Oregon Investment Council, Tigard, which runs the $66.5 billion Oregon Public Employees Retirement Fund, Salem, committed up to $250 million to Energy & Minerals Group Fund III, said James Sinks, council spokesman.
The investment fund has a $2.5 billion target and a $4 billion hard cap, according to agenda materials. Firm executives will make a 2% capital commitment to the fund, in addition to “sizable co-investment commitments,” according to a staff memo to the council. The fund will invest in all facets of the minerals and metals industry, primarily in North America and Australia. This is Oregon Investment Council's first commitment to an EMG fund. Private equity consultant TorreyCove Capital Partners assisted
Separately, the council at its April 30 meeting declined to make a commitment to private equity fund Warburg Pincus Energy. Staff had recommended committing up to $150 million.
One sticking point was the lack of a preferred return, a level of return the manager must meet before the firm could take its portion of the profits. Instead, the firm is offering a lower-than-market management fee and a standard carried interest. None of Warburg Pincus' prior funds offered a preferred return.
Oregon Investment Council has invested in Warburg Pincus Private Equity IX and fund X. Past Warburg Pincus energy investments had been made in global private equity funds.