In CalPERS’ Quest to Get Carried Interest Data, Not Everyone Cooperating

Calpers

In June, CalPERS began collecting historical carried interest data from its general partners as part of a long-term project to develop a more robust reporting and monitoring system for its investments.

The vast majority of firms have now delivered the information to the pension fund, but not every general partner is cooperating.

Now, even as CalPERS readies to release it’s carried interest data to the public eye, several firms are holding out.

From the Wall Street Journal:

Among the firms that didn’t provide the information to Calpers in the requested form was Khosla Ventures , the eponymous firm of well-known venture capitalist Vinod Khosla . A spokeswoman for the firm said it “adheres to the disclosure requirements in the applicable legal agreements.”

Other firms that didn’t fully disclose fees included Pinnacle Ventures and Generation Partners, according to the FOIA request. Officials at the firms didn’t respond to requests for comment.

[…]

All of Calpers ‘s 10 largest private equity managers gave the full information it needed, according to an analysis of the public records by Dow Jones, highlighting its sway over those firms with which it invests the most.

[…]

Some managers that weren’t fully forthcoming were venture firms behind funds that are relics of the fast and furious dot-com era, a period not known for being investor-friendly. Several of these funds, while technically active, are now reaching the end of their lives and have struggled to deliver strong returns.

In part from concerns that it can’t get enough disclosure from venture-capital firms, Calpers has been cutting its exposure to these strategies down to a sliver, said people with knowledge of the matter.

CalPERS officials have said that moving forward, a manager’s willingness to disclose carried interest and other fee data will be a decisive factor in CalPERS’ desire to invest with that manager.

 

Photo by  rocor via Flickr CC License

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