In a decision filed Thursday, a state appeals court ruled that the University of California is not required to disclose fund information on certain investments since the University does not possess nor own that information.
The decision concerns a 2012 suit that the news agency Reuters filed against the University, calling for the UC to procure and reveal information on its investments with Sequoia Capital and Kleiner Perkins Caulfield & Byers, neither of which provided the UC with its fund information on its investment returns.
Reuters argued that the California Public Records Act, which allows public access to documents owned by public bodies, entitles the agency to this information.
Previous court decisions upheld Reuter’s claims. In 2013, the superior court of Alameda County had ruled that the University is required to use “objectively reasonable efforts” to get that information from the two private equity firms, saying that although the UC does not own the information, it still relates to the University’s business.
However, on Thursday California 1st District Court of Appeal said that although the fund information sought does relate to the public’s business, the University cannot be required to do so since the information was not “prepared, owned, used or retained” by the University.
“The (U)niversity believes in, and vigorously upholds, the public’s right to know as defined by the California Public Records Act,” said Charles Robinson, UC general counsel, in a statement released Thursday. “We believe today’s decision by the Court of Appeal is the correct one. It will allow our investment professionals to make and monitor private equity investments without intrusion from third parties seeking confidential and sensitive information for their own commercial ends.”
No statement was immediately available from Reuters.
In October 2012, when the case was first heard by the Alameda County trial court, the University had about $71.6 billion in investment assets.
Although Sequoia Capital and Kleiner Perkins Caulfield & Byers choose not to disclose fund information to the University, the UC still invests in them because they have proven to be profitable and it can monitor its fund performance by accessing other available information, according to a UC statement.
Compiled by Kristen Taketa, Bruin senior staff.