PRIVATE EQUITY
Nebraska Investment Council Board Meeting December 13, 2018
Stonetree Capital Advisors Fund of Funds
. Your Investment Portfolio contains a portfolio of 23 individual Partnership Groups managing 38 separate General Partnerships. . Eleven partnerships are in there final phase prior to termination. We anticipate most of these partnerships will have their final exits in the next 12-18 months. . Your Portfolio is well diversified by sector, geography and business type, with over 201 Individual Portfolio Companies owned.
1 SPC Capital Management General Partnerships Segments
. Venture Capital Companies are early stage growth companies developing new products and/or technologies. You own Venture Capital Partnerships with 97 individual investments representing 31% of current market value.
. Buyouts are existing companies in need of capital or new managements to stimulate growth in cash flows and profits. You own Buyout Partnerships with 31 individual investments representing 33% of current market value.
. Special Situations include Distressed Debt and Energy Partnerships. You have 11 of these Partnerships owning approximately 73 individual companies representing 3% and 33% of current market value.
3 SPC Capital Management SPC Investment Performance
SPC Capital’s investment performance inception to 6/30/18
. 17.75 Year Private Equity Performance 6.5% Annualized Return for SPC Capital (Gross Return) 5.5% Annualized Return for SPC Capital (Net Return) 4.5% Annualized Return for S&P 500 Index
4 SPC Capital Management General Partnerships
Discussion of Holdings
Energy Partnerships (Riverstone, 32 Degrees, Lex & Springbok) Edison Venture Partners VII (Venture Fund) Forbion Opus Ventures (Venture Fund) Terra Firma Special Opportunity Funds I & II Trinity XII Trivest Partners (Buyout Funds)
5 SPC Capital Management Active Portfolio Holdings as of 11/28/18 Realized Partnership: Committed Net Invested Market Value Gain\(Loss) Net Gain/(Loss) Return of Principal
32 Degrees Energy III $5,000,000 $4,559,366 $ 6,439,134 $ 22,781 $ 1,902,549 $ 97,053
Carlyle/Riverstone III 6,522,805 903,341 559,826 2,887,963 2,544,484 5,736,835
Dace Ventures 2,000,000 1,017,495 693,846 106,771 (216,879) 926,979
Edison Venture VI 2,500,000 395,708 953,157 149,721 707,170 2,108,157
Edison Partners VIII 7,000,000 6,370,000 8,734,984 2,364,984
First Analysis IV 4,848,112 887,659 2,299,121 1,577,052 2,988,514 3,660,453
First Analysis XII+ 5,000,000 650,000 530,499 0 (119,501) 0
Forbion Capital III 3,275,000 1,247,303 3,460,858 (8,283) 2,205,272 1,027,806
Harrington Partners 7,500,000 0 409,481 4,095,873 4,505,355 8,209,500
AEP II (FKA Kern II) 5,500,000 1,173,199 1,638,127 1,775,456 2,240,384 6,032,867
Lex Energy Partners III 4,500,000 4,002,469 6,763,084 0 2,760,615 246,215
Merced LP II 5,000,000 0 333,074 4,186,638 4,519,712 5,000,000
Merced LP III 3,500,000 83,219 1,301,596 0 1.218,377 3,841,781
Merced LP IV 1,000,000 495,595 740,155 0 244,560 504,405
Opus Capital V 5,000,000 2,042,713 2,756,110 0 713,398 2,957,297
ParkerGale Capital 5,000,000 3,921,285 4,121,597 0 200,312 714,141
Plaza Belmont III 9,192,857 6,563,037 3,154,468 0 (3,408,569) 1,516,821
Riverstone VI 7,000,000 3,975,740 5,292,012 0 1,316,272 2,231,417
Springbok Energy Fund 5,000,000 3,496,979 6,123,239 99,295 2,725,555 2,451,198
Terra Firma III 4,769,600 4,011,438 965,860 158 (3,045,420) 1,506,442
6 SPC Capital Management Active Portfolio Holdings as of 11/28/18
Realized Net Return of Partnership: Committed: Net Invested: Market Value: Gain/(Loss) Gain/(Loss) Principal
TF Capital Ops Fund I 3,200,000 3,031,632 10,077,467 0 7,045,835 0
TF Capital Ops Fund II 1,890,598 1,890,598 3,157,345 0 1,266,747 0
Thayer Capital V 2,500,000 501,891 914,156 1,195,764 1,608,029 2,391,354
Trinity IX 2,500,000 0 377,559 1,169,940 1,547,499 2,498,998
Trinity XII 7,000,000 3,797,500 4,630,633 833,133
Trivest IV 3,500,000 1 219,481 5,205,043 5,424,524 3,776,545
Trivest Growth Inv. Fund 5,000,000 1,913,392 1,999,857 0 86,465 18,577
VSS 5,000,000 2,138,773 1,734,980 141,557 (262,236) 3,642,931
Totals 129,698,972 59,070,333 80,381,706 22,605,729 43,917,102 61,097,772
7 SPC Capital Management Stonetree Capital Fund IV Performance
Fund IV’s investment performance inception to 6/30/18
. 7.5 Year Private Equity Performance 8.2% IRR for Fund IV Capital (Gross Return) 5.5% Annualized Return for Fund IV (Net Return) 11.3% Annualized Return for S&P 500 Index
8 Stonetree Capital Advisors General Partnerships
Discussion of Holdings Bow River Energy Partnerships (32 Degrees, NGP X and Riverstone) Edison Venture Partners VII H.I.G. BioVentures First Analysis V Opus V and Opus VI Trinity XI Trivest V
9 Stonetree Capital Advisors Current Portfolio Holdings as of 11/28/18
Market Realized Net Return of Partnership: Committed Net Invested Value Gain\(Loss) Gain/(Loss) Principal
32 Degrees Energy II $ 5,000,000 $ 3,717 401 $ 2,021,680 $ 102,608 $ (1,593,113) $ 1,561,179 Bow River 2,000,000 444,916 2,135,174 1,690,258 1,318,029 Kobelt BR Co-Invest 504,421 459,135 0 (459,135) 284,670 Edison Partners VII 5,000,000 1,436,634 5,661,559 4,224,925 3,586,077 FA PE V 5,000,000 4,035,459 6,326,676 8,308 2,299,525 1,082,629
H.I.G. BioVentures 3,000,000 1,470,310 2,222,188 751,878 543,619
NGP X 5,000,000 1,649,282 2,569,703 21,968 942,389 3,137,761
Opus Capital V 1,540,445 539,209 1,102,454 2,672 565,916 1,101,236
Opus Capital VI 5,000,000 1,815,586 1,726,747 (88,839) 1,326,424 Riverstone V 5,000,000 3,213,812 4,127,689 21,576 935,453 3,713,041
Tenaska Power Fund II 6,607,889 232,324 202,616 (29,708) 5,549,050
Trinity Ventures XI 5,000,000 3,650,758 6,249,712 2,598,954 599,242
Trivest V 4.500,000 99,526 3,347,620 ___ 113,449 3,361,543 3,866,501__ Total $ 53,152,755 $ 22,764,353 $ 37,693,818 $ 270,581 $ 15,200,046 $27,569,457
10 Stonetree Capital Advisors