Oregon may commit up to $2.2 bln to private equity this year

The Oregon Investment Council, which oversees several state trust funds, including the Oregon Public Employees’ Retirement Fund, could commit up to $2.2 billion this year to private equity, according to a person with knowledge of the system.

Oregon has long been one of the more active limited partners in the industry, and in the past few years, has generally tried to put out at least $2 billion.

Oregon, like many other systems, is working to concentrate its portfolio down to its top managers. The system has not sold big chunks of its private equity portfolio on the secondary market, like other large public systems and it likely won’t be exploring that option any time soon, the person said. Instead, the system will allow its manager base to shrink through attrition, or the natural expiration of fund terms.

It has appetite for venture capital, but only on an opportunistic basis – the system doesn’t have a separate allocation to the asset class, but considers it part of the overall private equity program. Last year it committed $50 million to two Union Square Ventures funds — Union Square Ventures 2014 and Union Square Ventures 2014 Opportunities Fund.

Here’s a rundown of some of the system’s commitment activity since October:

  • $100 million to Palladium Equity Partners IV
  • $25 million to Union Square Ventures 2014
  • $25 million to Union Square Ventures 2014 Opportunities Fund
  • $75 million to Tailwind Capital Partners II
  • $100 million to Apollo Investment Fund VIII (a top off to a previously approved commitment)
  • $25 million to CDH Fund V (a top off)
  • $25 million to Morgan Stanley PE Asia IV (a top off)

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