UC Seeks to Amend Disclosure Law

The University of California, which has the second-largest endowment of any U.S. public university, is pushing to change a state law that requires disclosure of investments, saying the law restricts its ability to put money in venture capital funds.

State Sen. Joe Simitian (D-Palo Alto) is sponsoring a bill that would allow the university and other public institutions to keep private certain details about their holdings in venture capital, buyout and hedge funds. State disclosure rules allow the public to ask for a range of information about how and where the institutions allocate their funds.

Sequoia Capital, the Menlo Park-based venture capital firm that backed Google Inc. and Cisco Systems Inc., barred the university from its latest fund to avoid public scrutiny.

Simitian’s Senate district includes Sand Hill Road in Menlo Park, known for its concentration of venture capital companies, including Sequoia. UC manages a total of $63 billion.