Oregon Investment Council, Tigard, which manages the $51.5 billion Oregon Public Employees' Retirement Fund, Salem, gave final approval for $100 million to Sageview Capital's Community Bancorp LLC, said James Sinks, spokesman.
The council approved the move at its Feb. 24 meeting but didn't make a commitment until April 8 while council officials negotiated more favorable deal terms, Mr. Sinks said. He declined to provide details on the improved terms.
Sageview is raising capital to fund Community Bancorp, a bank holding company formed to buy the assets and liabilities of failed banks and thrifts from the Federal Deposit Insurance Corp. It hopes to raise $1 billion from state pension funds and similar institutions that will then own stakes in the banks.
Oregon's commitment is contingent on Community Bancorp raising a minimum of $500 million. Under the original proposal, Sageview would earn a structured fee of 1% of total commitments per year, in consideration for serving as structuring adviser. Community Bancorp would pay Sageview 3% of aggregate commitments raised per year, according to a memo by Jay Fewel, senior private equity investment officer for the council.