Oregon Investment Council, Tigard, which oversees the $56.7 billion Oregon Public Employees Retirement Fund, Salem, committed $525 million to KKR North American XI, a private equity fund with an $8 billion to $10 billion target, according to council spokesman James Sinks.
Mr. Sinks said $500 million of the commitment comes from Oregon PERF and $25 million from the $1.1 billion Oregon Common School Fund, Salem.
Before making the commitment, council officials negotiated lower fees with KKR that include distributing 100% of deal fees to the investor, Mr. Sinks said. Typically, transaction fees are split between investors and the private equity manager. Council officials estimate this will save the state at least $2 million, he said.
The lower transaction fees were offered by KKR in exchange for higher management fees, said a source familiar with the terms of the Oregon deal.