Oklahoma State Regents for Higher Education, Oklahoma City, committed $5 million each to Great Hill Equity Partners V and Lime Rock Resources III for its endowment trust fund, confirmed spokeswoman Angela Caddell.
The Great Hill Partners private equity fund invests in growth companies in targeted segments within digital media, e-commerce, Internet infrastructure, financial IT, health-care IT and software. The Lime Rock natural resources fund invests in oil and gas properties.
Separately, the board of regents approved a new target asset allocation for the $638 million endowment to greatly increase the allocation to growth assets while dramatically decreasing risk-reduction strategies in response to the current financial market environment.
Growth strategies are increasing to 53% of the endowment from 26%. Domestic equity will remain at 12%, while international equity is increasing to 16% from 6% and private equity to 15% from 8%. The endowment also added new allocations to global equity and growth fixed income at 5% each.
Meanwhile, domestic fixed income was reduced to 7% from 21%, cash decreased to 2% from 12% and international fixed income fell to 3% from 5%. Absolute-return hedge funds is the only asset class in the risk-reduction portfolio to increase as it moves to 20% from 18%.
Domestic inflation-protected fixed income's long-term target allocation was reduced to zero from 11% although it has target range of up to 10%; REITs/real assets was increased to 15% from 7%.
Investment consultant Mercer Hammond recommended the changes.