We have been active investors in the private equity industry since the early 1990s and since then have enjoyed relationships with a large number of high quality private equity firms. We will invest in both venture capital and buyout funds and seek to create a portfolio of fund investments that delivers a well-constructed and diversified private equity exposure for our investors. We, therefore, seek managers with differentiated capabilities that complement one another and we generally prefer managers whose fund sizes are modest and consistent with their strategies, capabilities and track record.

We have enjoyed long-term relationships with many of these firms and are still investing with some managers with whom we invested at our inception. We also recognize that teams change over time and that strategies and capabilities evolve and we therefore reevaluate our relationships regularly and actively seek to establish new relationships.

Criteria for selecting managers: Our investment decisions are based on a number of factors, including track record, investment strategy, investment team, organization, firm reputation, and fund terms. We generally seek equity oriented strategies managed by teams that have verifiable experience as private equity investors.

Emerging managers: While our funds tend to emphasize proven firms that have deployed multiple funds together as a team, we also actively seek emerging teams who are deploying a first or second generation fund. We have invested in emerging funds in all of our primary funds of funds and this element of the portfolio has led to a number of continuing relationships as well as constituted an important contributor to our overall investment returns.