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Oregon Investment Council earmarks $543 million for buyout, agribusiness funds

Council expects to commit about $9.5 billion to private equity over next 3 years

Oregon Investment Council, Tigard, committed a total of $543 million to alternative investment funds on behalf of the $70.5 billion Oregon Public Employees Retirement Fund, spokesman James Sinks said.

The council committed $250 million to Veritas Capital Fund VI, a small- and midcap buyout fund managed by Veritas Capital Fund Management. It also committed €180 million ($193 million) to TDR Capital IV, also a small- and midcap buyout fund. The council has previously invested with both managers.

Council officials also committed $100 million to Tillridge Global Agribusiness Partners II. Tillridge Global is an affiliate of NGP Energy Capital Management. Oregon has committed to past NGP funds.

Also, the council set its private equity investment pacing for 2017 through 2019. The council expects to commit $3 billion in 2017, $3.15 billion in 2018 and $3.31 billion in 2019. The pension fund currently has $13.9 billion invested in private equity, Mr. Sinks said.

Separately, Oregon PERF’s investments returned 6.9% net of fees in 2016, underperforming its benchmark of 9.04% for the same period, according to figures presented Wednesday to the council.

The pension fund’s annualized return was 9.11% for the five years and 5.47% for the 10 years ended Dec. 31, compared to benchmark returns of 10.07% and 5.94%, respectively.