Oregon Investment Council announces private equity, real estate commitments
By Arleen Jacobius | September 21, 2012 4:21 pm
Oregon Investment Council, Tigard, which runs the $57.9 billion Oregon Public Employees Retirement Fund, Salem, conditionally committed $100 million to Public Pension Capital Management, a new private equity evergreen fund managed by two former KKR executives, said spokesman James Sinks.
The commitment is subject to certain conditions, including PPCM closing on at least $500 million in commitments within 12 months.
PPCM was formed earlier this year by Perry Golkin, CEO and co-founder, and Michael Tokarz, co-founder, who both retired from Kohlberg Kravis Roberts in 2002. Mr. Tokarz was formerly general partner and Mr. Golkin was an advisory partner at KKR.
The fund makes minority and control equity investments in small- to middle-market companies. The fund's target is $500 million and is being marketed solely to public pension funds, each committing $100 million, according to another staff memo for the same council meeting.
According to the memo, the fund's “innovative” structure envisions a first closing on March 31, 2013. Each March 31, the fund would be reopened to admit new investors and to allow existing investors to increase their commitments. After three years, investors will be allowed to cancel their uncalled commitments.
An advisory committee made up of the five initial investors will have a number of rights, including the ability to replace Mr. Golkin, and management fees will be budget based as opposed to a straight percentage charge, the memo stated.
The council also committed an additional $125 million to a real estate debt separate account managed by Talmage. Oregon originally committed $300 million to the separate account in 2008.
Talmage's eight-member team operated and managed Guggenheim Structured Real Estate Advisors, a joint venture with Guggenheim Partners that was terminated by both parties in January, and the team formed Talmage, according to a staff memo for the council's Sept. 19 meeting.