NAIC Publishes Updated Performance Study

The NAIC announced that it has published an update to its 2012 research paper on diverse private equity firms. Published with the help of KPMG LLC and AON Hewitt, "Examining the Returns: The Financial Returns of Diverse Private Equity Firms," is a research report that provides the most detailed and comprehensive insights on the investment returns generated by diverse-owned private equity firms in the US. The report revealed that on an aggregate basis, diverse-owned firms generated an impressive 16.5% internal rate of return for the 10-year reporting period ending in December 2015. This exceeds the Cambridge Buyout & Growth Equity index of 11.3% by more than 500 basis points.

The report is available on the NAIC website: http://naicpe.com/wp-content/uploads/2017/10/2017-performance-report.pdf

NAIC Institutional Investor Roadshow Heads to New York City

The next NAIC Institutional Investor Roadshow meeting will be held November 13, 2017 from 2-3:30 pm with New York City Comptroller Scott M. Stringer, CIO Scott Evans, Chief Diversity Officer Wendy Garcia, and investment officers from the New York City Employees Retirement System. The meeting will be held at the Office of NYC Comptroller Scott M. Stringer, 1 Centre Street, 5th Floor South, New York, NY. Topics to be discussed include:

• An overall update on the NYCERS emerging manager program and diverse manager initiatives since our July 2015 meeting with NYC Systems
• An open discussion about the program’s strengths, weaknesses, and limitations on diverse managers
• Future plans for the program
• The role NYCERS would like to play in promoting emerging and diverse managers with peers, including the 18 U.S. public pension plans NAIC has engaged with via roadshows since the NYC Systems meeting

Participation will be granted to one representative from the first 20 firms to reply, then a waitlist will be created. To RSVP or for more information, please contact Dawn Simmons - [email protected]. All confirmed attendees will receive the final itinerary and logistics.

SEC Issues Advertising Risk Alert

The SEC's Office of Compliance Inspections and Examinations recently issued a Risk Alert notifying advisors of the most common deficiencies related to the Advertising Rule. The Advertising Rule prohibits an adviser, directly or indirectly, from publishing, circulating, or distributing any advertisement that contains any untrue statement of material fact, or that is otherwise false or misleading. In this installment of Compliance Corner, NAIC partner ICSGroup explains the issues that were cited in the alert included misleading performance results, misleading one-on-one presentations, misleading claim of compliance with voluntary performance standards, cherry-picking recommendations, testimonials, and other related matters.

NAIC Welcomes New Members!

NAIC proudly announced that Hollis Park Partners LP - http://www.hollisparkpartners.com and Gladstone Financial Corporation - http://www.gladstonefinancial.com have joined the association. Hollis Park was founded by Troy Dixon and launched its first fund in 2014 and invests in a broad range of structured products, seeking to produce long-term returns through a combination of long and short positions in securities. Hollis Park manages money for some of the world’s leading institutional investors, including a seed investment from Grosvenor Capital Management, a number of prominent public and private pension funds and fund of hedge funds. Gladstone specializes in providing growth capital to minority owned companies, and other owners of small businesses, overlooked and disproportionally under-represented due to current inefficiencies and historical institutional biases in the capital markets. Since its formation in 2001, Gladstone Capital Corporation (GFC’s parent company) has made over 450 loans or investments in over 200 businesses representing over $1.5 billion invested.

William Blair Proudly Supports NAIC Conference

William Blair, a global investment banking and asset management firm, has partnered with NAIC and sponsored the NAIC Annual Private Equity and Hedge Fund Conference. With more than $88.4 billion in client assets, William Blair’s investment banking transactions have covered more than 35 countries, 775 companies, and $270 billion in value since January 2012. For more information about William Blair, visit https://www.williamblair.com/

NAIC Members in the News

GN Audio Acquires Vicente Capital Portfolio Company

Vicente Capital Partners announced the sale of VXi Corporation (VXi) to GN Audio. VXi Corporation is a leading headset provider of best-in-class, noise cancelling headsets designed for call centers and offices, as well as professionals on the go. Vicente Capital acquired VXi in 2012 and the transaction generated a purchase price multiple approaching 9x. Following VCP’s investment, VXi was able to expand its product line, distributors and double its number of retail stores, leading to improved operational and financial performance.

Jamf to Receive Majority Investment from Vista Equity Partners

Jamf, the leader in Apple device management, announced that it has entered into a definitive agreement to receive a majority investment by Vista Equity Partners. The transaction will allow Jamf to accelerate its growth and innovation through focused investment and strategic acquisitions that drive its mission to help organizations manage Apple devices. Since 2002, Jamf has been focused on helping organizations succeed with Apple. Jamf is committed to enabling IT to empower end users and bring the legendary Apple experience to businesses, education and government organizations via its Jamf Pro and Jamf Now solutions, and the 50,000+ member Jamf Nation community.

The Wicks Group and AEP Capital Complete Sale of Bonded Services Group to Iron Mountain

The Wicks Group of Companies and AEP Capital announced the successful completion of the sale of Bonded Services Group LLC to Iron Mountain Inc. (NYSE: IRM). Bonded is the leading global provider of archival services to the media and entertainment industry. The company manages archival assets in major media markets such as Los Angeles, New York, Toronto, London, Paris, Amsterdam and Hong Kong.

On the Move

Blueprint Capital Names John McAvoy As Partner

Blueprint Capital Advisors has named former Asset Management Finance executive John McAvoy as a partner in the firm. In his new role, McAvoy will be involved in the execution of all investment activities and responsible for the firm’s strategic investments. McAvoy brings more than 30 years of experience in equity and debt capital markets to his new position. Previously, he was president of Asset Management Finance, a subsidiary of Credit Suisse and a market leader in making minority investments in asset managers across a wide range of investment strategies and geographies.