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?

>> my clear about what am referring to >> are referring to [inaudible] >> top of page 9 of your reports here. >> teaming page 6? >> top of page 7. countries put in the fourth portal. i am just curious you have strong prediction about how other doing with the third fund. >>.it. i looked at the books i looked at the four realized deals that your friend to a 45% [inaudible] gross multiple. i looked at their basically transaction history across funds, one, two, and three. during my due diligence

process, it is pretty much in line with what they intended to do across europe. the reason i said our condition terms of fund in particular fund three in particular because 75% of the fund is still market it cost them it is pretty much transacted sometimes and 2014. like their prior funds, edward craig mentioned, they spend a lot of time on the active passive management of their investment. they spent a lot of time working with their local operating partners making sure that -- are tracking, making sure any kind of strategic initiatives they want to do with her assets in terms of repositioning, redeveloping were executed on a timely basis. >> okay, you accepted that your value for those properties?

>> that is right because those are real ideals >> i understand. is what i understand your condition. thank you. >> that was my only question. >> commissioner >> just one click. in terms of the relative relation of real estate does it appear that european real estate is relatively cheap vs. united states for example quick that you could cite rates or some indications of that? >> so i would comment real estate today is -- tends to be fairly overvalued relative to its own history that if you are comparing europe against other geographies, i would say they are relatively comparable to each other that rates today been close to all-time lows gateway cities in europe probably in for-5% range for venture capital rates for class a properties map to ship with the gateway >> a london, paris and international city to ship

something comparable to san francisco >> san francisco you new york los angeles mack >> going off that, and also with -- mr. --, that related to percent [inaudible] european side debt -- alisa highly popular comedies like germany and the uk, very similar to that in the us, [inaudible] anytime you have low interest rate real estate kind of reflects that specially in the property yields. but, in europe even where the state of the market, where they are in their economic recovery the recovery of the banking system, a lot of the real estate are very distressed because his lack of capital. existing users or existing owners of these properties a lot of times do not have the capacity to spend money to fix the property

to reposition it to realize the market value of say for example 5% rate. this is where the opportunity this opportunistic real estate investment comes but also, going off what craig said early, because of the global financial crisis many opportunistic european real estate managers because they can pretty much decimated since the global financial crisis and the survivors like tristan are basically having a very good opportunity set. >> aye question for you. the recommendation is asking for investment of 100 million track how does that translate into us dollars with the value? >> i think the euros like 1.2 dollars to one euro, so that is close to $120 million. >> thank you. all right. are we ready this is an action item. are we ready the public comments. with the public

comment on this item. item number 10. seen no public comment public comment is closed. further discussion clear if not, will take same house and call. commissioner driscoll >> us a question i do not understand their preferred return the eight vs. 11.5 back is that based on -- i try to finance i could not find it left asked. >> basically, which is in china do is accelerate basically the gp catch up so that -- what you see is the incentive returns hurdles but the total incentive return, incentive profit for the gen. partners to 20%. was basically saying if they do really well in one deal, they will get the gp profit a lot faster than if they had like one preferred

return hurdle. then, more like a standard 8020 gdp catch-up. in this case, they not only have the -- not only the gp catch up but also the different return hurdles to get their basically gp profit, the gp carried interest a lot faster. >> is this a new feature -- a new way of doing it? >> is not a new feature a lot of these terms are still under negotiation. at this point. >> re: look at first close second close last post? >> were taught developers] sounds like energy but that is predicated on if we can get to the turn that aligns interest and to align the interest and to protect sf ers sf drs fund in this >> unlike the last commitment where we get the gp authority

to hedge if they so desire, is that all in this because it is a uk/euro-based that do not care about that issue? >> in terms of currency hedging, i think you are right in that regard back there probably going to not hedge because we are investing in euros and are operating in predominately to nominating in euros, in the prior -- in the prior european commitment -- they operate endurance to do it [inaudible] a couple nordic companies their own currencies and also they operate in euro regions as well. >>'s paid in euros anyway >> that is right to ship their motion >> i move we docked [inaudible] up to 00 million european property venture before >> thank you very much is there a second. >> second >> second >> thank you. motion made by

mike reid and second by bridges. same house and call. >> i appreciate in a cynical but as matter of vertical everyone should vote so we know where everyone stands especially as it relates to investment >> i have not a call for rollcall vote. >> i do not think we need rollcall vote i think the same method we have always utilize. >> autocrat into consideration. this potion still passes. please call the next item. >> item 11 item approval up to 50 million to westbrook real estate fund 10. thank you norm commissioner >> same team also a real estate deal, by same team i mean peter and craig. global

strategy rather than europe. >> thank you paul. pretty similar to tristan, we like westbrook because we think it is an excellent opportunity to partner with a firm that is focused investing in primarily middle-market real estate transactions. with a focused primarily in gateway cities mike gailey said is again might san francisco, new york, london and tokyo, paris. the firm's founder, paul -- has built a global platform that successfully sponsored 10 prior funds. nine of westbrook and one predecessor investment vehicle that he set up as a morgan stanley. westpac targeted primarily 12 global gateway cities and that is in the staff symbol. we like their approach in building a portfolio that is focused primarily in -- acquire 25,000,000-75,000,000 in equity. that is pretty much the middle-market range were talking about. the file font

size is estimated to be around 2.5 billion and that translates roughly 50-70 investments. so, we like this level of face the first occasion that they are targeting. for front-end, westbrook is tactical towards europe so very similar to tristan, we think there is a tailwind for european real estate going forward. we think westbrook will be successful in like tristan and capitalizing these opportunities that is currently merging the european real estate market that we like westbrook's approach to utilizing leverage. funds and has a maximum dose of 50% but historically leased in the prior three funds they have been staying closed about 3% ltv. so it is very conservative , relative to a lot of the opportunistic real estate partnerships that we evaluated.

in terms of performance, the performance of the five most recent westbrook funds are most representative of the current management team. are mostly in the first and second quartile fund based on the cambridge benchmark. was challenge funds are since fund six and fund seven both of these funds existed exactly, or predominately at the peak of the market. funds six is currently valued at 24% net ira and one-time multiple so highly impacted by the financial crisis . the funds tokyo investments are the ones that caused most of them impacted that fund. almost all tokyo investments were completely written off for fund six, fund seven is doing a livid better at 2.5% net ir and

told [inaudible] net multiple and again the dean's tokyo investments were -- cost majority of impact that fund. we like however, we like the team discipline in their approach to managing their investments, and i think that is one of the reasons why they were able to -- return capital to investors across two very difficult tears vintage years. up acid onto cambridge. >> again, similar situation here in terms of organizational resources. 15 investment professionals averaging 25 years experience among them long shared history of westbrook with an average of 11 years at the firm back at 28% in-house asset management team so they control these assets and exited on the value add strategy three-person operations investment team to company legal accounting investor relations etc. the

team has been relatively stable over the past few funds. early on when current version of westbrook arose it was some team turnover. that is since stabilized over the last couple of funds to this judge is opportunistic and risk profiles engaged primarily in rehabilitation's and repositioning sebago to a lot of new development. as peter mentioned, very little ravage on average kind of about 30%. that evolves over the course of the assets sold at acquisition, ltv tends to be closer to 10-15%. once the property cash flow stabilized able it on additional leverage. that is when the funds average out ltv begins to creep up but it is pretty prudent use of leverage pair well with the value execution. and i think that is

good complement to what peter mentioned. >> any questions? mr. ma makras >> mine is a reporting issue. i like the idea on this particular memorandum that talks about -- [inaudible] you have identify whether located in their various offices, but [inaudible] my preference knowing where their offices are has some significance to me. there is some interest to people on the ground doing the job. in this case in tokyo and given entity it gives me comfort as an calendar item number 10, i do not have the privilege of having a comfort in understanding their people on the ground where there impacted. so i like to see it at all possible in future briefs . >> absolutely.

>> let us take public comment. seeing that there is no public comments, public comment is closed at this time. is her motion? >> all moved the adoption and best up to 59 and westbrook real estate >> thank you. is her second >> all second >> all those in favor say aye. this motion passes unanimously. >> action item 12 of 270, two ta associates 12 sculptor >> again thank you board members glenn and anita make their way up all just briefly mention ta is a firm we know very well. we have made five, at least five prior investments the firm is about 40-year-olds 40 years old more than 100 boys. the five we have been a top quartile and the fourth has been second quartile in various est. firm and a turn it over to

glenn and cambridge. >> thank you. so, reefer year bill mentioned we do have a long-standing relationship with the associates ltd. does date back at least to 1993 crack we have invested in the last five equity funds. the overall performance for san francisco's very strong current we received 1.8 times invest capital back across those five equity funds. we categorized tsl associates is growth equity firm and gabe also do about as well. silly really are a blend if you will of doing minority positions, growth equity positions, but also do probably have their deals were little more than half the deals in control buyouts. as fund sizes creep up , as it is with this fund, we get the sense that -- they are

doing more of the control buyouts in terms of the minority growth equity deals. we are seeking between 50-75,000,000 in this fund. it is likely to be -- if not oversubscribed fund. so allocation could be an issue for us here but were getting it early, with your approval with the hopes that we can get a full commitment to this fund. this fund will make about 50 investments in really high-growth investments that they tend to source to a cold call and effort. is one of their key strategic initiatives to reach out to literally thousands of private companies, talk to the executives of those firms, and see if they cannot pave the way to make a private investment with these firms, with that company, when really,

they are not on the radar screen of other private equity firms. i think that this really does drive their proprietary deal flow and up to lake; percent of the deals that were done came from this cold calling effort. saw really seems the working mike is not due to be a associates back there really have been a great job at doing cold calling and really sort of ramping up that effort. but it is a real strategic value of theirs. it is a diversified -- 50 investments that make that over probably five or six year period of time. to-do middle-market deals and transactions from time to time they have done sort of upper middle-market, and though probably do some more here, but the best known for small and middle-market transactions. mostly in five core sectors

technology consumer healthcare, financial services and business services is really where most of those 50 companies will aside in those industries. to speak about their global efforts, they do concern themselves with global firm and indeed they are. they get most of their deals from the us that 70% of the flow comes from the us but they also are active in europe and asia as well and you have offices located there in the major cities and they have people dedicated staff in those offices as well. they will look to do 30 and up to about 40% of the deals outside the us. they do have a large team of large fun for them. but they have a large deal team benefiting managing directors. they have about 35 to

professionals. so once there will actually be front and center on these deals. than 70 77 investment professionals overall. one thing i like about ta, they really only have the last two funds are really were under sharing the workload right now on those last two funds. the five funds are most either completely mature or well on the way to final liquidation. having said that, returns not just for san francisco but for all trust fund is been very strong. bill you touch on a. both of the funds of top quartile according to bench images benchmark. the one excuse me fund, was the

second to last fund. this was a pre-recession fund. they are very outspoken about it. it has been an embarrassment for them although i would say it has been a profitable fund is making investors money, but it is tracking on 1.2 net multiple right now, which is below what our expectations are, below pa's expectations. 75% of that is capital invested in pre-recessionary deals, so in that 2006, 2007 time period. 75% of the capital was pre-recession. unfortunately, those deals did not do very well during the recession. 2008-2009, in the last several years the fund has been -- has positive traction, whereas and their creation nation has been positive overall the last five years. i think this is good to continue on the track, on a pace to continue to build value, but the likelihood of this being between 1.2 and 1.5 x is probably what our expectations at this time.

with that is alternative to cambridge for further comment. >> thank you, glenn. >> i would just add a few comments to your competent summary printers of call: very strong cold calling effort. i would also add, that they were the pioneer in this cold calling strategy. what that translates to one an annual basis today, it means they call the contact 8000 companies a year and a meet with 2000 companies annually. there since the time that they pioneered that model they are evolving that model and currently have made it more of a focus for their 36 investment professional associates my junior resources, divided them by their industry sectors so that they are keep in more refined in terms of really

digging deep into their specific areas. it has been a long relationship for san francisco last summer for you to map the group ta as long history but they also had a very good generational transfer succession planning process process in place this was years in the making and now they have expended a generational transfer. still with a very experienced tenure team, their average be average tenure is 15 years and they have a culture promoting from within, so the two culture of the team really is a very strong similarity across their perfection all. in terms of the justification we noted this will have potentially approximately 50 investments in the fund. the size of the four period of target we think this type of --

this type of number of investments for the fund probably gets you a tighter range of outcomes in terms of where the fun ultimately ends up. i think that means also notably low watch ratio. but not a huge venture like homerun return, but probably loss ratios that we have seen in past funds in the mid-single digits. loss ratios. they are one of the few midmarket players with some gross growth equity midmarket players that have equitable breath. we also are san francisco we also made a commitment to gdp growth earlier this year so also growth focused, but i would say a bit different in that ta has a

more history as well as a larger team in london and probably will have a little bit more europe focused than gdp growth. they did have that hick up in the fund 10 and definitely some lessons learned there. they went upmarket in terms of transaction size, and so as wells invested at a very expensive time, pre-global financial crisis. so, they have learned some lessons they are focusing more on smaller deals and getting back to their roots for this fund as wells for fund 11, the immediately prior fund. just to touch upon some of the themes that were highlighted from cory coates report on private equity, ta has been one of those players that have taken advantage of the strong liquidity market and in 2014 they generated 4 billion in proceeds for the most recent two funds at a

gross 2.7 times multiple. i think that is all i have. >> pickwick thank you. >> any discussion? >> can you give us a couple names of committees that invested in? any homeruns i like to hear those direct >> one other hope of outpost was tempered the deck >> that was 100 bagger was in it? >> you may want to rephrase that. >> [inaudible] >> it was very high multiple. >> in their latest fund lending help has been a huge home run for them at market about five times multiple. >> can you pick

>> millennium health that it is a lab service. >> thank you. >> they do consumer brands back when i am not, with but i see on the grocery shelves i believe called pop snacks or skinny pop >> anyone tried the skinny pop snack chips. >> that is a different one. >> can you find out about tempered edict because i know it is a tremendously successful company. >> of course we can. >> with the public comment on this item. seen this no members of the public want to talk on this item, public comment is closed. is there any discussion to pick on entertain a motion. >> all move the item to ship motion moves. >> i will second >> moved by madison second by

my burger. all those in favor say aye. opposed to pick the motion passed unanimously call the next item. >> ever one of the social investment policy procedures to add the 15 proxy bodie's adam mr. coker >> last year the retirement board voted to engage the carbon track 200 list companies that we own data level i engagement investment policy. this part of our monthly report back to the board related to our climate risk votes during the 2015 16 season and out without i will turn it over to bob schultz who have been working with iss to prepare the report back >> thank you. >> commissioners, this in update from the port you saw last month and to continuation from the port that you saw in the prior proxy season. we

have seen an increase from the last port where there was one -- there is three new ones. all areas that have been put forward in the past are standard practice in our proxy voting policy is to vote against a proposal should be data indicate management is currently providing sufficient information to shareholders so survey to make an informed decision in those areas. so you will note in some cases will be a four vote for let us say greenhouse gases on one company and then maybe meagerly thereafter there may be an against boat for greenhouse gases in a different company. it has to primarily with whether or not the general consensus that shareholders are receiving sufficient information to make an informed decision. >> thank you. any discussion on this item?