Investment advisers to the San Jose Federated plans presented quarterly performance updates to trustees on private markets and broader portfolio returns, reporting strong recent absolute returns while cautioning that some private programs are still maturing.

Neuberger's Casey Boyer told trustees the private-equity program showed modest Q1 valuations and a better Q2 pickup, with combined net TVPI (total value to paid-in) near 1.85 in Q1 and a 1.89 preview for Q2, and roughly $14 million in distributions returned since Q1. Boyer said one value-buyout exit produced an 8x multiple for that underlying fund, which materially contributed to recent distributions.

Akita Investment Group's Laura Wyrick reviewed the plan's private-markets programs in detail: private debt stands above its policy target and is returning strong IRRs relative to public-market equivalents; real assets and real estate programs are mature and diversified by vintage year, geography and manager; and the venture program remains immature at about 1.2 percent of the total fund (well below its 4 percent policy target) and has produced little DPI (distributions to paid-in) to date.

Why it matters: Distributions from private funds materially affect reported returns and liquidity. Trustees asked whether the plan's venture program was behind a typical J-curve. Neuberger and Makeda staff said venture capital commonly takes 1015 years to produce most cash returns; they estimated some vintage-year portfolios may start producing materially more distributions in 3 years but cautioned that venture timing varies widely and many funds still show zero DPI for recent vintages.

Public-market context: Makeda's market overview showed 2025's year-to-date returns led by international developed equities and emerging markets; the S&P 500 and major bond indices were also positive year to date. The board heard that the plan's total fund returned 6.2 percent for the quarter (net of fees) and roughly 9.6 percent year-to-date for the trailing 12 months; the total fund's market value was reported near $3.46 billion at the end of Q2.

Trustee concerns and staff responses: Trustees pressed advisers on slow private-market distributions and on whether inflows of new capital and retail-focused "evergreen" private structures could distort sponsor behavior. Advisers said large-cap buyout managers are most likely to access new retail capital, and staff said they will monitor fundraising strategies and concentration risks in diligence processes.

Ending: Trustees asked advisers to keep returning quarter-to-quarter performance and distribution updates; staff said they will present Q2 audited data and more complete distribution figures at the next investment committee and full-board meetings.