LPs

Oregon megapledge to megafund: $500 mln to Blackstone VIII

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Oregon Investment Council, private equity, pension fund, Blackstone Group
Oregon state quarter in a group. Lanier/iStock/Getty Images
  • Blackstone’s eighth flagship has $20 bln target
  • Oregon pledged $500 mln to BX’s Capital Partners VII
  • Oregon above 17.5 pct target allocation to PE

Oregon Investment Council at its Jan, 31 meeting approved more than $1 billion of private-markets commitments, including a big pledge to Blackstone Group’s eighth fund.

The council, which manages $75 billion in pension assets and more than $6 billion in other state funds, has exceeded its PE target allocation. But it plans to keep a steady allocation pace while allowing older investments to liquidate over time.

Oregon has a 17.5 percent target allocation to PE, with a 22.1 percent actual allocation.

Oregon committed $500 million to Blackstone Capital Partners VIII; $250 million to Pathway Private Equity C-III, and $400 million to Brookfield Agriculture Fund IV.

The Blackstone fund, targeting $20 billion, continues a relationship that includes three commitments totaling $850 million since 2011. Blackstone plans to pursue large U.S. buyouts for about half the investments, followed by European buyouts, Asian buyouts and energy opportunities.

The $500 million commitment matches what Oregon committed to Blackstone VII and its recent commitment to other core PE managers like Vista Equity Partners.

The Brookfield commitment also extends a current relationship. Oregon has committed $550 million to three previous Brookfield strategies in infrastructure, agriculture and timberland since 2013.

Brookfield is seeking $17 billion in capital commitments for Fund IV, including its own 25 percent contribution, and it plans to hold a first close on or about March 31, 2019, according to Oregon.

Action Item: View the agenda for Oregon’s January meeting here https://bit.ly/2Bfffyp