Oregon earmarks up to $700 million to TPG, Blackstone

Oregon Investment Council, Tigard, which runs the $76.6 billion Oregon Public Employees Retirement Fund, committed a total of up to $700 million to three alternative investment funds, spokesman James Sinks said.

The council at its meeting Wednesday committed up to $500 million split pro rata between TPG Partners VIII, an upper-middle market-buyout fund, and private equity health-care fund TPG Healthcare Partners. Not including the latest commitments, the council has made a total of $4 billion in commitments in 15 TPG funds over the past 20 years.

TPG VIII has a $12 billion fundraising target and TPG Healthcare has a $2.5 billion fundraising target.

One concern mentioned in a staff memo to the council is a high rate of turnover at TPG, with 14 investment professionals at the principal level and higher leaving, including nine partners since 2014. During that time, TPG has had a "strategic repositioning" in which TPG changed its investment strategy to sector-focused from its historical investment strategy of investing in companies with operational or transactional complexity, the memo states.

Also, the council committed $200 million to Blackstone Energy Partners III, a private equity energy fund managed by Blackstone Group. The council has invested with Blackstone in the past, including a $200 million commitment to Blackstone Energy Partners II.