The Willamette University Endowment has committed a total of $89 million to 13 different private equity funds. There is exposure to all styles, types and sizes of private equity funds, from primary and secondary funds to direct private equity funds and funds of funds. Style Breakdown The style breakdown of all capital committed by Willamette: seven buyout funds (54%), two mezzanine funds (16%), two venture funds (13%), one distressed debt fund (3%) and a Private REIT (14%). While there is a clear focus on buyout funds, this private equity portfolio is diversified across all sizes and across all four buyout fund types. Private equity funds are heavily focused on alternative energy, clean technology and healthcare. The Willamette University Endowment has direct primary exposure to these sectors through the Cadent Energy Fund, the TCW European Clean Energy Fund, and the Pinnacle Ventures Equity Fund. These three funds represent approximately 30% of Willamette's committed capital and do not include indirect and secondary exposure to these industries through the other seven funds of funds. Overall, the portfolio is heavily concentrated in the alternative and clean energy sectors. This focus is also a recurring theme in funds of funds. Additionally, exposure to consumer staples, financial services, industrials and materials is minimal. Vintage Years Analysis With the exception of Northgate Private Equity Partners, each fund has vintage years exposure between 2006 and 2008. Funds with vintage years exposure between 2006 and 2008 have been making capital commitments and investments at the peak of the macroeconomic cycle. Historically, these funds that paid higher multiples will have a much higher cost basis than funds with a vintage...... middle of paper ...... allowing these private equity funds to move from not meeting expectations to meeting expectations and therefore exceeding expectations, but this is highly dependent on the future macroeconomic landscape and future credit markets. With a heavy focus on mid-sized buyout funds, private equity managers rely heavily on the ability to leverage and refinance their underlying investments. The 2009 financial crisis created a portfolio drag on mid-sized buyout funds, visible across this portfolio. This is due to a number of capital-intensive and over-leveraged investments which are, or have been, in default in recent years. If macroeconomic conditions and credit markets continue to develop, we could see an improvement in underlying positions. This would allow us to move from a state of not meeting expectations to potentially exceeding expectations...