Amend SB 1447 (committee printing) by inserting the following 
new SECTION to the bill and renumbering subsequent SECTIONS of the 
bill appropriately:
	SECTION ___.  Subchapter D, Chapter 825, Government Code, is 
amended by adding Section 825.3015 to read as follows:
	Sec. 825.3015.  NEW AND EMERGING INVESTMENT MANAGERS; 
THRESHOLD INVESTMENT OPPORTUNITIES. In making investments under 
Section 825.301, the board of trustees shall make a good faith 
effort, consistent with the requirements of that section and with 
the retirement system's fiduciary responsibilities, to:
		(1)  use, after appropriate evaluation by the board of 
trustees, new and emerging investment managers, such as less 
established general partners of private equity funds identified by 
the retirement system as having the underwriting and investment 
qualifications to provide top-quartile investment returns, and who 
may include:
			(A)  new, independent private equity investment 
management firms that have three or fewer funds under management or 
a performance record of less than five years; and
			(B)  private equity funds led by individuals who 
are raising outside third-party capital for the first time, 
including:
				(i)  established firms with an experienced 
team and an attributable performance record;
				(ii)  experienced private equity investors 
who have left an established firm, as a group, to form a new 
management firm;
				(iii)  individuals who have prior private 
equity investment experience but who have limited experience 
working together and who have formed a new management firm; and
				(iv)  individuals who have prior industry or 
private sector experience, such as corporate executives or 
investment bankers, but who have limited private equity investment 
experience and who form a firm to invest in private equity 
investments similar to and consistent with their prior experience; 
and
		(2)  invest and reinvest, based on prudent underwriting 
standards, in private equity investment opportunities that may not 
have the levels of historical distributions and consistent realized 
performance of other retirement system investments but  that:
			(A)  have the majority of the following 
attributes:                 
				(i)  management teams composed of 
knowledgeable and experienced professionals with established 
performance records working together;
				(ii)  senior investment professionals 
recognized in the industry for successfully implementing the 
proposed investment strategy;
				(iii)  a reputation for adhering to 
structured and disciplined acquisition underwriting standards;
				(iv)  unique skills, such as skills relating 
to proprietary deal sourcing, transaction negotiation, valuation, 
financial engineering, corporate restructuring, platform 
development, or venture investing;
				(v)  distinctive insight relative to 
specific industries and markets;
				(vi)  a verifiable reputation among 
portfolio company management for being a value-add investor and 
partner; and
				(vii)  proper alignment of interest 
evidenced by the terms and conditions of the proposed investment 
opportunity; and
			(B)  are identified by the retirement system as 
having the fundamental strategic, organizational, and operational 
characteristics for future investment and reinvestment by the 
system.



LUCIO                                                                       

ELLIS                                                                         

VAN DE PUTTE