Oregon Investment Council, Tigard, committed a total of $350 million to three private markets funds, said Rex Kim, chief investment officer, at the council’s Oct. 23 meeting.
The $94.5 billion pension fund committed $150 million to Stonepeak Global Renewables Fund II, a renewable energy fund. It also committed $100 million each to LBA Logistics Value Fund X, a value-added real estate fund, and LBA Oregon Core Industrial, a joint venture investing in industrial properties, both managed by LBA Realty.
Also, pension fund officials could consider adding private credit to the pension fund’s long-term strategic asset allocation, Kim said at the meeting.
Currently, the pension fund has a small exposure of 3% to 4%, Kim said.
“At some point when we gain conviction, it could be part of the long-term allocation for OPERF (Oregon Public Employees Retirement Fund) as well,” Kim said.
One issue is private credit fees.The council added an 8% long-term target allocation to bank loans and private credit to its $4.4 billion State Accident Insurance Fund.
“That is something we are going to have to discover,” Kim said.
Currently, pension fund officials will commit capital to the same manager from more than one of its capital pools, Kim said. Some managers consider the commitments part of the same package, but others do not, which can impact fees.
“It is something we are going to have to work through,” he said.
