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, growth equity and venture capital. The performance objective is to outperform the Public Market Benchmark in IRR/PME+ terms over a period since the Closing Date of the Pool (1) over a 5-year period, (2) over a 10-year period and (3) to the end of the Term of the Pool.
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.
Secondary Investments: invest in attractive existing partnership funds and/or restructuring existing funds and create new terms (and in some cases in conjunction with additional primary capital) and equity co-investment interests in a company or companies.
Co-Investments: investments directly or indirectly through Investee Funds made in privately negotiated transactions on a side-by-side basis with other investor(s), arranged by general partners selected by the Manager where the Pool generally participates pari passu with the lead general partners.
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 pre-determined 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.