Searches and Hires

Oregon commits $500 million to Vista Equity, returns 9.4% for 12-month period

Oregon Investment Council, Tigard, which runs the $76.7 billion Oregon Public Employees Retirement Fund, committed up to $500 million to buyout fund Vista Equity Partners Fund VII, said spokesman James Sinks in an email.

The council has had a long relationship with Vista Equity Partners Management, including total commitments of $1.2 billion across six private equity funds. Vista's latest fund will invest in software, data and technology companies with enterprise values ranging from $75 million to $10 billion. The fund's target is at least $12 billion, according to a staff report for the council's meeting Wednesday.

Separately, the Oregon Public Employees Retirement Fund earned a net return of 9.4% for the year ended June 30, topping its benchmark of 9.19%. However, the pension fund underperformed its benchmark for all other periods, earning an annualized 7.47% for the three years ended June 30, compared to its 7.83% benchmark; 8.59% for five years (9.21% benchmark); and 6.77% (7.3%) for the 10 years ended June 30.

Oregon's fiscal year ends Dec. 31.

The best-performing asset class for the 12 months ended June 30 was private equity, with a 17.75% internal rate of return, outperforming its 17.19% benchmark. Equities returned 11.71%, compared to MSCI ACWI IMI return of 11.14% and the Russell 3000 of 14.78%; real estate, 8.65% (7.11% benchmark); opportunity portfolio, 7.28% (6.98%); alternative investments, 4.45% (6.98%); cash with overlay of 1.47% (1.36%); and fixed income, 0.28% (0.24%).

The pension fund's target allocation is 37.5% public equities, 20% fixed income, 17.5% private equity, and 12.5% each real estate and alternative investments

The opportunity portfolio and cash overlay do not have target allocations, but the pension fund's policy for each asset class is up to 3%.