TIME LINE: Trying To Create Standards –

1985

* Limited partners meet to discuss industry issues, particularly performance measurement.

TIME LINE: Trying To Create Standards

1986

* Venture Economics produces a publication for institutional investors called “Opportunities for Investors in Venture Capital,” which reports preliminary performance statistics for the first time.

1987

* Ad Hoc Committee is organized to address calculation standards. It includes representatives from Brinson Partners, Virginia Retirement System, AT&T, Thoma Cressey, and KPMG.

1988

* Venture Economics produces its first “Performance Report,” providing vintage analysis of the private equity industry based on data from several limited partners.

* Ad Hoc Committee proposes the first private equity valuation guidelines.

1989

* Standards are discussed at the NVCA annual meeting, resulting in a “floor fight,” but no guidelines are adopted. NVCA decides it should not take a position on standards, since it is not a regulatory body.

* Non-NVCA working group (including Brinson Partners and AT&T) is established to develop a comparative performance measurement for private equity.

TIME LINE: Trying To Create Standards

1990

* Venture Economics introduces the “Investment Benchmark Report,” the first systematic performance measurement report with long-term statistics on private equity.

1991

* Venture Economics launches an online database with venture capital performance figures.

1993

* AIMR Subcommittee on Private Equity Presentation Standards is formed with representation from AIMR, Brinson Partners, Cattanack & Associates, General Motors Pension Fund, State Street Bank and Venture Economics.

1994

* AIMR Subcommittee issues its presentation standards report, recommending that standard industry guidelines be used for valuation.

TIME LINE: Trying To Create Standards

1999

* April: AIMR adopts GIPS standard.

* July: AIMR announces Investment Performance Council to oversee AIMR Global Investment Performance Standards (GIPS).

2000

* February: AIMR Investment Performance Council members are named and a call is issued for a single global standard for reporting investment returns.

* October: AIMR invites public comment on the proposed “globalization” of its Performance Presentation Standards (AIMR-PPS).

2001

* June: AIMR President Bowman testifies before the U.S. House Subcommittee on Capital Markets regarding private equity reporting.

TIME LINE: Trying To Create Standards

2002

* January: New Ad Hoc “Standards Group” is formed. Representatives (including Bank of America, JPMorgan Partners, NIB Private Equity and Trident Capital) make recommendations on reporting for the venture industry.

* August: Landmark pension fund meeting is organized by New York State Comptroller Carl McCall, North Carolina Treasurer Richard Moore and California State Treasurer Phil Angelides. It brings together representatives of pension organizations from 17states. The emphasis is on public equities, but the same group manages several billion dollars in private equity.

* September: CPP Investment Board, CVCA and ILPA co-host an all-day meeting on reporting standards. Participants include AIMR, BVCA, EVCA, ILPA, NVCA and PEIGG.

* October: AIMR releases proposed guidelines for valuation and reporting for public comment.

* December: The Ad Hoc committee is renamed PEIGG. The membership is expanded and the focus of the group becomes the development of four sets of recommendations on the following: valuation of portfolio .

TIME LINE: Trying To Create Standards

companies, data exchange formats, fund-level reporting and financial statements at the fund level.

* December: AICPA issues proposal for accounting methods required of public, venture capital and other private equity firms.

2003

* March: New York attorney general and comptroller and California treasurer announce an effort to create an office of “Pension Protection and Market Reform.” The goal is to restore public faith in financial institutions and improve corporate responsibility. Private equity oversight is placed in the public policy agenda.

* March: Comment period ends for AIMR’s “Proposed Guidelines for Venture and Private Equity Provisions.”

* April/May: PEIGG asks for industry comment on its first internal draft of valuation proposals.

Source: Original VCJ research and VCJ interviews with Jonathan Boersma of AIMR, Bon French of Adams Street Partners, Stephen Holmes of Interwest, John Taylor of NVCA and Jesse Reyes of Venture Economics.