Behind the Co-Investing Curtain, Part II
CPPIB QIC Memorial Hermann Health System Total AUM ($ USD B) $240 (C$317) $60 $3.0 Total PE AUM ($ USD M) $43,800 (C$57,800) $3,900 $0.3 Type of Plan Public Pension Superannuation Endowment Maturity of Co-Investment program 12 yrs. (since ~2005) 12 yrs. (since 2005) ~1 yr. Size of Co-Investment Team Passive Minorities: ~20 14 1 (also responsible Direct/Co-Sponsor: ~55 for funds) Total Private Equity Investment Staff ~105 14 1 (also responsible for co-invest) Co-Investment Opportunities Mix of syndicated, co- Mix of syndicated, co- Syndicated underwritten and co- underwritten and co- sponsored sponsored
• • • • •
How would you describe your organization’s co -investment program? 16 16 9 2 Considering, but no program is currently Passive, our co-inv. exposure is almost Advisor, a dedicated advisor manages the In-House (Opportunistic), our team is underway exclusively through commingled funds majority of our co-inv. Program always looking for great investments, but we don’t have a specific mandate to co - invest
• • • • • • •
Approximately what percent of diligence projects does your organization rely solely on GP-provided diligence memos (i.e., no independent due diligence)? 17 15 14 10 10 0% - We never exclusively-rely 1-25% - We sometimes 26-50% - We often exclusively- 51+% - We exclusively-rely on N/A – We don’t have a co - on GP memos exclusively-rely on GP memos rely on GP memos GP memos for most of our investment program / unsure diligence projects
• • • •
How does your organization typically approach underwriting a co-investment when it requests voluntary follow-on capital for an add-on acquisitions? (i.e., how do you evaluate the add-on target?) 25 25 13 1 Detailed Review of the add-on before Moderate Review of the add-on, focused on No Review, we do not typically underwrite N/A, we don’t have a co -investment committing the additional capital high-level red flags, before committing the the add-on acquisition program / unsure additional capital
• •
Which of the following best describes your personal viewpoint on LPs bearing broken deal fees on co-investments? 24 16 12 6 It’s never appropriate to bear any broken Is appropriate only when the co-investor Is appropriate only when the co-investor Is appropriate in most circumstances, but deal fees is also eligible to share in transaction fees is co-underwriting the deal (regardless of best-efforts should still be made to avoid (incl. monitoring fees and broken deal whether they share in transaction fees) paying them awards)
• • •
• • •
│ │ │
Recommend
More recommend
