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funds in which CalPERS is an investor.

Previously, the
information was provided by CalPERS to the authors of a
publicly-available academic article (the article).
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CalPERS
systematically delayed disclosing any records whatsoever to
Petitioner. When CalPERS finally did disclose records, it sent
data pertaining to 2012 and 2013 only. CalPERS position is
that the data it disclosed is consistent with Petitioners
request. Petitioner strenuously disagrees. CalPERS position
undermines article I, section 3(b) of the California
Constitution, which opens government records to public
scrutiny. Petitioner seeks to shed light on whether CalPERS
has been a responsible steward of public employee investment
funds.
FACTS AND PROCEDURAL HISTORY
2. Petitioner Aurora Advisors Incorporated (Aurora) is a New
York corporation. Based in New York City, Aurora is a
management consulting firm. Its areas of expertise include
financial services and corporate finance advisory. It
publishes Naked Capitalism, a blog edited by Susan Webber
(Ms. Webber), Auroras President. The blog has 1.5 million
page views a month and has over 250,000 monthly unique
viewers. Ms. Webber is a respected journalist, writing under
the pen name, Yves Smith. Her blog ranks at or near the top of
various analyses of financial and economic blog influence, in
no small part due to the fact that she has an active
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PETITION FOR WRIT OF MANDATE UNDER THE CALIFORNIA PUBLIC RECORDS ACT
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Jenkinson, Tim and Sousa, Miguel and Stucke, Rdiger, How Fair are the Valuations
of Private Equity Funds? (February 27, 2013). Publicly available at SSRN: http://
ssrn.com/abstract=2229547 or http://dx.doi.org/10.2139/ssrn.2229547
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readership among financial regulators and members of Congress.
For instance, her site was the only blog mentioned in former
FDIC chairman Sheila Bair's book, BULL BY THE HORNS, for having
been instrumental in a regulatory battle. During 2009 and
2010, Ms. Webber was part of a a small group of other
influential economics bloggers who met with Treasury Secretary
Timothy Geithner. Ms. Webber also has many years of experience
working in finance at an elite level. As a former Goldman
Sachs investment banker, McKinsey consultant, and head of
mergers & acquisitions of Sumitomo Bank, she is particularly
qualified to analyze and comment on practices in the
private equity industry, and intends to use the data requested
in an ongoing series of publications on private equity.
3. On or about 29 September 2013, Ms. Webber contacted CalPERS
via a webpage form to request certain private equity returns
data provided by CalPERS to researchers Jenkinson, et al..
4. On 16 October 2013, receiving no response, Ms. Webber again
contacted CalPERS via the website form, tracking number 1385.
(See Exhibit A). Ms. Webber had examined a publicly available
PRA log of all requests received in September 2013 and had not
found a record of her request. She sought confirmation that
CalPERS had 1) received her original 29 September 2013 request
and 2) an explanation of why the request did not appear in the
PRA log for September.
5. Within 24 hours, Barbara Galli, Public Records Act
Coordinator, replied on behalf of the CalPERS Office of
Stakeholder Relations. (See Exhibit B). Ms. Galli found no
record of Auroras September 2013 request, and indicated that
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she would follow up with the Information Technology department
to see if there were any glitches. In the meantime, she
requested that Ms. Webber email her with the request directly.
Ms. Galli wrote that she would then begin the process of
fulfilling [Auroras] request.
6. On 12 November 2013, after realizing that a long time had
passed since her inquiry, Ms. Webber searched for an email
reply and found it in her spam filter. Nonetheless, Ms. Webber
replied to Ms. Galli. (See Exhibit C). Ms. Webber again
requested a copy of the data that was provided by CalPERS to
the authors of the aforementioned article. Additionally, she
indicated that if CalPERS chose to deny her request for the
data, then she also requested all of the correspondence
between CalPERS and the study authors that relates to the data
or their request for it. Ms. Webber explained that she would
use the data to attempt to replicate the authors' analysis
and publish the findings on her blog, Naked Capitalism. She
also requested copies of any executed confidentiality or other
agreements that restricted the authors use of the data.
7. On 5 December 2013, having no reply from CalPERS, Ms. Webber
again contacted Ms. Galli via email. (See Exhibit D). At that
time Ms. Webber also left a voicemail message for Ms. Galli.
8. On 12 December 2013, CalPERS published its list of outstanding
PRA requests, and Auroras was not listed. (See Exhibit E).
Upon discovering that her request was not listed, Ms. Webber
placed a call to Ms. Gallis phone number, obtained from the
signature of her 16 October 2013 email. As Ms. Galli did not
answer, Ms. Webber left her a voicemail.
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9. On or about 2 January 2014, Ms. Webber received a letter from
CalPERS, dated 18 December 2013. The letter indicated that
CalPERs was working on the request and would provide the
documents to her by 27 December 2013. Specifically, CalPERS
claimed that its staff continued to gather[] and review
responsive information for disclosure... (See Exhibit F).
Roughly 2 months had elapsed since her initial request.
10. On 16 January 2014, Ms. Webber had still received no documents
from CalPERS. She sent an email to Ms. Galli yet again
requesting an update. (See Exhibit G). Ms. Webber also yet
again called Ms. Gallis office, and receiving no answer, left
a voice mail.
11. On or about 27 January 2014, CalPERS sent a letter to Ms.
Webber regarding the outstanding records request. (See Exhibit
H). CalPERS position at that time was that the information
provided to the authors of the article was not provided by
CalPERS staff. CalPERS claimed to have nothing to produce,
and considered the matter closed. This was in direct
contradiction to the 18 December 2013 letter quoted in
paragraph 9 of the instant Petition. The statement falls into
the category of technically true, but misleading since of
course, it leaves open the strong likelihood that the data
generated was provided by agents of CalPERS.
12. CalPERS' response was evasive because it avoided mentioning
data that is owned by CalPERS and generated by or at the
direction of CalPERS and/or its agents. It is well-settled
California agency law that actions taken by agents within the
scope of their agency are imputed to the principal. Therefore,
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even if the data were provided by agents of CalPERS, it would
still be disclosable under the PRA.
13. On 1 February 2014, Auroras attorney, Timothy Y. Fong, wrote
a letter to CalPERS, protesting the closure of Petitioners
Public Record Act request. (See Exhibit I). Mr. Fong noted
that the 27 January 2014 letter contradicted CalPERS previous
letter of 14 December 2014. He again requested that CalPERS
release the data previously provided to the authors of the
article.
14. On 4 February 2014, CalPERS counsel, Robert Carlin, spoke with
Mr. Fong via telephone. In response to Mr. Fongs letter of 1
February 2014, Mr. Carlin, explained that CalPERS had no
records of contact with the authors of the article. He related
that if Ms. Webber could put together specific pieces of data
that she was interested in, then CalPERS would produce the
records.
15. On 8 February 2014, Mr. Fong responded to Mr. Carlin via
letter. (See Exhibit J). Mr. Fongs letter noted that Auroras
request was for private equity data that was provided to the
authors and researchers in [the article] located at http://
papers.ssrn.com/sol3/papers.cfm?abstract_id=2229547, titled
"How Fair are the Valuation of Private Equity Funds?" Quoting
from the article, Fong detailed the specific data as the cash
flow, valuation and performance data for the entire current
and historical portfolio of 761 private equity funds invested
in by Calpers [sic]... The article authors received data
dated from the inception of the strategy in 1990, through and
including 31 March 2012.
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16. Additionally, since Mr. Carlin had extended his offer of
assistance, in the same letter of 25 February 2014, Aurora
also requested all 2012 data and all available 2013 data
(presumably at least through 30 September 2013 and fourth
quarter and fourth quarter end data if available). Aurora
specifically excluded any real estate funds from its request.
17. On 20 February 2014, Mr. Fong received a letter from CalPERS
dated 12 February 2014. The letter was signed by Linda M.
Evans, Manager, Strategic Events & Outreach, Office of
Stakeholder relations. Accompanying the letter was a CD. (See
Exhibit K). CalPERS did not provide the data dating back to
1990. Instead, it ignored Auroras repeated request for the
private equity data that was provided to the authors of the
article. (See Exhibit J). Instead, CalPERS only provided data
for 2012 and available 2013 data. CalPERS did provide actual
cash flows on specific dates, data that has not been publicly
available on its website.
18. Aurora had requested the 2012 and 2013 data in addition to the
data from 1990 through 31 March 2012. CalPERS did not provide
said data, and provided no objections. Rather, it simply
failed to disclose it at all.
19. CalPERS indicated that it considered the matter closed.
However, it is inconceivable after repeated written requests
that CalPERS could misconstrue Auroras request.
20. As of 12 February 2014, almost 5 months had passed since Ms.
Webbers first request. CalPERS has failed to comply with
Government Code section 6253(c) which requires that even in
unusual circumstances, public agencies must respond to a
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Public Records Act request within 24 days. CalPERS lost Ms.
Webbers 29 September 2014 request. CalPERS in fact waited
over a month to reply to Ms. Webbers 12 November 2013 letter.
21. CalPERS may claim that it misunderstood Mr. Fongs 25 February
2014 letter to be solely a request for 2012 and 2013 data.
However, CalPERS is barred from that assertion, because it
published a PRA Summary Report for January 2014. (See Exhibit
L). In that log, Auroras request of 27 January 2014 is
described as [a] copy of the data that was provided by
CalPERS to the authors of the article at this link http://
papers.ssrn.com/sol3/papers.cfm?abstract_id=2229547 and that
is the basis for that article. The data is a set of private
equity returns over time for funds in which CalPERS is an
investor. Clearly, CalPERS understood exactly which records
Petitioner sought, and continues to seek.
22. Despite Auroras repeated requests for the records since late
September 2013, CalPERS has stonewalled at every step of the
way, even when it appears to comply.
23. The public has a fundamental and necessary interest in
learning the returns that CalPERS has received on its
investments, and in whether calculations of same are accurate
and repeatable. This is because CalPERS is investing the money
of millions of California public employees, and should
therefore be accountable to the public.
24. Ms. Webber seeks to replicate the findings and analysis of the
article authors. The public has a compelling interest not only
in replicating the scientific result, but also in journalistic
coverage of CalPERS activities.
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REASONS FOR GRANTING WRIT
25. Petitioner applies for the writ of mandate under the
California Public Records Act, Government Code sections 6258
and 6259, which is the PRAs enforcement mechanism. Petitioner
has no plain, speedy and adequate remedy in the ordinary
course of law to secure release of the records sought, other
than the instant Petition.
26. The subject records sought in the instant Petition are vital
to shed light on the conduct of the peoples business under
Government Code 6250 and article I section 3(b) of the
California Constitution, both of which grant Petitioner a
right of access to the records.
27. The subject records are not exempt from disclosure, per
Government Code 6254.5. The rule is that when a state agency
discloses a public record which is otherwise exempt . . . to
any member of the public it waives its ability to exempt the
records. The provision applies not only to employees of the
agency, but also to agents. In the instant case, the subject
records have already been disclosed to Jenkins, et al., the
authors of a publicly-available article, as discussed in
paragraph 1 of the instant writ.
2

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PETITION FOR WRIT OF MANDATE UNDER THE CALIFORNIA PUBLIC RECORDS ACT
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Jenkinson, Tim and Sousa, Miguel and Stucke, Rdiger, How Fair are the Valuations
of Private Equity Funds? (February 27, 2013). Publicly available at SSRN: http://
ssrn.com/abstract=2229547 or http://dx.doi.org/10.2139/ssrn.2229547
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WHEREFORE, Petitioner prays as follows:
1. That CalPERS be ordered to release the records sought in
Exhibits C, I, and J.
2. Alternatively, that the court order CalPERS to show cause why
the records should not be released, and thereafter order the
records released.
3. For an aware of attorneys fees and costs pursuant to
Government Code 6259(d); and
4. For such other and further relief as the court may deem just
and proper.
Dated: ________
____________________
Timothy Y. Fong
Attorneys for Petitioner
Aurora Advisors Incorporated
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/S
26FEB14
INDEX OF EXHIBITS
EXHIBIT A: 16 October 2013 Automated Email from CalPERS
EXHIBIT B: 16 October 2013 Email from Galli
EXHIBIT C: 12 November 2013 Email from Webber
EXHIBIT D: 5 December 2013 Email from Webber
EXHIBIT E: 12 December 2013 CalPERS PRA Log
EXHIBIT F: 18 December 2013 Letter from Galli
EXHIBIT G: 16 January 2014 Email from Webber
EXHIBIT H: 27 January 2014 Letter from Evans
EXHIBIT I: 1 February 2014 Letter from Fong
EXHIBIT J: 8 February 2014 Letter from Fong
EXHIBIT K: 12 February 2014 Letter from Evans
EXHIBIT L: CalPERS PRA Summary Report January 2014
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EXHIBIT A
EXHIBIT B
EXHIBIT C
EXHIBIT D
From: Susan Webber <webber@auroraadvisors.com>
Date: December 5, 2013 8:16:04 PM EST
To: Barbara Galli <Barbara_Galli@CalPERS.CA.GOV>
Subject: Fwd: Public Records Access Request Submission
Ms. Galli,
I sent this request more than three weeks ago. My understanding is that under California law, you are
required to reply in ten days. I have checked my inbox and do not see any response.
I would appreciate you getting back to me on this outstanding matter.
Cheers,
Susan
EXHIBIT E
EXHIBIT F
EXHIBIT G
From: Susan Webber <webber@auroraadvisors.com>
Date: January 16, 2014 7:20:18 AM EST
To: Barbara Galli <Barbara_Galli@CalPERS.CA.GOV>
Subject: Seeking update on private equity data request #1385
Dear Ms. Galli,
I received your letter dated December 18, 2013, stating you expected me to receive the information I
requested by December 27, 2013.
As of January 15, 2014, I have not received anything from your office, which suggests your timetable has
changed.
Have you sent the information? if so, when was it mailed? And if not, when do you expect to provide it?
Thanks for your help,
Susan
EXHIBIT H
EXHIBIT I
Data held by agents of CalPERS is still disclosable. The rule in California is that the
burden is on a public agency to demonstrate the need for nondisclosure. ACLU v.
Superior Court, 202 Cal. App. 4th 55 (2011). In that case, the court held that the proper
test was whether the public interest served by withholding records clearly outweighs
public interest in disclosure. Id. at 66. In ACLU, the plaintiff sought records related to
death penalty drug companies. The California Department of Corrections and
Rehabilitation (CDCR) argued that disclosure of the identities of the companies from
which it obtained execution drugs put companies at physical risk, due to the highly
controversial nature of the death penalty. However, the court found that CDCR had
submitted no evidence of the risks, which the court characterized as unspecified. The
court therefore ruled that public interest in disclosure outweighed CDCRs objections.
In the instant case, there is an overwhelming public interest in the subject data.
CalPERS has no legitimate interest in hiding data that has already been the subject of
analysis published by respected academics. Their main conclusion regarding the data
was that it indicated systematic overstatement of returns by private equity firms in the
course of marketing of their funds to CalPERS. The data appear to suggest that
CalPERS beneficiaries have been victimized by such fraud on dozens, if not hundreds
of occasions, negatively impacting the value of their pension fund. Release of the data
presents zero risks of personal harm; at the very least, far less than the execution drug
records in ACLU v. Superior Court.
There is certainly no public interest in CalPERS hiding the systematic victimization of
retired public employees by private equity fund sponsors. CalPERS may very well
perceive that its institutional interest is best served by hiding the fraud, since the public
may blame the agency for allowing itself to be victimized so repeatedly. The two are not
the same thing, and in this case, diverge sharply. I have every confidence that the
public, which includes my client's many thousands of daily readers,
California lawmakers, and the courts, are capable of recognizing this distinction.
It is also clear that in the instant case, Govt. Code Section 6254.26 exemptions from
disclosure do not apply. You have tacitly conceded this reality by resisting disclosure via
misleading statements, rather than claiming the Section 6254.26 private equity
exemptions. As described in the paper based on the data, the data consists of fund
cash flow and NAV information that is specifically disclosable pursuant to 6254.26(a)(2)
through 6254.26(a)(5). Moreover, by providing the information to researchers with the
understanding that they would publish research based on the data, it has clearly
"already been publicly released. Per Section 6254.26(a), that would void the application
of any exemption from disclosure that might otherwise be available.
Ms. Webber is not only a respected journalist but also has many years of experience
working in finance at an elite level. Under the pen name Yves Smith, she is the creator
of the influential blog Naked Capitalism, which gets 1.5 million page views a month and
has over 250,000 monthly unique viewers. Her blog ranks at or near the top of various
analyses of financial and economic blog influence, in no small part due to the fact that
2
EXHIBIT J
EXHIBIT K
EXHIBIT L





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