Assembly Bill 2041 — UC Office of the Chief Investment Officer

Author: California State Assembly (factsheet) URL: https://a30.asmdc.org/sites/a30.asmdc.org/files/pdf/13%20AB%202041%20UC%20OCIO%20Factsheet.pdf One-line: A factsheet for a California bill urging UC Investments to encourage diversity in hiring and among its investment partners, and to launch emerging-manager programs.

Key Highlights

• This bill urges the University of California’s Office of the Chief Investment Officer (UC Investments) to use best efforts to encourage diversity in the hiring of UC Investments staff, urge investment partner firms to use best efforts to encourage diversity, launch emerging manager programs, and encourage start-up firms to develop diverse executive teams.
• UC Investments manages $118 billion as of March 2018, making it a significant “fund of funds” limited partner (LP) in venture capital and private equity investing.

How it connects

• LP — institutional LP policy; the bill directs a $118B LP’s hiring and partner-selection toward diversity and emerging-manager mandates.
• UC Investments — the $118B fund-of-funds the bill targets.
• CalPERS — the California public-pension fund whose equity-manager moves are the companion case for state-fund diversity and emerging-manager policy.
• Almost $14 Billion Pulled From CalPERS Equity Managers — companion read on California public-fund manager diversity and performance.
• Contrary Capital — the bill surfaced in Contrary Capital’s 2022 sourcing/diligence log, the source export for this page.
• Venture Capital — the asset class where UC Investments acts as an LP and where the emerging-manager programs would deploy capital.
• Private Equity — the other asset class named in the factsheet’s “fund of funds” LP role.