2013 quarter 1 performance update

Returns as reported through March 2013

Private Equity Performance Update

2

Contents

Page

Private Equity Benchmarks ………………………………………………………………………………. 3

Cambridge Associates ……………………………………………………………………………………. 5

Preqin ………………………………………………………………………………………………………….. 6

PitchBook……………………………………………………………………………………………………… 8

Pension Funds …………………………………………………………………………………………………… 9

Appendix ……………………………………………………………………………………………………………. 14

Description of Private Equity Benchmarks ………………………………………………………… 15

Detailed Performance of Pension Funds …………………………………………………………… 16

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Private Equity Benchmarks

3

4

Private Equity Performance (as of March 31, 2013)

4

Private Equity Benchmark Returns (Horizon IRR)1 1-Year 3-Year 5-Year 10-Year

Cambridge Associates U.S. Private Equity Index (excluding venture capital) 12.6% 15.2% 8.0% 14.6%

Cambridge Associates U.S. Buyout Fund Index 14.6% 15.6% 7.8% 14.8%

Cambridge Associates U.S. Growth Equity Index 10.0% 15.3% 9.1% 13.4%

Preqin Performance Analyst (including venture capital) 11.3% 14.2% 6.3% 19.2%

Preqin Performance Analyst (buyouts only) 13.4% 16.0% 7.2% 24.7%

ILPA U.S. Private Equity Index (excluding venture capital) 12.8% 15.3% 8.0% 14.5%

Public Market Returns 1-Year 3-Year 5-Year 10-Year

Russell 3000 Index (including dividends) 14.6% 13.0% 6.3% 9.2%

S&P 500 Index (excluding dividends) 11.4% 10.3% 3.5% 6.3%

S&P 500 Index (including dividends) 14.0% 12.7% 5.8% 8.5%

Analysis 1-Year 3-Year 5-Year 10-Year

Median Private Equity Benchmark Return (excluding venture capital)2 12.8% 15.3% 8.0% 14.6%

Private Equity Benchmark Outperformance (excluding venture capital)3 -1.1% 2.6% 2.2% 6.1%

(Performance figures are based on most recent publicly available information.)

1. Cambridge Associates U.S. Buyout Fund Index, Cambridge Associates U.S. Growth Equity Index and ILPA (Institutional Limited Partners Association) U.S. Private Equity Index are newly introduced in this quarter. Please see slide 15 for more details. March 31, 2013 performance figures from PitchBook and Thomson Reuters are not available at the time of analysis (October 1, 2013). 2. Calculated by taking the median of Cambridge Associates U.S. Private Equity Index (excluding venture capital), Preqin Performance Analyst (buyouts only) and ILPA U.S. Private Equity Index (excluding venture capital). 3. Calculated by subtracting the S&P 500 Index (including dividends) return from the median private equity benchmark return. Returns are reported net of fees, unless otherwise stated. Returns exceeding one year are annualized.

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2.1%

55.9%

-13.6%

12.6%

3.0%

45.4%

-16.7%

14.6%

25.0%

10.0%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Private Equity Buyout Growth EquityAnnual One-Year Horizon IRR

Cambridge Associates U.S. Private Equity Indices

Each data point represents an annual growth rate. Data points above 0% represent positive growth. Annual one-year horizon IRRs are as of March 31st. Returns for Cambridge Associates U.S. Growth Equity Index begin at March 31, 2004. Source: Cambridge Associates LLC

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6

Preqin Performance Analyst: Private Equity

Each data point represents an annual growth rate. Data points above 0% represent positive growth. Except for March 2013, annual one-year horizon IRRs are as of December 31st. Source: Preqin

8

Annual One-Year Horizon IRR

10.1%

29.1%

-27.6%

18.8%

12.9% 11.3%

3.6%

32.3%

-31.0%

22.6%

15.1% 13.4%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Mar.2013

All Private Equity Buyouts Only

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Private Equity Performance (as of December 31, 2012)

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Private Equity Benchmark Returns (Horizon IRR)1 1-Year 3-Year 5-Year 10-Year

Cambridge Associates U.S. Private Equity Index (excluding venture capital) 13.8% 15.2% 6.7% 14.1%

PitchBook U.S. Private Equity Median Return (excluding venture capital) 11.2% 12.9% 4.6% 16.9%

Preqin Performance Analyst (including venture capital) 12.9% 13.3% 4.1% 17.9%

Preqin Performance Analyst (buyouts only) 15.1% 15.3% 4.5% 24.3%



S&P 500 Index (excluding dividends) 13.4% 8.5% -0.6% 4.9%


Analysis 1-Year 3-Year 5-Year 10-Year

Median Private Equity Benchmark Return (excluding venture capital)2 13.8% 15.2% 4.6% 16.9%

Private Equity Benchmark Outperformance (excluding venture capital)3 -2.2% 4.3% 3.0% 9.8%


1. December 31, 2012 performance figures from Thomson Reuters are not available at the time of analysis (October 1, 2013). 2. Calculated by taking the median of Cambridge Associates U.S. Private Equity Index (excluding venture capital), PitchBook U.S. Private Equity Median (excluding venture capital) and Preqin Performance Analyst (buyouts only). 3. Calculated by subtracting the S&P 500 Index (including dividends) return from the median private equity benchmark return. Returns are reported net of fees, unless otherwise stated. Returns exceeding one year are annualized.

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PitchBook U.S. Private Equity Median Return

Each data point represents an annual growth rate. Data points above 0% represent positive growth. Annual one-year horizon IRRs are as of December 31st. Source: PitchBook

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Annual One-Year Horizon IRR

-4.7%

8.4%

19.9%

12.6%

0.9%

9.0%

11.2%

-10%

-5%

0%

5%

10%

15%

20%

25%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Pension Funds

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Pension Fund Private Equity Performance (as of March 31, 2013)

Pension Fund Private Equity Returns (Time-Weighted Return)1 1-Year 3-Year 5-Year 10-Year

California Public Employees' Retirement System 13.8% 14.3% 5.5% 11.9%

Colorado Public Employees’ Retirement Association 4.5% 12.5% 4.0% N/A

Connecticut Retirement Plans and Trust Funds 9.1% 11.6% 5.3% 9.0%

Louisiana Teachers' Retirement System 11.8% 13.3% 4.3% 14.2%

Michigan Public School Employees Retirement System 14.5% 15.3% 6.1% 14.0%

Minnesota State Board of Investment 11.7% 12.9% 5.5% 15.3%

Mississippi Public Employees' Retirement 10.8% 7.1% N/A N/A

Nebraska Investment Council 6.2% 13.3% 4.8% N/A

New Jersey Division of Investment 13.1% 11.1% 4.7% N/A

North Carolina Retirement System 5.3% 8.4% 2.6% 6.7%

Oregon Public Employees' Retirement System 14.1% 13.1% 5.6% N/A

Pennsylvania Public School Employees' Retirement System 13.2% 12.7% 4.6% 14.2%

Texas Teacher Retirement System 16.0% 14.8% 5.2% N/A

Virginia Retirement System 13.3% 12.9% 4.7% 14.7%

Washington State Investment Board 13.8% 12.7% 3.8% 13.5%



S&P 500 Index (excluding dividends) 11.4% 10.3% 3.5% 6.3%



1. Pension fund private equity investment returns reflect the performance of the asset class itself, as well as the fund manager’s ability to identify profitable investment opportunities. The private equity asset class may be defined differently depending on the pension fund. Pension funds included in this report are among the top 50 largest pension funds with publicly available information at the time of analysis (October 1, 2013). These pension funds do not fully represent the performance of private equity investments in the entire universe of pension funds. Returns are reported net of fees, unless otherwise stated. Returns over periods exceeding one year are annualized.

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11

12.8%

15.3%

8.0%

14.6%

13.1% 12.9%

4.8%

14.0%

14.6%

13.0%

6.3%

9.2%

14.0%

12.7%

5.8%

8.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

1-Year 3-Year 5-Year 10-Year

Return Private Equity Benchmark Pension Fund Private Equity Investments Russell 3000 Index Total Return S&P 500 Index Total Return

Private Equity Performance Compared to Public Market Returns (as of March 31, 2013)

1 2

1. Median of Cambridge Associates U.S. Private Equity Index, Preqin Performance Analyst and ILPA U.S. Private Equity Index. See slide 4 for details. 2. Median return of pension fund private equity investments included in this report. See slide 10 for details. Performance figures of private equity benchmarks are reported as IRRs, while those of pension fund private equity investments are reported as time-weighted returns. Pension fund private equity investment returns reflect the performance of the asset class itself, as well as the fund manager’s ability to identify profitable investment opportunities. The private equity asset class may be defined differently depending on the pension fund.

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Pension Fund Private Equity Performance (as of December 31, 2012)

Pension Fund Private Equity Returns (Time-Weighted Return)1 1-Year 3-Year 5-Year 10-Year

California Public Employees' Retirement System 12.2% 15.3% 5.8% 11.5%

Connecticut Retirement Plans and Trust Funds 10.2% 12.8% 5.7% 9.1%

Kentucky Teachers' Retirement System 9.0% 14.6% 10.9% N/A

Louisiana Teachers' Retirement System 13.0% 12.8% 3.8% 13.8%

Michigan Public School Employees Retirement System 14.3% 16.3% 5.7% 13.5%

Nebraska Investment Council 9.6% 15.0% 4.6% N/A

New Jersey Division of Investment 12.1% 11.5% 3.8% N/A

North Carolina Retirement System 5.7% 8.4% 2.7% 6.3%

Oregon Public Employees' Retirement System 14.4% 14.0% 5.2% N/A

Pennsylvania Public School Employees' Retirement System 13.3% 12.9% 4.7% 13.7%

Texas Teacher Retirement System 16.4% 15.6% 4.8% N/A

Virginia Retirement System 14.4% 13.5% 4.5% 14.2%

Washington State Investment Board 14.6% 13.9% 2.5% 12.5%



S&P 500 Index (excluding dividends) 13.4% 8.5% -0.6% 4.9%



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1. Pension fund private equity investment returns reflect the performance of the asset class itself, as well as the fund manager’s ability to identify profitable investment opportunities. The private equity asset class may be defined differently depending on the pension fund. Pension funds included in this report are among the top 50 largest pension funds with publicly available information at the time of analysis (October 1, 2013). These pension funds do not fully represent the performance of private equity investments in the entire universe of pension funds. Returns are reported net of fees, unless otherwise stated. Returns over periods exceeding one year are annualized.

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13.8%

15.2%

4.6%

16.9%

13.0%

13.9%

4.7%

13.0%

16.4%

11.2%

2.0%

7.7%

16.0%

10.9%

1.7%

7.1%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1-Year 3-Year 5-Year 10-Year

Return Private Equity Benchmark Pension Fund Private Equity Investments Russell 3000 Index Total Return S&P 500 Index Total Return

Private Equity Performance Compared to Public Market Returns (as of December 31, 2012)

1 2

13

1. Median of Cambridge Associates U.S. Private Equity Index, PitchBook U.S. Private Equity Median Return and Preqin Performance Analyst. See slide 6 for details. 2. Median return of pension fund private equity investments included in this report. See slide 12 for details. Performance figures of private equity benchmarks are reported as IRRs, while those of pension fund private equity investments are reported as time-weighted returns. Pension fund private equity investment returns reflect the performance of the asset class itself, as well as the fund manager’s ability to identify profitable investment opportunities. The private equity asset class may be defined differently depending on the pension fund.

Appendix

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Private Equity Benchmarks

Cambridge Associates U.S. Private Equity Indices

The U.S. Private Equity Index is compiled using data from 1,052 U.S. private equity funds formed between 1986 and 2013. These funds include leveraged buyout, growth equity, private equity energy and mezzanine funds and exclude venture capital funds. The U.S. Buyout Fund Index and U.S. Growth Equity Index reflect the performance of 667 U.S. buyout funds and 143 U.S. growth equity funds, respectively. Funds making up both samples were formed between 1986 and 2013.

ILPA (Institutional Limited Partners Association) U.S. Private Equity Index

The ILPA U.S. Private Equity Index is a subset of ILPA Private Markets Benchmark and excludes the performance of venture capital funds. The ILPA Private Markets Benchmark is compiled using data from 2,626 global (U.S. & ex U.S.) funds formed between 1981 and 2013. Fund types included in the ILPA Private Markets Benchmark are private equity, venture capital, distressed securities, fund of funds, secondary funds and natural resource funds.

PitchBook U.S. Private Equity Median Return

The PitchBook U.S. Private Equity Median Return is calculated using data from approximately 4,250 U.S. investment funds and excludes venture capital fund. The database of funds includes leveraged buyout, growth equity, fund-of-funds, mezzanine, energy, real estate and venture capital funds.

Preqin Performance Analyst: Private Equity

Compiled using a subset of data from over 5,800 global funds, including leveraged buyout, venture capital, fund-of-funds, mezzanine funds and real estate funds.

All returns reported by private equity benchmarks are calculated on an aggregated basis, net of fees, expenses and carried interest. Returns over periods exceeding one year are annualized.

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California Public Employees’ Retirement System

• As of March 31, 2013, private equity investments1 held by California Public Employees’ Retirement System (CalPERS) were valued at $32.0 billion.

• These investments accounted for approximately 12.4% of assets under management, which is below the target allocation of 14.0%.

• As of March 31, 2013, CalPERS’ current private equity investments achieved a gain2 of $18.9 billion and a 1.4x multiple on contributed capital.

(Time-Weighted Return as of Mar. 31, 2013) 1-Year 3-Year 5-Year 10-Year

Private Equity Investments 13.8% 14.3% 5.5% 11.9%

Custom Benchmark3 20.3% 12.8% 11.2% 12.9%

1. Investments in leveraged buyout, expansion capital, venture capital, credit related and opportunistic funds. 2. (Fair value of remaining investments + distributions) – contributed capital. 3. (67% FTSE US TMI + 33% FTSE AW x-US TMI) + 300bps, lagged one quarter.

Source: California Public Employees’ Retirement System Performance Review by Wilshire – March 2013

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Colorado Public Employees’ Retirement Association

• As of March 31, 2013, private equity investments1 held by Colorado Public Employees’ Retirement Association were valued at $3.4 billion.

• These investments accounted for approximately 8.1% of assets under management, which is above the target allocation of 7.0%.

1. Investments in leveraged buyout, opportunistic, venture capital and fund of funds. 2. Lagged one to three quarters.

Source: Colorado Public Employees Retirement Association Website – Retrieved on October 1, 2013

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Private Equity Investments1 4.5% 12.5% 4.0% N/A

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Connecticut Retirement Plans and Trust Funds

• As of March 31, 2013, private equity investments1 held by Connecticut Retirement Plans and Trust Funds were valued at $2.5 billion.


1. Investments in leveraged buyout, growth capital, distressed debt and venture capital funds. Source: Connecticut Retirement Plans and Trust Funds Performance – March 31, 2013

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S&P 500 Index Benchmark 14.0% 12.7% 5.8% 8.5%

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Louisiana Teachers’ Retirement System

• As of March 31, 2013, private equity investments1 held by Teachers’ Retirement System of Louisiana were valued at $3.8 billion.

• These investments accounted for approximately 26.0% of assets under management, below the 29.0% target allocation.

1. Investments in private equity, real estate, private market debt, and infrastructure/commodities. Source: Teachers’ Retirement System of Louisiana Monthly Report – March 31, 2013

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TRSL Private Asset Benchmark 13.9% 12.5% 7.0% 11.1%

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Michigan Public School Employees Retirement System

• As of March 31, 2013, private equity investments1 held by Michigan Public School Employees Retirement System were valued at $7.8 billion.





1. Investments in leveraged buyout, special situation funds, venture capital, fund-of-funds, liquidation portfolio, mezzanine funds, and other funds. 2. Ending market value weighted blend of 10 yr yield +300 bps and S&P 500 Index+ 300 bps, lagged one quarter. Source: State of Michigan Retirement System Quarterly Investment Review – June 18, 2013

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Minnesota State Board of Investment

• As of March 31, 2013, private equity investments1 held by Minnesota State Board of Investment were valued at $7.5 billion.


1. Investments in private equity, real estate, yield oriented and resource funds. Source: Minnesota State Board of Investment Website – Retrieved on October 1, 2013

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Mississippi Public Employee’s Retirement System

• As of March 31, 2013, private equity investments1 held by Mississippi Public Employee’s Retirement System were valued at $0.65 billion.

• These investments accounted for approximately 3.0% of assets under management.

1. Investments in leveraged buyouts, special situation and venture capital funds.

Source: Minnesota State Board of Investment Website – Retrieved on October 1, 2013

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Private Equity Investments 10.8% 7.1% N/A N/A

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Nebraska Investment Council

• As of March 31, 2013, private equity investments1 held by Nebraska Investment Council’s defined benefit plan were valued at $0.3 billion.



Private Equity Investments 6.2% 13.3% 4.8% N/A

Custom Benchmark2 17.9% 16.4% 9.7% N/A

1. Investments in buyout/corporate finance, venture capital, and special situation funds. 2. Dow Jones U.S. Total Stock Market Index + 300bps. Source: Nebraska Investment Council First Quarter 2013 Performance Review by Hewitt

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New Jersey Division of Investment

• As of March 31, 2013, private equity investments1 held by New Jersey Division of Investment were valued at $5.7 billion and accounted for approximately 7.9% of assets under management.

• Specifically, buyout investments were valued at $3.0 billion and accounted for approximately 4.1% of assets under management.

• As of March 31, 2013, the private equity investments achieved a gain2 of $1.5 billion and a 1.2x multiple on contributed capital.

• Buyout investments achieved a gain of $0.8 billion and a 1.2x multiple on contributed capital.

1. Investments in leveraged buyout, distressed debt, mezzanine debt, secondaries, co-investments and venture capital funds. 2. (Fair value of remaining investments + distributions) – contributed capital. Source: New Jersey Division of Investment’s Investment Reporting Package – March 31, 2013

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Cambridge Associates Benchmark 13.8% 15.0% 6.0% N/A

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North Carolina Retirement System

• As of March 31, 2013, private equity investments1 held by North Carolina State Treasury were valued at $3.6 billion.


1. Investments in leveraged buyout, venture capital, growth equity and special situation funds. 2. Cambridge Associates as modified by North Carolina State Treasury. Source: North Carolina State Investment Advisory Committee Meeting Material – May 29, 2013

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Oregon Public Employees’ Retirement System

• As of March 31, 2013, private equity investments1 held by Oregon Public Employees’ Retirement System were valued at $14.1 billion.


1. Investments in leveraged buyout, distressed debt, mezzanine debt, venture capital and sector funds, as well as fund-of-funds. 2. (Fair value of remaining investments + distributions) – contributed capital. 3. Lagged one quarter. 4. Lagged one quarter. Source: Oregon Public Employees’ Retirement System Quarterly Performance– March 31, 2013

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Private Equity Investments3 14.1% 13.1% 5.6% N/A

Russell 3000 Index4 + 300bps Benchmark 19.9% 14.5% 5.9% N/A

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Pennsylvania Public School Employees’ Retirement System

• As of March 31, 2013, private equity investments1 held by Pennsylvania Public School Employees’ Retirement System were valued at $10.5 billion.

• These investments accounted for approximately 21.0% of assets under management, achieving the target allocation.

1. Investments in private equity, private debt and venture capital funds. Source: Pennsylvania Public School Employees’ Retirement System Quarterly Performance – March 31, 2013

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Texas Teacher Retirement System

• As of March 31, 2013, private equity investments1 held by Teacher Retirement System of Texas were valued at $13.9 billion.

• These investments accounted for approximately 11.8% of assets under management, which is slightly below the target allocation of 12.0%.

1. Investments in leveraged buyout, mezzanine debt, special situation and venture capital funds. 2. Lagged one quarter. Source: Teacher Retirement System of Texas Board Meeting Book: Fourth Quarter Performance Review– July 2013

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State Street Private Equity Index2 Benchmark 12.2% 12.1% 7.4% N/A

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Virginia Retirement System

• As of March 31, 2013, private equity investments1 held by Virginia Retirement System were valued at $4.8 billion.




Russell 3000 Index2 + 250bps Benchmark 18.9% 13.7% 4.6% 10.2%

1. Investments in leveraged buyout, growth equity, special situation, energy, subordinated debt, turnaround and venture capital funds. 2. Lagged one quarter. Source: Virginia Retirement System Performance Summary – March 31, 2013

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Washington State Investment Board

• As of March 31, 2013, private equity investments1 held by Washington State Investment Board were valued at $16.1 billion and accounted for approximately 23.7% of assets under management.

• Specifically, buyout investments were valued at $12.0 billion and accounted for approximately 17.6% of assets under management.

• As of March 31, 2013, the private equity investments achieved a gain2 of $16.5 billion and a 1.5x multiple on contributed capital.

• Buyout investments achieved a gain of $12.4 billion and a 1.5x multiple on contributed capital.



Russell 3000 Index3 + 300bps Benchmark 19.4% 14.2% 5.0% 10.7%

1. Investments in leveraged buyout, growth equity, distressed debt, mezzanine debt, special situation and venture capital funds. 2. (Fair value of remaining investments + distributions) – contributed capital. 3. Lagged one quarter. Source: Washington State Investment Board Quarterly Report and Portfolio Overview by Strategy – March 31, 2013

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2013 quarter 1 performance update

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