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Transparency/Investor Services
In the same way CD&R strives to continuously enhance new investment sourcing, management of its portfolio companies and exit planning/execution, the Firm has taken significant steps to augment its internal management processes and establish best practices for partnership with investors and interactions with broader stakeholders.
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Transparency. CD&R endorsed the Private Equity Principles developed by the Institutional Limited Partners Association to foster better alignment between general partners and investors on a range of governance, transparency and partnership terms. CD&R’s LP Advisory Committee meetings provide an open forum for discussion of the Firm, portfolio company performance, staffing, and other matters of interest and concern to investors. CD&R formalized its fund valuation process in 2008 by engaging a third- party valuation consultant, Duff & Phelps. Duff & Phelps provides positive assurances regarding CD&R’s portfolio company fair value conclusions.
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In addition, CD&R filed its annual update to Form ADV on March 27, 2015. The form, which is publicly available on the SEC’s website, sec.gov, discloses general identification and financial information about CD&R and its funds, in addition to providing enhanced transparency regarding a range of topics including, among other things, the Firm’s code of ethics, cost allocations, allocation of investment and sale opportunities, brokerage practices, public securities voting procedures, expenses, and key persons.
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Industry leadership. Over the past few years, CD&R has led research initiatives, sponsored by the World Economic Forum and Private Capital Research Institute, which examine the global economic impact of private equity. The PCRI, chaired by CD&R’s founder, Joseph L. Rice, III, seeks to produce and disseminate high quality academic research, based in large part on the comprehensive performance databases that the PCRI is building.
On April 1, 2015 the Private Capital Research Institute and the Brookings Institution co-sponsored a conference, hosted by GSV Asset management, focused on private capital’s role in fostering global innovation. -
Investor services. In the past five years, the Firm has made significant investments in its investor relations efforts, operations (finance, IT, HR and compliance) team and financial reporting technology to ensure the highest level of transparency and reporting efficiency. This included the appointment of a partner to lead global investor relations, as well as the implementation of iLevel, a technology solution that streamlines the collection, storage, analysis and reporting of portfolio data. CD&R’s
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investor relations professionals are in ongoing contact with CD&R funds’ investors around the world. In addition to the Annual Limited Partner Meetings, held in both the United States and Europe, and regular quarterly reporting, the Firm sponsors two investor conference calls per year, maintains a secure investor website which includes information tailored for each fund investor, and issues a stream of interim LP Update communications concerning new investment activity, portfolio company developments and Firm-related news. Over the past 18 months, approximately 100 LP Updates have been distributed to CD&R fund investors.
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