2018 California Government Code Section 7514.7 Disclosure · 12/18/2019 · 2017 as California...

2018 California Government

Code Section 7514.7 DisclosureWater and Power Employees’ Retirement Plan

December 18, 2019

Overview

• California Assembly Bill 2833 was enacted in 2016 and became effective January 1,

2017 as California Government Code Section 7514.7 (the “Code”).

• The Code requires California public pension plans (“California Plans”) to obtain and

publicly disclose certain fee and expense data and information on an annual basis in

a public meeting.

• The law applies to any private fund that is an alternative investment vehicle whose

contract with a California Plan was entered into on or after January 1, 2017, or for

any existing contract as of December 31, 2016 for which an additional capital

commitment is made on or after January 1, 2017.

• For contracts entered into prior to January 1, 2017, California Plans are required to

use “reasonable efforts” to acquire the mandatory information.

• The intent of the legislation is to increase transparency of the fees public investors

are paying.

2

Code Section 7514.7 Disclosure Requirements

1. The fees and expenses that the California Plan pays directly to the alternative

investment vehicle, the fund manager, or related parties.

2. The California Plan’s pro rata share of fees and expenses not included in paragraph

(1) that are paid from the alternative investment vehicle to the fund manager or

related parties. The California Plan may independently calculate this information

based on information contractually required to be provided by the alternative

investment vehicle to the public investment fund. If the California Plan independently

calculates this information, then the alternative investment vehicle shall not be

required to provide the information identified in this paragraph.

3. The California Plan’s pro rata share of carried interest distributed to the fund

manager or related parties.

4. The California Plan’s pro rata share of aggregate fees and expenses paid by all of

the portfolio companies held within the alternative investment vehicle to the fund

manager or related parties.

5. Any additional information described in subdivision (b) of Section 6254.26 of the

Code.

3

Code Section 6254.26 Disclosure Requirements:

1. The name, address, and vintage year of each alternative investment vehicle.

2. The dollar amount of the commitment made to each alternative investment vehicle by

the California Plan since inception.

3. The dollar amount of cash contributions made by the California Plan to each

alternative investment vehicle since inception.

4. The dollar amount, on a fiscal year end basis, of cash distributions received by the

California Plan from each alternative investment vehicle.

5. The dollar amount, on a fiscal year-end basis, of cash distributions received by the

California Plan plus remaining value of partnership assets attributable to the

California Plan's investment in each alternative investment vehicle.

6. The net internal rate of return of each alternative investment vehicle since inception.

7. The investment multiple of each alternative investment vehicle since inception.

8. The dollar amount of the total management fees and costs paid on an annual fiscal

year-end basis, by the California Plan to each alternative investment vehicle.

9. The dollar amount of cash profit received by California Plans from each alternative

investment vehicle on a fiscal year-end basis.

4

Private Equity

5

• Utilizing the Institution of Limited Partners Association (ILPA) template

Requiring completion of ILPA Fee & Expense Templateo included as a side letter provision in all commitments since January 1, 2017

o maximizing the consistency of information across partnerships

Data presented to be as of each calendar year endo to correspond with the auditing of the underlying partnerships

Requesting completion of ILPA Template or similar information from prior

fundso applying a best efforts approach

• The disclosed Gross IRRs are provided by the private equity fund managers; the net IRRs

are estimated based on StepStone's own calculations.

Note: The data contained in the ILPA Templates received from the Water & Power Employees’

Retirement Plan private equity fund managers that is included in the disclosures in this

presentation are the representation of each manager. While StepStone reviewed each template

for reasonableness, we make no representation as to the accuracy or completeness of the data

disclosed and contained in the ILPA Template or the disclosures in this presentation.

Approach

6

Section 7514.7 Disclosure: Retirement FundPrivate Equity: 2018 calendar year data

Past performance is not necessarily indicative of future results. Actual performance may vary.

Investment Commitment Ending Val. Mgmt. FeePartnership

ExpensesOffsets

Other F&E

Paid to GP

Carried Interest

Paid

F&E Paid by Port.

Companies

Adams Street SMB I 125,000,000 28,300,351 389,946 52,132 0 0 0 0

Apollo IX 54,200,000 (712,865) 610,873 142,692 0 0 0 0

Apollo VIII 34,000,000 28,737,816 224,665 126,157 137,742 0 434,078 137,742

Ares Corp. Opp. IV 25,000,000 22,675,725 141,842 18,827 36,212 0 (8,912) 0

Ares Corp. Opp. V 60,000,000 23,912,900 900,000 94,212 5,563 0 0 5,563

Ares SS IV 50,000,000 33,936,625 378,576 98,563 0 0 0 0

Audax Mezz. III 17,000,000 3,468,251 74,987 7,210 1,511 0 23,800 0

Blackstone TO II 50,000,000 33,497,371 578,687 119,443 127,847 0 348,287 60,668

CD&R IX 25,000,000 24,492,140 125,473 107,308 125,473 0 49,376 0

CD&R X 54,000,000 14,394,221 810,000 272,044 354,571 0 0 0

Crestview III 50,000,000 32,963,214 875,000 125,792 100,862 0 0 100,862

EnCap Energy IX 17,000,000 11,773,621 199,782 3,095 0 0 0 0

EnCap Energy VIII 12,500,000 4,078,129 72,073 2,175 0 0 0 0

EnCap Energy X 37,000,000 31,011,421 355,762 3,549 0 0 0 0

EnCap Energy XI 50,000,000 4,123,817 750,000 3,874 0 0 0 0

Fisher Lynch II 20,000,000 14,084,771 90,876 50,381 0 0 0 0

HRJ Special Opp. II 20,000,000 4,672,178 14,510 28,709 0 0 0 0

Harvest VII 30,000,000 17,349,929 600,030 0 394,111 393,359 0 0

Industry Ventures VIII 37,500,000 19,494,729 562,500 0 0 0 0 0

Landmark Equity XIII 30,000,000 6,847,936 75,462 16,889 0 0 0 0

Landmark Equity XIV 30,000,000 6,130,639 96,382 5,479 0 0 0 0

Landmark Equity XV 40,000,000 15,602,979 400,000 228,994 0 0 0 0

Lexington Capital IX 75,000,000 2,245,512 132,604 152,538 0 0 0 0

Lexington Capital VI 30,000,000 3,245,677 13,875 12,036 0 0 46,450 0

Lexington Capital VII 30,000,000 8,993,050 117,643 33,348 3,406 123,443 300,960 0

Oaktree Principal V 16,000,000 7,350,802 135,204 21,339 11,009 0 0 0

Silver Lake IV 18,000,000 23,555,752 173,034 10,607 9,681 1,706 231,159 9,681

Silver Lake V 58,000,000 13,047,181 763,667 323,911 56,476 3,731 0 56,476

Vista Equity IV 25,000,000 21,397,810 183,316 14,575 0 0 0 0

Vista Equity V 50,000,000 55,002,021 750,000 37,323 0 0 3,747,500 0

Vista Equity VI 60,000,000 55,379,243 900,000 87,427 158,370 0 0 0

Vista Equity VII 75,000,000 (62,271) 0 61,648 0 0 0 0

7

Section 6254.26 Disclosure: Retirement FundPrivate Equity: Since inception data

(1) These commitments are early in their respective investment periods, therefore return metrics are not meaningful.


Investment Address Vintage Commitment Contributions DistributionsRemaining

ValueTotal Value Net IRR Gross IRR

Net Inv.

Multiple

Adams Street SMB I Chicago, IL 2017 125,000,000 27,500,000 0 28,300,351 28,300,351 3.5% 6.7% 1.03

Apollo IX (1) New York, NY 2018 54,200,000 0 0 (712,865) (712,865) N/A N/A N/A

Apollo VIII New York, NY 2014 34,000,000 32,954,965 11,134,518 28,737,816 39,872,334 9.8% 17.0% 1.21

Ares Corp. Opp. IV Los Angeles, CA 2012 25,000,000 26,804,313 14,575,699 22,675,725 37,251,424 12.0% 19.0% 1.39

Ares Corp. Opp. V Los Angeles, CA 2017 60,000,000 25,491,681 1,032,930 23,912,900 24,945,830 (2.5%) 6.5% 0.98

Ares SS IV Los Angeles, CA 2015 50,000,000 45,158,221 4,788,114 33,936,625 38,724,739 (9.0%) (7.4%) 0.86

Audax Mezz. III New York, NY 2011 17,000,000 15,754,063 16,628,003 3,468,251 20,096,254 9.0% 14.9% 1.28

Blackstone TO II New York, NY 2015 50,000,000 35,738,422 11,978,123 33,497,371 45,475,494 12.4% 18.6% 1.27

CD&R IX New York, NY 2014 25,000,000 24,777,245 10,972,571 24,492,140 35,464,711 18.5% 26.2% 1.43

CD&R X New York, NY 2017 54,000,000 14,922,031 0 14,394,221 14,394,221 (7.4%) 5.6% 0.96

Crestview III New York, NY 2015 50,000,000 30,450,532 5,417,328 32,963,214 38,380,542 13.1% 26.0% 1.26

EnCap Energy IX Houston, TX 2013 17,000,000 18,860,036 13,179,178 11,773,621 24,952,799 13.2% 19.6% 1.32

EnCap Energy VIII Houston, TX 2011 12,500,000 13,696,958 7,972,532 4,078,129 12,050,661 (4.4%) (1.7%) 0.88

EnCap Energy X Houston, TX 2015 37,000,000 30,185,842 5,834,116 31,011,421 36,845,536 13.6% 15.7% 1.22

EnCap Energy XI Houston, TX 2017 50,000,000 5,360,672 0 4,123,817 4,123,817 (29.7%) (1.2%) 0.77

Fisher Lynch II San Mateo, CA 2008 20,000,000 17,630,000 15,812,291 14,084,771 29,897,062 9.2% 12.5% 1.7

HRJ Special Opp. II New York, NY 2008 20,000,000 17,950,000 23,250,000 4,672,178 27,922,178 7.0% 9.3% 1.56

Harvest VII New York, NY 2016 30,000,000 16,220,373 0 17,349,929 17,349,929 5.3% 8.8% 1.07

Industry Ventures VIII San Fra., CA 2016 37,500,000 15,000,000 637,007 19,494,729 20,131,736 76.7% 85.0% 1.34

Landmark Equity XIII Simsbury, CT 2006 30,000,000 28,798,328 30,630,797 6,847,936 37,478,733 5.3% 6.9% 1.3

Landmark Equity XIV Simsbury, CT 2008 30,000,000 29,067,112 30,886,443 6,130,639 37,017,082 8.5% 14.3% 1.27

Landmark Equity XV Simsbury, CT 2014 40,000,000 27,242,429 19,304,781 15,602,979 34,907,760 14.3% 20.5% 1.28

Lexington Capital IX (1) New York, NY 2018 75,000,000 0 0 2,245,512 2,245,512 N/A N/A N/A

Lexington Capital VI New York, NY 2006 30,000,000 31,839,795 40,999,135 3,245,677 44,244,812 6.9% 9.6% 1.39

Lexington Capital VII New York, NY 2009 30,000,000 26,483,743 32,412,731 8,993,050 41,405,781 14.2% 19.6% 1.56

Oaktree Principal V Los Angeles, CA 2009 16,000,000 15,055,844 10,122,145 7,350,802 17,472,947 3.2% 7.2% 1.16

Silver Lake IV Menlo Park, CA 2013 18,000,000 19,111,990 8,238,798 23,555,752 31,794,550 25.2% 37.0% 1.66

Silver Lake V Menlo Park, CA 2018 58,000,000 13,786,840 0 13,047,181 13,047,181 (13.8%) 2.0% 0.95

Vista Equity IV Austin, TX 2011 25,000,000 24,987,918 27,882,356 21,397,810 49,280,166 18.0% 24.0% 1.97

Vista Equity V Austin, TX 2014 50,000,000 57,375,341 44,944,466 55,002,021 99,946,487 22.6% 30.8% 1.74

Vista Equity VI Austin, TX 2016 60,000,000 55,360,125 14,672,424 55,379,243 70,051,667 16.6% 24.5% 1.27

Vista Equity VII (1) Austin, TX 2018 75,000,000 0 0 (62,271) (62,271) N/A N/A N/A

8

Section 7514.7 Disclosure: Health FundPrivate Equity: 2018 calendar year data



ExpensesOffsets

Other F&E

Paid to GP

Carried Interest

Paid

F&E Paid by Port.

Companies

Adams Street SMB I 25,000,000 5,660,070 77,989 10,426 0 0 0 0

Apollo IX 10,900,000 (143,362) 122,851 28,696 0 0 0 0

Apollo VIII 6,000,000 5,071,379 39,647 22,263 24,307 0 76,602 24,307

Ares Corp. Opp. IV 5,000,000 4,535,152 28,368 3,766 7,242 0 (1,782) 0

Ares Corp. Opp. V 12,000,000 4,782,580 180,000 18,842 1,113 0 0 0

Ares SS IV 10,000,000 6,787,325 75,715 19,713 0 0 0 0

Audax Mezz. III 3,000,000 612,042 13,233 1,272 267 0 4,200 0

Blackstone TO II 10,000,000 6,699,474 115,737 23,889 25,569 0 69,657 14,366

CD&R IX 5,000,000 4,898,426 25,094 21,461 25,094 0 9,875 0

CD&R X 11,000,000 2,932,155 165,000 55,419 72,227 0 0 0

Crestview III 10,000,000 6,592,639 175,000 25,158 20,171 0 0 20,171

EnCap Energy IX 3,000,000 2,077,698 35,256 546 0 0 0 0

EnCap Energy VIII 2,500,000 815,626 14,415 435 0 0 0 0

EnCap Energy X 7,000,000 5,867,026 67,306 671 0 0 0 0

EnCap Energy XI 10,000,000 824,763 150,000 775 0 0 0 0

Harvest VII 6,000,000 3,469,984 120,006 0 78,821 78,671 0 0

Industry Ventures VIII 7,500,000 3,898,946 112,500 0 0 0 0 0

Landmark Equity XIV 5,000,000 1,021,770 16,064 912 0 0 0 0

Landmark Equity XV 7,000,000 2,730,522 70,000 40,076 0 0 0 0

Lexington Capital IX 15,000,000 449,103 26,521 30,507 0 0 0 0

Lexington Capital VII 5,000,000 1,498,882 19,607 5,558 568 123,443 50,160 0

Oaktree Principal V 2,500,000 1,148,569 21,126 3,334 1,720 0 0 0

Silver Lake IV 3,000,000 3,925,984 28,838 1,761 1,611 284 38,528 1,611

Silver Lake V 12,000,000 2,699,412 158,000 67,016 11,684 772 0 11,684

Vista Equity IV 5,000,000 4,279,555 36,664 2,923 0 0 0 0

Vista Equity V 10,000,000 11,000,410 150,000 7,463 0 0 749,500 0

Vista Equity VI 12,000,000 11,075,850 180,000 17,485 31,675 0 0 0

Vista Equity VII 15,000,000 (12,455) 0 12,330 0 0 0 0

9

Section 6254.26 Disclosure: Health FundPrivate Equity: Since inception data


ValueTotal Value Net IRR Gross IRR

Net Inv.

Multiple

Adams Street SMB I Chicago, IL 2017 25,000,000 5,500,000 0 5,660,070 5,660,070 3.5% 6.7% 1.03

Apollo IX (1) New York, NY 2018 10,900,000 0 0 (143,362) (143,362) N/A N/A N/A

Apollo VIII New York, NY 2014 6,000,000 5,815,582 1,964,915 5,071,379 7,036,294 9.8% 17.0% 1.21

Ares Corp. Opp. IV Los Angeles, CA 2012 5,000,000 5,360,863 2,915,138 4,535,152 7,450,290 12.0% 19.0% 1.39

Ares Corp. Opp. V Los Angeles, CA 2017 12,000,000 5,098,336 206,586 4,782,580 4,989,166 (2.5%) 6.5% 0.98

Ares SS IV Los Angeles, CA 2015 10,000,000 9,031,644 957,623 6,787,325 7,744,948 (9.0%) (7.4%) 0.86

Audax Mezz. III New York, NY 2011 3,000,000 2,780,126 2,934,354 612,042 3,546,396 9.0% 14.9% 1.28

Blackstone TO II New York, NY 2015 10,000,000 7,147,684 2,395,625 6,699,474 9,095,099 12.4% 18.6% 1.27

CD&R IX New York, NY 2014 5,000,000 4,955,453 2,194,516 4,898,426 7,092,942 18.5% 26.2% 1.43

CD&R X New York, NY 2017 11,000,000 3,039,673 0 2,932,155 2,932,155 (7.4%) 5.6% 0.96

Crestview III New York, NY 2015 10,000,000 6,090,105 1,083,466 6,592,639 7,676,105 13.1% 26.0% 1.26

EnCap Energy IX Houston, TX 2013 3,000,000 3,328,242 2,325,737 2,077,698 4,403,435 13.2% 19.6% 1.32

EnCap Energy VIII Houston, TX 2011 2,500,000 2,739,394 1,594,842 815,626 2,410,468 (4.4%) (1.7%) 0.88

EnCap Energy X Houston, TX 2015 7,000,000 5,710,835 1,103,752 5,867,026 6,970,777 13.6% 15.7% 1.22

EnCap Energy XI Houston, TX 2017 10,000,000 1,072,135 0 824,763 824,763 (29.7%) (1.2%) 0.77

Harvest VII New York, NY 2016 6,000,000 3,244,074 0 3,469,984 3,469,984 5.3% 8.8% 1.07

Industry Ventures VIII San Fran., CA 2016 7,500,000 3,000,000 127,401 3,898,946 4,026,347 76.7% 85.0% 1.34

Landmark Equity XIV Simsbury, CT 2008 5,000,000 4,844,528 5,146,805 1,021,770 6,168,575 8.5% 14.3% 1.27

Landmark Equity XV Simsbury, CT 2014 7,000,000 4,767,422 3,372,531 2,730,522 6,103,053 14.2% 20.5% 1.28

Lexington Capital IX (1) New York, NY 2018 15,000,000 0 0 449,103 449,103 N/A N/A N/A

Lexington Capital VII New York, NY 2009 5,000,000 4,453,150 5,402,079 1,498,882 6,900,961 13.9% 19.6% 1.55

Oaktree Principal V Los Angeles, CA 2009 2,500,000 2,352,475 1,581,283 1,148,569 2,729,852 3.2% 7.2% 1.16

Silver Lake IV Menlo Park, CA 2013 3,000,000 3,185,330 1,373,135 3,925,984 5,299,119 25.2% 37.0% 1.66

Silver Lake V Menlo Park, CA 2018 12,000,000 2,852,446 0 2,699,412 2,699,412 (13.8%) 2.0% 0.95

Vista Equity IV Austin, TX 2011 5,000,000 4,802,952 5,576,472 4,279,555 9,856,027 18.5% 24.0% 2.05

Vista Equity V Austin, TX 2014 10,000,000 11,475,069 8,988,896 11,000,410 19,989,306 22.6% 30.8% 1.74

Vista Equity VI Austin, TX 2016 12,000,000 11,072,025 2,934,484 11,075,850 14,010,334 16.6% 24.5% 1.27

Vista Equity VII (1) Austin, TX 2018 15,000,000 0 0 (12,455) -12,455 N/A N/A N/A


Past performance is not necessarily indicative of future results. Actual performance may vary.10

Private Real Estate

11

• The Institution of Limited Partners Association (ILPA) private fund reporting template v.1.1

was modified slightly (certain field descriptions and footnote disclosure instructions) to

capture the requirements of the Code (“ILPA Template”).

• Completion requirements of the ILPA Template are to be included as a side letter provision in

all private fund commitments beginning January 1, 2017.

• Annual data submission requirements will be as of each calendar year-end in order to

correspond with the annual GAAP audits of the underlying private funds.

• 2018 year-end ILPA Template submission was requested from existing private fund

managers on a reasonable efforts basis.

For 2018, the completed ILPA Template was received from 20 of 20 eligible real estate private fund

investment managers.

• The disclosed Net IRRs are provided by the private real estate fund managers; the gross

IRRs are estimated based on StepStone's own calculations.

Note: The data contained in the ILPA Templates received from the Water & Power Employees’ Retirement

Plan private real estate fund managers that is included in the disclosures in this presentation are the

representation of each manager. While StepStone reviewed each template for reasonableness, we make no

representation as to the accuracy or completeness of the data disclosed and contained in the ILPA Template

or the disclosures in this presentation.

Approach

12

Investment Commitment Ending Val.Mgmt.

Fee

Partnership

ExpensesOffsets

Other F&E

Paid to GP

Carried

Interest Paid

F&E Paid by Port.

Companies

AG Core Plus Realty Fund III 18,000,000 3,574,291 63,530 17,699 0 0 359,436 0

Almanac Realty Securities VI 18,000,000 5,061,526 42,947 11,479 0 258 62,656 0

Almanac Realty Securities VII 24,000,000 17,190,585 222,989 21,086 0 2,223 2,035 0

Almanac Realty Securities VIII (1) 60,000,000 (105,586) 195,205 89,235 0 9,204 0 0

Blackstone Real Estate Partners Europe IV 20,000,000 10,828,764 110,598 32,999 0 0 359,341 0

Blackstone Real Estate Partners VII 20,000,000 14,588,544 163,608 62,019 0 88 259,051 5,293

Bristol Value Fund II (2) 20,000,000 14,600,847 192,929 0 0 5,256 0 0

Brookfield Premier Real Estate Partners (1) 60,000,000 60,515,060 151,943 43,922 0 0 0 118,050

DRA Growth & Income Fund VII 13,000,000 7,448,490 131,586 39,312 0 3,952 0 4,147

DRA Growth & Income Fund VIII 20,000,000 16,818,507 324,760 52,933 0 6,667 0 0

DRA Growth & Income Fund IX 50,000,000 25,017,026 521,045 222,715 0 0 0 0

FPA CP III 50,000,000 45,413,893 244,300 31,687 0 0 0 234,714

Harrison Street Core Property Fund 50,000,000 62,949,431 645,411 329,937 0 0 0 0

Invesco Core Real Estate - USA 30,000,000 60,068,573 438,660 0 0 0 0 0

Jamestown Premier Property Fund 50,000,000 45,405,171 421,181 89,693 0 43,731 3,416,773 386,380

JP Morgan Strategic Property Fund 50,000,000 86,273,670 810,196 0 0 0 0 0

La Salle Asia Opportunity V (1) 50,000,000 10,526,445 749,999 274,852 0 0 0 0

Lone Star Fund VII (3) 9,000,000 89,947 0 1,138 0 0 0 0

Lone Star Real Estate Fund II (3) 9,000,000 358,500 700 1,602 0 0 0 0

Lone Star Real Estate Fund IV (3) 40,434,694 27,670,527 98,490 18,147 0 0 148,232 0

Lone Star Real Estate Fund V (1),(3) 78,760,695 6,392,334 980,029 939,590 0 0 0 0

Mesa West Real Estate Income Fund III 20,000,000 3,212,827 75,659 21,247 0 0 0 9,891

Mesa West Real Estate Income Fund IV 50,000,000 15,826,403 675,000 82,896 0 0 0 32,942

PCCP First Mortgage Fund II 20,000,000 0 0 9,671 0 0 0 0

Prologis Targeted US Logistics Fund 20,000,000 35,380,627 160,185 25,901 0 0 0 0

Prudential PRISA 50,000,000 93,888,668 825,446 49,071 0 0 0 0

Prudential PRISA II 21,500,000 42,910,906 485,343 37,377 0 0 0 0

Torchlight Debt Opportunity Fund IV 20,000,000 7,821,116 145,838 68,900 0 0 0 0

Torchlight Debt Opportunity Fund V 24,000,000 16,995,316 288,000 69,462 0 0 0 0

Torchlight Debt Opportunity Fund VI (1) 50,000,000 2,844,145 612,636 145,505 0 0 0 0

USAA Eagle Real Estate Fund (1) 60,000,000 19,902,913 37,896 1,214 0 0 0 0

Westbrook Real Estate Fund X 50,000,000 22,915,494 761,900 452,888 0 0 0 0

Section 7514.7 Disclosure: Retirement FundPrivate Real Estate: 2018 calendar year data


(2) Bristol Value Fund II did not provide allocated partnership expenses.

(3) Lone Star utilizes the services of affiliate Hudson Advisors for various asset management and valuation services for which each of the

partnerships pay applicable fees. Lone Star did not disclose these payments.

Past performance is not necessarily indicative of future results. Actual performance may vary.13

Section 6254.26 Disclosure: Retirement FundPrivate Real Estate: Since inception data



Investment Address Vintage Commitment Contributions Distributions

Ending

Market

Value

Total

Ending

Value

Since

Inception

Net IRR

Since

Inception

Gross IRR

Net Equity

Multiple

AG Core Plus Realty Fund III New York, NY 2011 18,000,000 17,184,511 25,241,636 3,574,291 7,402,045 20.7% 26.5% 1.7

Almanac Realty Securities VI New York, NY 2012 18,000,000 11,167,328 10,603,292 5,061,526 5,061,526 13.1% 17.1% 1.4

Almanac Realty Securities VII New York, NY 2014 24,000,000 17,528,855 4,822,122 17,190,585 26,052,134 14.4% 22.8% 1.3

Almanac Realty Securities VIII (1) New York, NY 2018 60,000,000 150,942 0 (105,586) 59,743,472 NM NM NM

Blackstone Real Estate Partners Europe IV New York, NY 2013 20,000,000 20,052,693 18,784,707 10,828,764 14,162,790 15.0% 23.3% 1.5

Blackstone Real Estate Partners VII New York, NY 2011 20,000,000 23,730,794 23,172,689 14,588,544 17,567,654 16.4% 26.0% 1.6

Bristol Value Fund II San Francisco, CA 2011 20,000,000 17,572,223 8,282,430 14,600,847 19,972,694 10.8% 13.6% 1.2

Brookfield Premier Real Estate Partners (1) New York, NY 2018 60,000,000 60,000,000 0 60,515,060 60,515,060 NM NM NM

DRA Growth & Income Fund VII New York, NY 2011 13,000,000 13,884,357 21,163,868 7,448,490 7,833,290 20.5% 25.8% 2.1

DRA Growth & Income Fund VIII New York, NY 2013 20,000,000 23,371,966 13,197,960 16,818,507 17,603,692 12.2% 15.5% 1.3

DRA Growth & Income Fund IX New York, NY 2016 50,000,000 28,410,843 8,544,458 25,017,026 52,162,862 21.4% 25.5% 1.2

FPA CP III Irvine, CA 2016 50,000,000 76,445,083 34,497,908 45,413,893 49,571,036 5.4% 6.0% 1

Harrison Street Core Property Fund Chicago, Il 2016 50,000,000 58,042,780 8,042,780 62,949,431 62,949,431 9.1% 10.2% 1.2

Invesco Core Real Estate - USA Atlanta, GA 2011 30,000,000 41,023,861 11,023,857 60,068,573 60,068,573 10.4% 11.4% 1.7

Jamestown Premier Property Fund San Francisco, CA 2016 50,000,000 59,494,998 26,653,343 45,405,171 45,405,171 9.7% 12.3% 1.2

JP Morgan Strategic Property Fund New York, NY 2007 50,000,000 55,995,201 5,995,651 86,273,670 86,273,670 5.1% 6.1% 1.6

La Salle Asia Opportunity V (1) Chicago, IL 2016 50,000,000 13,205,638 1,138,733 10,526,445 48,820,449 NM NM NM

Lone Star Fund VII Dallas, TX 2009 9,000,000 8,445,281 14,737,355 127,018 681,737 49.0% 71.2% 1.8

Lone Star Real Estate Fund II Dallas, TX 2009 9,000,000 7,974,885 11,945,969 902,071 1,927,186 25.7% 36.9% 1.5

Lone Star Real Estate Fund IV Dallas, TX 2015 40,434,694 31,760,324 16,668,010 27,670,527 36,344,897 20.2% 25.9% 1.4

Lone Star Real Estate Fund V (1) Dallas, TX 2017 77,216,368 11,517,730 3,359,278 6,392,334 73,296,232 NM NM NM

Mesa West Real Estate Income Fund III Los Angeles, CA 2012 20,000,000 15,151,344 16,293,801 3,212,827 3,212,827 9.1% 12.1% 1.3

Mesa West Real Estate Income Fund IV Los Angeles, CA 2016 50,000,000 15,555,555 1,207,941 15,826,403 50,270,848 8.1% 51.6% 1.1

PCCP First Mortgage Fund II Los Angeles, CA 2012 20,000,000 22,899,244 26,136,202 0 0 6.3% 7.1% 1.1

Prologis Targeted US Logistics Fund San Francisco, CA 2015 20,000,000 23,118,884 3,118,884 35,380,627 35,380,627 17.7% 20.4% 1.7

Prudential PRISA San Francisco, CA 2006 50,000,000 54,989,832 0 93,888,668 93,888,668 4.9% 5.8% 1.7

Prudential PRISA II San Francisco, CA 2007 21,500,000 23,691,545 0 42,910,906 42,910,906 6.2% 7.3% 1.8

Torchlight Debt Opportunity Fund IV New York, NY 2012 20,000,000 25,874,410 26,481,348 7,821,116 7,821,116 10.6% 14.3% 1.3

Torchlight Debt Opportunity Fund V New York, NY 2015 24,000,000 14,400,000 1,507,280 16,995,316 26,595,316 14.1% 22.2% 1.3

Torchlight Debt Opportunity Fund VI (1) New York, NY 2018 50,000,000 5,000,000 2,131,553 2,844,145 49,975,698 NM NM NM

USAA Eagle Real Estate Fund (1) San Antonio, TX 2018 60,000,000 19,800,602 0 19,902,913 60,246,311 NM NM NM

Westbrook Real Estate Fund X New York, NY 2015 50,000,000 25,449,471 5,723,778 22,915,494 53,241,418 12.4% 23.6% 1.1

14


(2) Bristol Value Fund II did not provide allocated partnership expenses.

(3) Lone Star utilizes the services of affiliate Hudson Advisors for various asset management and valuation services for which each of the

partnerships pay applicable fees. Lone Star did not disclose these payments.


Section 7514.7 Disclosure: Health FundPrivate Real Estate: 2018 calendar year data

Investment Commitment Ending Val.Mgmt.

Fee

Partnership

ExpensesOffsets

Other F&E

Paid to GP

Carried

Interest Paid

F&E Paid by Port.

Companies

AG Core Plus Realty Fund III 2,000,000 397,145 7,059 1,966 0 0 39,937 0

Almanac Realty Securities VI 2,000,000 562,392 4,771 1,275 0 29 6,962 0

Almanac Realty Securities VII 6,000,000 4,297,646 55,746 5,271 0 556 509 0

Almanac Realty Securities VIII (1) 15,000,000 -26,396 48,801 22,309 0 2301 0 0

Blackstone Real Estate Partners Europe IV 5,000,000 2,707,191 27,649 8,250 0 0 89,835 0

Blackstone Real Estate Partners VII 5,000,000 3,647,147 40,901 15,505 0 22 64,763 1323

Bristol Value Fund II (2) 5,000,000 3,650,212 48,232 0 0 1314 0 0

Brookfield Premier Real Estate Partners (1) 15,000,000 15,128,765 37,986 10,980 0 0 0 29512

DRA Growth & Income Fund VII 3,100,000 1,776,178 31,292 9,374 0 942 0 989

DRA Growth & Income Fund VIII 5,000,000 4,204,627 81,190 13,233 0 1667 0 0

DRA Growth & Income Fund IX 10,000,000 5,003,405 104,208 44,543 0 0 0 0

FPA CP III 10,000,000 9,082,779 48,860 6,337 0 0 0 46943

Harrison Street Core Property Fund 10,000,000 12,589,886 129,083 65,987 0 0 0 0

Invesco Core Real Estate - USA 5,000,000 10,010,207 73,101 0 0 0 0 0

Jamestown Premier Property Fund 10,000,000 9,081,034 84,236 17,939 0 8747 683,355 77276

JP Morgan Strategic Property Fund NA NA NA NA NA NA NA NA

La Salle Asia Opportunity V (1) 10,000,000 2,105,289 149,999 54,970 0 0 0 0

Lone Star Fund VII (3) 1,000,000 9,933 0 126 0 0 0 0

Lone Star Real Estate Fund II (3) 1,000,000 39,837 77 178 0 0 0 0

Lone Star Real Estate Fund IV (3) 8,086,939 5,534,103 19,699 3,629 0 0 29,646 0

Lone Star Real Estate Fund V (1),(3) 13,898,946 1,128,058 172,947 165,810 0 0 0 0

Mesa West Real Estate Income Fund III 5,000,000 803,207 18,915 5,311 0 0 0 2473

Mesa West Real Estate Income Fund IV 10,000,000 3,165,281 135,000 16,578 0 0 0 6588

PCCP First Mortgage Fund II 5,000,000 0 0 2,416 0 0 0 0

Prologis Targeted US Logistics Fund 5,000,000 8,845,157 40,046 6,475 0 0 0 0

Prudential PRISA NA NA NA NA NA NA NA NA

Prudential PRISA II NA NA NA NA NA NA NA NA

Torchlight Debt Opportunity Fund IV 5,000,000 1,955,282 34,572 17,225 0 0 0 0

Torchlight Debt Opportunity Fund V 6,000,000 4,248,829 72,000 17,366 0 0 0 0

Torchlight Debt Opportunity Fund VI (1) 10,000,000 568,829 122,527 29,101 0 0 0 0

USAA Eagle Real Estate Fund (1) 15,000,000 4,975,729 9,474 303 0 0 0 0

Westbrook Real Estate Fund X 10,000,000 4,583,102 152,379 90,578 0 0 0 0

15

Section 6254.26 Disclosure: Health FundPrivate Real Estate: Since inception data



Investment Address Vintage Commitment Contributions Distributions

Ending

Market

Value

Total

Ending

Value

Since

Inception

Net IRR

Since

Inception

Gross IRR

Net Equity

Multiple

AG Core Plus Realty Fund III New York, NY 2011 2,000,000 1,909,390 2,804,626 397,145 822,451 20.7% 26.5% 1.7

Almanac Realty Securities VI New York, NY 2012 2,000,000 1,240,814 1,178,144 562,392 562,392 13.1% 17.1% 1.4

Almanac Realty Securities VII New York, NY 2014 6,000,000 4,382,214 1,205,530 4,297,646 6,513,034 14.4% 22.8% 1.3

Almanac Realty Securities VIII (1) New York, NY 2018 15,000,000 37,736 0 (26,396) 14,935,868 NM NM NM

Blackstone Real Estate Partners Europe IV New York, NY 2013 5,000,000 5,013,173 4,696,177 2,707,191 3,540,697 15.0% 23.3% 1.5

Blackstone Real Estate Partners VII New York, NY 2011 5,000,000 5,932,699 5,793,172 3,647,136 4,391,913 16.4% 26.0% 1.6

Bristol Value Fund II San Francisco, CA 2011 5,000,000 4,393,056 2,070,607 3,650,212 4,993,174 10.8% 13.6% 1.2

Brookfield Premier Real Estate Partners (1) New York, NY 2018 15,000,000 15,000,000 0 15,128,765 15,128,765 NM NM NM

DRA Growth & Income Fund VII New York, NY 2011 3,100,000 3,310,885 5,046,769 1,776,178 1,776,178 20.5% 25.8% 2.1

DRA Growth & Income Fund VIII New York, NY 2013 5,000,000 5,842,991 3,299,490 4,204,627 4,400,923 12.2% 15.5% 1.3

DRA Growth & Income Fund IX New York, NY 2016 10,000,000 5,682,169 1,708,892 5,003,405 10,432,572 21.4% 25.5% 1.2

FPA CP III Irvine, CA 2016 10,000,000 15,289,017 6,899,582 9,082,779 9,914,207 5.4% 6.0% 1

Harrison Street Core Property Fund Chicago, Il 2016 10,000,000 11,608,556 1,608,556 12,589,886 12,589,886 9.1% 10.2% 1.2

Invesco Core Real Estate - USA Atlanta, GA 2011 5,000,000 6,837,310 1,837,310 10,010,207 10,010,207 10.4% 11.4% 1.7

Jamestown Premier Property Fund San Francisco, CA 2016 10,000,000 11,899,000 5,330,669 9,081,034 9,081,034 9.7% 12.3% 1.2

JP Morgan Strategic Property Fund New York, NY 2007 NA NA NA NA NA NA NA NA

La Salle Asia Opportunity V (1) Chicago, IL 2016 10,000,000 2,641,128 227,747 2,105,289 9,764,090 NM NM NM

Lone Star Fund VII Dallas, TX 2009 1,000,000 938,365 1,637,484 14,113 75,749 49.0% 71.2% 1.8

Lone Star Real Estate Fund II Dallas, TX 2009 1,000,000 886,098 1,327,330 100,230 214,132 25.7% 36.9% 1.5

Lone Star Real Estate Fund IV Dallas, TX 2015 8,086,939 6,352,065 3,333,602 5,534,106 7,268,980 20.2% 25.9% 1.4

Lone Star Real Estate Fund V (1) Dallas, TX 2017 15,443,274 2,303,546 671,856 1,128,058 14,508,838 NM NM NM

Mesa West Real Estate Income Fund III Los Angeles, CA 2012 5,000,000 3,787,836 4,073,450 803,207 803,207 9.1% 12.1% 1.3

Mesa West Real Estate Income Fund IV Los Angeles, CA 2016 10,000,000 3,111,111 241,588 3,165,281 10,054,170 8.1% 51.6% 1.1

PCCP First Mortgage Fund II Los Angeles, CA 2012 5,000,000 5,724,811 6,534,051 0 0 6.3% 7.1% 1.1

Prologis Targeted US Logistics Fund San Francisco, CA 2015 5,000,000 5,779,721 779,721 8,845,157 8,845,157 17.7% 20.4% 1.7

Prudential PRISA San Francisco, CA 2006 NA NA NA NA NA NA NA NA

Prudential PRISA II San Francisco, CA 2007 NA NA NA NA NA NA NA NA

Torchlight Debt Opportunity Fund IV New York, NY 2012 5,000,000 6,468,603 6,620,337 1,955,282 1,955,282 10.6% 14.3% 1.3

Torchlight Debt Opportunity Fund V New York, NY 2015 6,000,000 3,600,000 376,820 4,248,829 6,648,829 14.1% 22.2% 1.3

Torchlight Debt Opportunity Fund VI (1) New York, NY 2018 10,000,000 1,000,000 426,311 568,829 9,995,140 NM NM NM

USAA Eagle Real Estate Fund (1) San Antono, TX 2018 15,000,000 4,950,151 - 4,975,729 15,061,578 NM NM NM

Westbrook Real Estate Fund X New York, NY 2015 10,000,000 5,089,894 1,144,756 4,583,099 10,648,284 12.4% 23.6% 1.1

16

Timber

17

Section 7514.7/6254.26 Disclosure: Retirement FundTimber

2018 calendar year data

Since inception data


ExpensesOffsets

Other F&E

Paid to GP

Carried

Interest

Paid

F&E Paid by

Port.

Companies

Hancock Timberland 20,000,000 13,478,843 126,609 23,537 0 0 0 37,728

Molpus IV 20,000,000 17,665,823 180,116 5,431 0 0 0 99,031


ValueTotal Value

Since

Incep.

Net

IRR

Since

Incep.

Gross

IRR

Net Inv.

Multiple

Hancock Timberland Boston, MA 2014 20,000,000 13,248,397 447,112 13,478,843 13,925,955 2.0% N/A 1.05

Molpus IV Jackson, MS 2015 20,000,000 18,120,000 747,170 17,665,823 18,412,993 0.6% 1.6% 1.02

All data shown was provided to RVK directly by the investment managers.

18

Section 7514.7/6254.26 Disclosure: Health FundTimber




ExpensesOffsets

Other F&E

Paid to GP

Carried

Interest

Paid

F&E Paid by

Port.

Companies

Hancock Timberland 5,000,000 3,369,709 31,652 5,884 0 0 0 9,432

Molpus IV 5,000,000 4,416,456 45,029 1,358 0 0 0 24,758



ValueTotal Value

Since

Incep.

Net

IRR

Since

Incep.

Gross

IRR

Net Inv.

Multiple

Hancock Timberland Boston, MA 2014 5,000,000 3,312,099 111,778 3,369,709 3,481,487 2.0% N/A 1.05

Molpus IV Jackson, MS 2015 5,000,000 4,530,000 186,792 4,416,456 4,603,248 0.6% 1.6% 1.02

19

Hedge Funds

20

Section 7514.7/6254.26 Disclosure: Retirement FundHedge Funds




ExpensesOffsets

Other F&E

Paid to GP

Carried Interest

Paid

Blackstone Hope St. 588,859,680 589,757,216 4,011,802 0 0 0 62,994

MS Convergent 80,000,000 1,353,184 N/A N/A N/A N/A N/A


*Dollar amount shown represents the initial investment amount.

Investment Address Vintage Commitment* Contributions DistributionsRemaining

ValueTotal Value

Since

Incep.

Net

IRR

Since

Incep.

Gross

IRR

Aggregate

Net Profit

Blackstone

Hope St.New York, NY N/A 588,859,680 N/A N/A N/A N/A 0.1% 0.9% 897,536

MS

Convergent

West

Conshohocken, PAN/A 80,000,000 N/A N/A N/A N/A 1.2% 1.8% 5,252,416

21



Investment Address Vintage Commitment* Contributions DistributionsRemaining

ValueTotal Value

Since

Incep.

Net

IRR

Since

Incep.

Gross

IRR

Aggregate

Net Profit

Blackstone

Hope St.New York, NY N/A 95,702,395 N/A N/A N/A N/A 0.3% 1.1% 303,280

MS

Convergent

West

Conshohocken, PAN/A 13,000,000 N/A N/A N/A N/A 1.2% 1.8% 853,518

Section 7514.7/6254.26 Disclosure: Health FundHedge Funds


ExpensesOffsets

Other F&E

Paid to GP

Carried Interest

Paid

Blackstone Hope St. 95,702,395 96,005,674 671,086 0 0 0 10,255

MS Convergent 12,736,214 212,892 N/A N/A N/A N/A N/A


*Dollar amount shown represents the initial investment amount.

22

Disclaimer of Warranties and Limitation of Liability - This document was prepared by RVK, Inc. (RVK) and may include

information and data from some or all of the following sources: client staff; custodian banks; investment managers;

specialty investment consultants; actuaries; plan administrators/record-keepers; index providers; as well as other

third-party sources as directed by the client or as we believe necessary or appropriate. RVK has taken

reasonable care to ensure the accuracy of the information or data, but makes no warranties and disclaims

responsibility for the accuracy or completeness of information or data provided or methodologies

employed by any external source. This document is provided for the client’s internal use only

and does not constitute a recommendation by RVK or an offer of, or a solicitation for, any

particular security and it is not intended to convey any guarantees as to the future

performance of the investment products, asset classes, or capital markets.

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