Oregon Investment Council, Tigard, which runs the $70.3 billion Oregon Public Employees Retirement Fund, Salem, committed up to $500 million to private equity fund Blackstone Capital Partners VII, said James Sinks, council spokesman.
Blackstone Group is targeting $15 billion, roughly the same size as Blackstone Capital Partners VI, according to a staff memo. Blackstone has not set a hard cap for Fund VII, which would invest in companies with enterprise values of $500 million to $5 billion. Blackstone executives expect to make 25 to 40 investments, diversified across geography, sectors and strategies from growth equity to development projects, midcap buyouts and large-cap buyouts.
Blackstone Capital Partners VII and Blackstone Energy Partners II are expected to share energy investments on a 60%/40% basis. The Oregon Investment Council committed $200 million to Blackstone Energy Partners II in 2014. It also committed $200 million to Blackstone Capital Partners VI in 2010.
Blackstone is offering economic incentives for large commitments and first-close participants, including a lower-than-market management fee, a standard carry, an 8% preferred return, and a 100% management fee offset — an improvement over its prior fund, the staff memo said.