Oregon Investment Council, Tigard, which manages the $64.9 billion Oregon Public Employees Retirement Fund, Salem, committed $500 million to Lone Star Fund VI US LP, $400 million to Grove Street Advisors for a discretionary private equity portfolio, and $100 million each to Lone Star Real Estate I and KTR Industrial, said Ley Garnett, spokesman. Lone Star VI, with a $5 billion fundraising target, will invest in distressed debt and in financial operating companies. Lone Star Real Estate I has a $1.5 billion target and will invest in opportunistic real estate. KTR Industrial is a closed-end real estate fund with a $750 million fundraising target. Separately, the council tabled until its Feb. 27 meeting a decision on committing $750 million to TPG VI. If approved, this would be the councils largest-ever private equity fund commitment, Mr. Garnett said.
The council also hired Northern Trust Global Investments for an emerging markets equity portfolio, expected to be between $200 million and $300 million, said CIO Ron Schmitz in an e-mail. Funding will come from reducing its $16.1 billion domestic equity portfolio, which exceeds the councils domestic equity target.