Summary
The purpose of the Pool is to build a diversified portfolio of global investments in private equity, i.e. equity investments in non-listed companies. The purposes of the Pool are to acquire and manage globally diversified interests in private equity funds, amongst which also co-investments, secondary and mezzanine investments, which focus on, but are not limited to, buyouts and venture capital, and to outperform the benchmark.
Fund-of-funds Investments: private equity investments through commitments to external fund of funds managers.
In-house Private Equity: private equity investments made by the Manager in-house.
Co-Investments: investments directly or indirectly through Investee Funds made in privately negotiated transactions on a side-by-side basis with other investors, arranged by third-party managers selected by the Manager where the Pool participates pari passu with lead investors.
Mezzanine Investments: investments in mezzanine positions (whether in mezzanine partnership funds, mezzanine co-investments or mezzanine secondary investments) selected by or at the order of the Manager.
Although the split over the various investment types implicates that the total Pool composition is not pre-determined, there are a number of restrictions that will apply to the underlying portfolios within each investment type, such as style weights that remain within a predetermined bandwidth and diversification within each style, as well as bandwidth for regional diversification purposes. The relevant criteria for this best-effort strategy will be the optimal use of available opportunities, the extensive network and leverage skill and knowledge base when building the overall portfolio and diversifying within the private equity space.
Overflow Capacity: Part of the Commitments made by a Participant and as allocated to In-house Private Equity may, in the Participant’s Subscription Form, be earmarked by the Manager as ‘Overflow Capacity’. The Overflow Capacity part of Commitments will only be drawn down by the Manager in case more In-house Private Equity investment opportunities would arise in any calendar year than expected. These opportunistic strategies may include in-house investments made in Co-Investments, Secondary Investments, as well as private equity funds that move forward their fundraising schedule. The Overflow Capacity will not alter the strategic objectives of the Pool and is expected to have a positive impact on the Pool’s returns. The Overflow Capacity will be cancelled by the Manager, either in whole or in part, if and to the extent not used ultimately by the end of the Commitment Period in relation to the relevant (in-house) investment type for the given year (i.e. either 2016 or 2017).