Non-U.S. Partnership Portfolio

A Non-U.S. portfolio is structured similarly to a U.S. Partnership portfolio, with partnership investments made over a three- to four-year period. While the charter is wide-ranging, we prefer to seek the most experienced private equity fund managers who will produce excellent risk-adjusted performance, and thus we will not force geographic diversification. Due to the different mix of opportunity sets, a Non-U.S. portfolio invests in a blend of financial stages in its diversified portfolio of private equity partnerships. For example, until recently, there have been relatively few experienced managers in Europe dedicated to early-stage venture capital investments in information technology. However, we are constantly seeking out new and emerging potential investments and expect to invest opportunistically into those early-stage venture partnerships located not only in Europe, but in Israel and Asia, that meet our "best of breed" criteria.

In a Non-U.S. portfolio, approximately 15-30 partnership investments will be made during each investment year predominantly in the growth/expansion capital and buyout subclasses, but with increasing exposure to venture capital over time as opportunities become available.

In a Non-U.S. partnership portfolio, we actively overweight those subclasses and stages in which we believe higher returns can be achieved and underweight those in which we believe lower returns will be generated. Adams Street Partners believes that a portfolio, diversified across the various private equity subclasses, time and geographic regions, should produce superior returns with lower volatility, and therefore lower risk, than strategies that focus on a single subclass, such as venture capital or buyouts.