Oregon Investment Council, Tigard, committed $100 million each to Sheridan Production Partners II-B and Apollo Financial Credit Investment I subject to successful contract negotiations, said James Sinks, spokesman for the council.
Sheridan is a joint venture between private equity firm Warburg Pincus and Lisa Stewart, CEO of Sheridan, according to a staff memo to the council.
The council, which oversees investments of the $51 billion Oregon Public Employees Retirement Fund, Salem, committed $100 million to an earlier partnership in April 2007. The general partner is committing $50 million, which is about 4% of the fund. It has a $1.3 billion target with a $1.75 billion hard cap, according to a memo from PCG Asset Management, one of the council’s private equity consultants.
The Apollo fund is a special purpose investment fund set up for a small group of institutional investors to buy a portfolio of life settlement policies from an unnamed European bank, according to agenda materials. Apollo‘s plan is to buy the portfolio at an “attractive distressed value,” fund the insurance premiums in part with a credit facility, and eventually see positive cash flow after a period of underperformance. PCG assisted.
The council also delayed issuing RFPs for a general investment consultant and private equity consultant because of the recent consolidation in the consulting industry, according to a separate staff memo. The contract of general consultant Strategic Investment Services was extended through Dec. 31, 2011, and private equity consultant Pension Consulting Alliance’s contract was extended to Dec. 31, 2012. Both were due to expire at the end of this year.
The council also approved replacing John Meier, managing director at SIS, with Mike Beasley, CEO, as the “key man” for the consultant. Mr. Beasley is reducing his role at the firm, according to agenda materials.