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92_HR0662 LRB9215291EGfg 1 HOUSE RESOLUTION 2 WHEREAS, The public employee pension funds of Illinois 3 control billions of dollars of assets, which must be invested 4 safely and carefully for the benefit of thousands of public 5 employees in Illinois and their beneficiaries; and 6 WHEREAS, Venture capital partnerships that invest in 7 small businesses and other ventures can improve a pension 8 fund's rate of investment return and contribute significantly 9 to the economic development of this State; and 10 WHEREAS, It has been proposed that the portion of public 11 employee pension fund assets currently invested in venture 12 capital partnerships could be increased without significant 13 risk to the pension funds; therefore be it 14 RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE 15 NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that 16 we respectfully request the Illinois Economic and Fiscal 17 Commission to conduct a study of the investment of pension 18 fund assets in venture capital partnerships by the Illinois 19 State Board of Investment and the pension funds and 20 retirement systems organized under Articles 5, 6, 7, 8, 9, 21 11, 15, 16, and 17 of the Illinois Pension Code, with 22 emphasis on the following questions: 23 (1) For each of the pension funds under 24 consideration, what percentage of the total assets of the 25 fund are currently invested directly or indirectly in 26 venture capital partnerships? 27 (2) For each of the venture capital partnerships 28 that a pension fund is currently invested in, what is the 29 name of the partnership and what is the location of the 30 partnership headquarters? 31 (3) With respect to each investment by a pension 32 fund in a venture capital partnership, what is the date -2- LRB9215291EGfg 1 or dates of the pension board approval of the investment, 2 what is the date or dates during which the investment 3 occurred, what is the total investment of the pension 4 fund, and what is the percentage of equity and debt 5 interest of the pension fund in the venture capital 6 partnership? 7 (4) With respect to the venture capital investments 8 made by venture capital partnerships in which a pension 9 fund has invested, what is: 10 (a) the name of the enterprise in which the 11 venture capital partnership has invested; 12 (b) the location of the headquarters of the 13 enterprise; 14 (c) the total capitalization of the enterprise 15 at the time of the venture capital partnership 16 investment; 17 (d) the present nature and description of the 18 enterprise's business; 19 (e) the stage of development of the enterprise 20 at the time of the investment (seed, start-up, early 21 expansion, middle expansion, later expansion, or 22 transition); 23 (f) the economic sector or sectors to which 24 the enterprise's business belongs (for example: 25 agriculture, financial services, or biotechnology); 26 and 27 (g) the current percentage of public and 28 private ownership of the enterprise? 29 (5) With respect to each venture capital 30 partnership in which a pension fund makes investments, 31 what are the separate numbers and percentages of 32 investments made in enterprises that are headquartered in 33 Illinois? 34 (6) For each pension fund that invests in venture -3- LRB9215291EGfg 1 capital partnerships, what is the annual and cumulative 2 rate of return for each separate investment in a venture 3 capital partnership, what is the aggregate annual and 4 cumulative rate of return of all of the pension board's 5 investments in venture capital partnerships, and how do 6 these returns compare to the national averages of annual 7 and cumulative rates of return for venture capital 8 partnerships? 9 and be it further 10 RESOLVED, That this study shall not include consideration 11 of investments by pension funds in "fund of funds" venture 12 capital partnerships whose investments involve limited 13 partnerships investing in other limited partnerships; and be 14 it further 15 RESOLVED, That the results of this study be presented to 16 the General Assembly by October 1, 2002; and be it further 17 RESOLVED, That a copy of this resolution be delivered to 18 the Executive Director of the Illinois Economic and Fiscal 19 Commission.
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