Oregon earmarks $1.15 billion for 5 managers

Oregon Investment Council, Tigard, which runs the $69.9 billion Oregon Public Employees Retirement Fund, committed up to $900 million to private equity funds and up to $250 million to a real estate fund, according to spokesman James Sinks and agenda materials for the Wednesday council meeting.

The council at Wednesday's meeting committed up to $250 million to Morgan Stanley (MS) Prime Property Fund, an open-end core real estate fund managed by Morgan Stanley Investment Management. However, Morgan Stanley can invest up to 15% of the fund's total capital in non-core investments including development. This is a new relationship.

The council also disclosed it committed $250 million each to KKR Asian Fund III, an Asia-focused buyout fund managed by KKR & Co.; EnCap Energy Capital Fund XI, an energy-focused growth capital fund managed by EnCap Investments; and GI Partners Fund V, a buyout fund, according to board materials for the council's meeting. Oregon has invested with all of the managers in the past.

The council also committed $150 million to Genstar Capital Partners VIII, a middle-market private equity fund. It is a new relationship.