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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
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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
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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.