New California law limits private equity disclosure

California Gov. Arnold Schwarzenegger has signed a bill restricting the information state public pension plans have to disclose concerning their private equity investments. The new law, signed on Thursday, amends the California Public Records Act and exempts proprietary due diligence materials, financial statements of private equity and venture capital firms, board meeting materials, capital call and distribution notices and alternative investment agreements and materials. Still subject to disclosure are the name and address of each manager, the year each investment was made, the amount invested, rate of return and management fees.