Los Angeles Fire and Police Pensions August 3, 2017 Fairview Capital Partners, Inc. ▪ West Hartford, CT ▪ San Francisco, CA ▪ www.fairviewcapital.com ITEM: B.4
Fairview Has Built a Leading Venture Capital and Private Equity Investment Platform The Fairview Capital Investment Platform Independent, S EC registered private equity investment management firm founded in 1994, S tatus with aggregate fund capitalization of $3.9 billion since inception Manage 24 customized separate accounts and funds of funds Accounts Extensive experience developing intelligent venture capital and private equity solutions Expertise designed to help institutional investors successfully access high quality opportunities Fully embedded in the venture capital and private equity community - serving on 49 Access firm advisory boards S easoned multi-generational team well positioned for the future Team Integrated team approach to doing business with strong teams focused on investment, Approach account/ finance and client service Commitment to providing institutional investors with superior risk-adj usted returns and S ervice the highest quality client service in the asset class 1
The Team Dedicated to LAFPP S pecialized Private Equity Manager Program JoAnn Price Lesley Nettles Cynthia Tseng, CF A Co-founder/ Managing Partner Principal Partner • President of the • Investment banker • Business National Association focused on development of Investment convertible bond positions within Bank Companies and equity of America’ s asset • Chair of the origination at management Hartford Foundation JPMorgan subsidiaries • Director for for Public Giving and • Equity research board of directors of Columbia associate at the Apollo Theater Management Group JPMorgan Foundation focuses on • Board of directors • Former independent developing the firm’ s of The Association director of the national public fund of Asian American Vantagepoint Mutual business strategy Investment Fund headquartered • VP at Progress Managers in Washington, D.C. Investment • MBA from Wharton • B.A. from Howard Management and B.A. in Applied University Company Mathematics / • B.A. from University Economics from of California Brown University Berkeley 2
LAFPP S pecialized Private Equity Manager Program – Investment S trategy Overview and S tatus Interactions Background: Fairview selected as non-discretionary advisor • Market intelligence by the LAFPP Board of Administration • Pipeline review Commitment: $50 million • Due diligence and investment Inception: November 1, 2016 recommendation • S haring of formal Investments: 3 underlying portfolio fund commitments to date* research * As of March 31, 2017 Fund Portfolio Construction Fairview’s Allocation Policy for Primary Attributes LAFPP Specialized PE Manager Program $50mm mandate over 3-year time period First, second and third time funds Target Target Strategy Range Allocation Funds <$500mm Buyout 40% -60% 50% S trategy: S mall / Mid-market buyout, Growth Equity, Venture Growth Equity / and Opportunistic S trategies 20% -50% 35% Venture Diversification across vintage years Opportunistic Approximately 10 investments 0% -30% 15% S trategies Total 100% 3
LAFPP S pecialized Private Equity Manager Program Underlying Partnerships (as of 3/ 31/ 2017) Fund Size Vintage Commitment Fund Name Strategy Location ($MM) Year ($MM) $350 1 Argand Partners Fund I, L.P. Buyout 2016 New York, NY $5.0 Centana Growth Partners, L.P. Growth Equity $250 2016 Palo Alto, CA / New York, NY $5.0 Greycroft Growth II, L.P. Growth Equity $250 2017 Los Angeles, CA / New York, NY $5.0 1. Argand Partners Fund I has a target fund size of $500mm Investment S trategy* Vintage Y ear* Buyout Vintage 2017 33% 33% Growth Vintage 2016 Equity 67% 67% *Percentages calculated based on investment commitments. Percentages subj ect to change over investment period of the program 4
Fairview’s Pipeline for LAFPP S pecialized Private Equity Manager Program is S trong Pipeline - S creening for LAFPP (since inception in 2016) Access to the Access to the specialized specialized Industry Conferences Advisory Board Industry Research Open Door Policy S peaking Engagements Participation manager manager universe universe S S trong industry trong industry Deal Flow= 114 networks across networks across multiple multiple dimensions dimensions Initial Stage = 37 Continuous Continuous Stage 1 = 17 market research market research Stage 2 = 9 Rigorous Rigorous manager manager Declined = 48 selection model selection model Open and Open and Committed = 3 responsive to responsive to managers managers Opportunities Ahead… Opportunities Ahead… There are 63 funds currently in various stages of active due diligence There are 63 funds currently in various stages of active due diligence 5
Argand Partners Fund I, L.P . Fund Overview Current Investment Argand Partners Firm Name: New York, NY Location: S S igma Electric igma Electric 2015 Founded: Manufacturing Manufacturing Fund Size: $350 million (target $500 million) Strategy: Buyout S igma Electric is a leading, vertically integrated Heather Faust, Howard Morgan, and Tariq General Partners: manufacturer of electrical fittings and other precision Osman engineered solutions. The company serves as a trusted, reliable supply chain partner to a global customer base. Communication S igma Electric manufactures and sells metal castings, Investment Focus inj ection molded products, and accessories used in a Argand seeks to achieve subst antial long-term capital variety of industries including commercial, industrial and appreciation for invest ors with relatively low operating and residential construction, and power transmission. financial risk. Argand will typically serve as a control or lead investor in companies principally located in North America. S igma offers a compelling customer value proposition Argand focuses on businesses with leading or highly- supported by: defensible market positions led by proven management t eams investing meaningful amounts of equity alongside the Fund. S ignificant engineering capabilities The firm t argets industries with predictable / long-term Low-cost manufacturing demand. Just-in-time supply chain capabilities A comprehensive product portfolio Note: Data as of March 31, 2017 6
Centana Growth Partners, L.P . Fund Overview Current Investment Examples Firm Name: Centana Growth Partners Location: Palo Alto, CA / New York, NY Blueprint Blueprint Founded: 2015 Fund Size: $250 million Strategy: Growth Equity Blueprint S ystems is a leading enterprise software company in the application lifecycle management space. The company provides a software solution that helps General Partners: Eric Byunn and Ben Cukier organizations build better business applications. Over two-thirds of sales stem from the financial services end-market. S ince 2013, the company has experienced a 75% compound annual growth rate in annualized bookings. Investment Focus Jumio Jumio Centana seeks to invest in companies that have reached a stage of development where additional capital, expertise and other resources can further catalyze rapid growth. These companies are typically too small to pursue the public Jumio is a leading identity management and credentials authentication company markets and favor equity invest ments rather than debt that helps businesses reduce identity fraud and improve the user experience. The company has large enterprise customers such as AirBnB, United Airlines, Lloyds Bank financing. Centana targets companies that offer and E-Trade, in addition to over 200 others across a variety of verticals. Jumio’ s differentiated product s with profitable unit economics. new executive team is focused on execution and has demonstrated long-term Further, Centana targets companies that maintain high levels commitment to the company’ s proven growth strategy. of capital efficiency, enabling businesses to withst and negative impacts from potential economic downturns. Vena Vena S S olutions olutions Vena S olutions provides a software for managing business-critical spreadsheets, including those addressing corporate performance and regulatory reporting. With key customers such as Wells Fargo, Morgan S tanley, PNC and BNP Paribas, the plat form offers financial analytics for CCAR, the Federal Reserve’ s bank stress test. The company experienced over 100% year over year annual recurring revenue growth over the past three years. Note: Data as of March 31, 2017 7
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