Investor Reporting

Wednesday: Another pension reports carry ‘payments’, Carlyle C-Corp, more on ILPA 3.0

It's Wednesday, so we are taking our weekly look at investor reporting. Item one: another public pension is shedding light on how much it pays managers in carried interest.

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Disclosing carry

The rising tide of information requirements by investors continues. According to this article on Pensions & Investments, anyone managing capital for Maryland Employees Retirement & Pension System must – as of July 1 – disclose the amount of carried interest they are getting. Or to be more precise, the pension must report how much it is paying, so it needs the info. Managers in Maryland’s portfolio include Thoma Bravo, Bain Capital, Blue Wolf Capital Partners and Astorg Partners, according to data from sister publication Private Equity International. Several pensions have recently brought in consultants to work out how much they have been paying in fees and carry.

ILPA reactions

We have been gathering reactions to ILPA’s revised guidelines from LPs and GPs. Here are some of our headline findings:

– Transparency on credit line use is a good thing, but one GP points to the fact that the guidelines don’t acknowledge the conflict among investors between those that want them and those that don’t.

– Guidelines may be ignored. “In a market where demand for great funds is exceeding supply, GPs are able to further shy away from best practice,” says one pension fund investor.

Quotable

“Now most GPs have become comfortable with added transparency and the public scrutiny that comes with investing with public pension systems. But the transparency must be balanced by the need to be competitive in the marketplace, so public LPs also adhere to that balance.” – Gary Bruebaker, chief investment officer, Washington State Investment Board, talks to PEI.

Carlyle to convert

Bloomberg says Carlyle will follow Apollo and Blackstone and announce a switch to a C-corporation when it reports its Q2 earnings, citing sources “with knowledge of the matter”. Carlyle declined to comment on the potential switch.

Email prepared by Toby Mitchenall

PS. We have updated our list of secondaries advisers, which now includes details on Tullett Prebon.