PERA Due Diligence Questionnaire - Public Employees Retirement ...

Outside activities % % % %
Total 100% 100% 100% 100%
2.6 Explain how the professionals are compensated, detailing components (base, bonus, etc.), how compensation is
determined and vesting.
2.7 Who shares in the carried interest? Please provide a break-out by percentage using the below table as a guide:
Cumulative
Amount Invested
12.000% vests at time of first closing 12.000%
12.175% vests at the end of year 1 24.175%
12.175% vests at the end of year 2 36.350%
12.175% vests at the end of year 3 48.525%
16.475% vests at the end of year 4 65.000%
Total 100%
*Remaining 35% vests at realization.
2.8 Describe the ownership structure of the General Partnership entity. List the Firm’s principals, individuals and/or
entities owning 10% or more of the Firm.
2.9 List the names of any team departures from professional investment staff since inception and include reason for
departure.
2.10 Does any Managing Director own, directly or indirectly, any private companies? Does any Managing Director have
any involvement or relation with a company that has a conflict of interest with the fund?
2.11 Describe any health, financial, personal, or other conditions of any of the general partners that might influence their
ability to execute their duties to the proposed fund.
2.12 Please discuss your hiring plans for future partners and professionals. Please discuss organizational growth plans.
2.13 Describe succession plans.
2.14 Have any of the investment professionals or affiliates of the general partners been allowed to invest or participate in
or alongside any prior portfolio company investment outside of their limited and General Partner’s commitment?
2.15 Will any General Partner affiliates invest in, own an interest in or have any participation or role in, the proposed
Partnership or the General Partner or its portfolio investments?
2.16 How much capital is the company’s investment professionals expected to invest in the Fund?
2.17 Are any of the individuals acting as members on any other management teams or companies/partnerships? Please
provide details.
2.18 Provide biographies of the advisory board members.
2.19 Will the firm be able to invest the Fund with its current investment team in place?
2.20 How are investment professionals recruited?
2.21 How are new recruits mentored?
2.22 What measures are in place to retain staff (ie: vested interest in the carry)?
2.23 Are any of the firm’s key personnel under employment contract? Please detail.
2.24 Where are the offices of the firm? Where are the managing directors located?
2.25 Describe the cooperation/communication between the various offices.
2.26 Does Sponsor expect to establish any new office locations during the life of the Fund?
3 Investment Strategy & Process:
3.1 Summarize your investment philosophy and process for making investments.
3.2 Describe the business sector and industry focus, and geographic focus. Provide expected sector, industry, region
concentrations.
3.3 What will be the estimated size of deals and the number of deals in the Fund?
3.4 What is the anticipated Investment Period and what is the anticipated Hold Period for investments?
3.5 Provide expected return information. List the minimum IRR that an investment would be expected to realize as well
as the target return for individual investments.
3.6 Describe what differentiates this Fund positively in the current marketplace? Explain the firm’s most compelling
competitive advantages.
3.7 Explain how the firm creates value for the portfolio.