on page four of your reports you state contributions for the last 12 months total four and 28 million. neural, suzette about in 1 million and 1 billion. so? -- only 1 min. -- question one if you can reconcile the dollar amount, and question two it is actually requested, page 7 going forward, you do not identify the specific bonds to fund eight, funds he does not mean i think what buffer would disclose all these things can i get names on this please? >> i will work with staff on that. >> is that a yes or no

>> that is my question. on page 7 and eight and page 17, it would help me to understand what the company's names are just so i can follow through since we made the investment that was you have to figure out who a is and who he is when were public agency in all the information is already been provided to the public? so we can help ourselves and help the public understand we are we are at. >> i hear your. on your first question, talk about two different things that had lucky either million and 1.1 billion that is the dollars that have been committed. or the target for commitment and the contributions are actually done with the gen. partners ask you to wire them so they can make the investments. once when you commit to a fund they have a 5-6 year window to actually draw down the capital. >> thanks for the

clarification that j names of the funds ? >> with all due respect i wanted this time back it does not have to be done today that can be resubmit it with a document >> luisa met the report with identifying information. >> thank you. >> which of course takes into account any sort of agreement and anything else we have with partners, right? >> of course >> can ask one more question. >> sure >> can you tell us very briefly, what you think you could do better? should we work in infrastructure, what is something very basic that we think looking back we could have done better? >> let us get back to you on that. we need to process that

a little bit. >> good. it would be good education for us >> okay. a quick thank you for your presentation. i think will go to public comment on this item. public comment is open. seeing this no public comment this item is closed. mr. to please call the next item. >> items and item approval for up to 100 million european property investor special opportunity fund for that. mr. coker >> thank you, norm and commissioners, peter and greg, will introduce this investment. just a quick note, while they arrived at the table, edward, ford has joined our team as a manager for real estate. he joined about three weeks ago. is not available today but will be a regular future board meetings. peter. >> thank you bob good afternoon commissioners back >>[applause] bill said we had to ground

running and he is doing the due diligence process that were about to hear. we are recommending tristan and one other real estate opportunity. that we believe will comment real estate partnerships that we recognize thus far for the year. specifically in regard to the commissioner paskin-jordan is on high leveraging additional 9-6 in contrast to real estate partnerships that a concert of levels of leverage to generate opportunities to greet [inaudible] direct we think tristan fund for his them excellent opportunity for sf drs to partner with goshen focusing middle-market real estate investment across europe. tristan is a proven platform. it has the highest successful in your over multiple talk market cycles. the senior partners interest and have worked together for

more than 15 years, starting at -- one of the reasons they left -- informed tristan was because they wanted to do away with the restriction of corporate ownership. as such, the partners are committed to maintaining -- fully employed own farm. we think these are some of the characteristics that underpin their success in the region that is highly diverse and requires multiple skill sets and different relationships. on a macro basis, we think the european markets are in a similar condition to that of the us markets back in 2010. but the us, we think europe and its capital markets are slowly recovering and combined with the gdp's quantitative easing and easing monetary policies we think these are good headwinds for real estate going forward.

we think tristan will be highly successful in this environment given their experience team, their thematic research approach and will document well-connected network so local offering partners in mack in addition, we like tristan approach to utilizing rubbish fund for has a maximum limit of 60%, but historically this and has been close to 50% in prior funds. a 15% net return across the opportunistic funds. if you look at the staff memo to my you most tristan has not yet met their return targets in the -- funds. funds one and two in mack although tristan has not delivered returns, we still think they are pretty impressive returns because both of those funds are precrisis funds especially with fund to. is very close to the peak of the market cycle. just like

that as of december 31, the entire fund fellowship 1.3 times met multiple. we think country has a great chance of being there target return of 15% net and that is because most of the fund is still market cost and they have one or two pretty good realizations thus far in the year and going forward the jones we think they are great chance of performing well. >> sure. i would echo everything peter said prince of echoing it all just add that they have a very strong internal operating capability and intro asset management in of 27 people. so they can truly own and execute on these operations. did you leverage

local operating partners, but that has more to the extent of deal flow and execution. tristan retains full operational control over the strategic plan for all these assets. finally with regard to the investment returns, they have one of the top track records in europe so oftentimes we compare real estate managers again with the global benchmark make when you cure for the geographic bias they have one of the top if not the top european specific real estate track records. >> great. any questions? >> it had to do with the third fund am objecting to you described as above 45% and gross multiples of 1.5 [inaudible] i am just curious who actually looked at the book to see those statements were true?